AUTHORIZING THE STATE OF DELAWARE TO BORROW
$4,169,900.84 AND TO ISSUE BONDS THEREFOR
AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW A CERTAIN SUM OF MONEY FOR SUNDRY CAPITAL IMPROVEMENTS AND EXPENDITURES IN THE NATURE OF CAPITAL INVESTMENTS AND TO ISSUE BONDS THEREFOR.
WHEREAS several agencies of the State of Delaware must expend large sums of money for the erection and construction of new buildings, for repairs and alterations to existing buildings, and for the equipment and furnishing of new and existing buildings, as well as for the purchase of machinery, and for other purposes; and
WHEREAS said expenditures will be in the nature of capital improvements or investments; and
WHEREAS a single issue of State bonds may be administered more efficiently and conveniently than several separate and smaller bond issues; NOW, THEREFORE
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (three-fourths of all the Members elected to each Branch concurring therein):
Section 1. The Governor, the State Treasurer and the Secretary of State of the State of Delaware, hereinafter sometimes referred to as the "issuing officers," are hereby authorized, fully empowered and directed to borrow upon the faith and credit of the State of Delaware a sum of money not in excess of Four Million One Hundred Sixty-Nine Thousand Nine Hundred Dollars and Eighty-Four Cents ($4,169,900.84) in order to provide funds in the amounts specified for the following purposes, or so much as shall be appropriated by the 115th General Assembly of the State of Delaware for such purposes:
(a) To be expended by the Board of Trustees of the University of Delaware for the erection of
agricultural buildings on the University Farm located at Newark, Delaware, such buildings to include classrooms, research laboratories and offices for the research, instruction and extension Staffs . . $1,250,000.00
(b) To be expended by the Delaware Commission for the Feeble Minded for the erection, construction and equipment of certain buildings needed at the State Institution for the Feeble Minded at Delaware Colony
() To be expended by Delaware State College for the erection, construction and equipment of certain buildings needed at said Delaware State College located near Dover, Delaware
(a) To be reallocated by the State Board of Education to Lord Baltimore School District #28 for the purposes set forth in Chapter 171, Volume 46, Laws of Delaware, 1947
To be expended by the State Soil Conservation Commission for the purchase of heavy earth moving machinery and equipment needed in the soil conservation work of the State
() To be expended by the Building and Grounds Commission for repair, alteration, furnishing and equipping of State Buildings in the State Capitol Group and for landscaping and planting State lands at Dover
(a) To be expended by the State Park Commission for the purpose of creating State Parks, and for the construction of buildings thereon and improvements thereof, in Sussex County, Delaware, bordering on the Atlantic Ocean
(b) To be expended by the Ferris School for Boys for the erection of a dormitory cottage and a building for vocational training
(i) To be expended by the State Board of Education, the Special School Districts of the State and the City of Wilmington for delayed and essential repairs to school buildings
(j) To be expended by the State Board of Health for the construction of housing facilities for employees at Brandywine Sanitarium To be expended by the State Old Age Welfare Commission for furnishing a building recently erected at the State Welfare Home 1,074,900.84 48,000.00 35,000.00
The said "Issuing Officers" are hereby authorized, fully empowered and directed to sell, execute and deliver bonds in conformity with the provisions of this Act to an amount not to exceed the said sum of Four Million, One Hundred and Sixty-Nine Thousand Nine Hundred Dollars and Eighty-Four Cents ($4,169,900.84). The said bonds shall be issued in such series and amounts as the "Issuing Officers" shall determine.
Section 2. The said bonds issued in accordance with the provisions of this Act shall be direct general obligations of the State, and the public faith and credit of the State of Delaware are hereby expressly pledged for the full and complete payment of the debt, principal and interest by this Act authorized, of the bonds hereby authorized to be issued and the coupons thereto attached, and the said bonds shall be exempt from taxation by the State or any political subdivisions thereof for any purpose.
Section 3. The said bonds shall recite that they are issued for the purposes set forth in Section 1 of this Act, that they are issued in pursuance of this Act and the Constitution of this State, and upon the sale and delivery of any such bond, such recitals shall be conclusive upon the State of Delaware and all and every other person whatsoever of the right, power and authority for the issuance of said bonds and the legality and validity of such bonds and of the principal debt and interest represented
thereby, and the legality and validity of such bonds thereafter shall never be questioned in any court of law or equity by the State of Delaware or any person or persons for its use or in its behalf, and this provision shall be and become part of the contract and obligation represented by any such bond or bonds.
Section 4. The bonds issued under the authority of this Act shall be in denominations of One Thousand Dollars ($1,000.00), or multiple thereof, as shall be decided by the "Issuing Officers," or the majority of them, with coupons thereto attached for each half year's interest thereon. The said bonds shall be numbered consecutively, and shall bear such dates as the "Issuing Officers" shall fix and shall bear interest at such rate as shall be determined by the bid accepted by the "Issuing Officers," which interest shall be payable semi-annually in each year that such bonds remain unpaid, at the Farmers Bank of the State of Delaware, at Dover, upon presentation of a coupon representing such semi-annual interest.
The said bonds shall mature as the "Issuing Officers" may determine; provided, however, that the principal amount of said bonds, or any series thereof, shall be made to mature fully within twenty (20) years from the date of issue thereof.
The said bonds shall be executed on behalf of the State of Delaware by the Governor, the Secretary of State and the State Treasurer and shall have the impression of the Great Seal of the State thereon. The signatures of the Governor and the Secretary of State may be engraved or printed on such bonds, but the signature of the State Treasurer shall be in his own proper handwriting.
Attached interest coupons shall bear the signature of the State Treasurer which may be engraved, printed or written on such coupons. The coupons attached to each bond shall bear the same number as the bond to which they are attached.
The said bonds, with the coupons attached, may be issued notwithstanding that any of the officers executing them in the manner herein provided shall have ceased to hold office at the time of such issue or at the time of the delivery of the said bonds.
Section 5. For the purpose of designation and identification any bond issued under the authority of this Act shall be known and styled "Capital Improvement Bond of 1949."
Section 6. The said bonds shall be in the following form, to-wit:
UNITED STATES OF AMERICA
STATE OF DELAWARE
No. Capital Improvement Bond of 1949.
THESE PRESENTS CERTIFY AND MAKE KNOWN THAT the STATE OF DELAWARE is held and firmly bound unto the bearer in the sum of Dollars
($ ), lawful money of the United States of America, which the said State promises and binds itself to pay to the bearer at the Farmers Bank of the State of Delaware, at Dover, Delaware, on the day of , A. D. 19 ,
with interest at the rate of per centum ( %), per
annum, likewise payable at the Farmers Bank of the State of
Delaware, at Dover, Delaware, on the day of
and of each and every year, while the said principal sum remains unpaid, upon the presentation of the coupons hereto annexed representing such semi-annual installments of interest.
This bond is one of the bonds authorized to be issued by an Act of the 115th Session of the General Assembly of the State of Delaware entitled "AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW A CERTAIN SUM OF MONEY FOR SUNDRY CAPITAL IMPROVEMENTS AND EXPENDITURES IN THE NATURE OF CAPITAL INVESTMENTS, AND TO ISSUE BONDS THEREFOR," and is issued for the purpose set forth in Section 1 of said Act and in pursuance of said Act and the Constitution of the State of Delaware.
WITNESS the Great Seal of the State of Delaware and the Hands of the Governor, Secretary of State and State Treasurer the day and year aforesaid.
Secretary of State
And the coupons shall be in the following form, to-wit: No.
The State of Delaware will pay to the bearer at the Farmers
Bank of the State of Delaware, at Dover, Delaware, on the first
day of , A. D. 19 , the sum of
Dollars ($ ) for six months' interest on Bond No
Capital Improvement Bond of 1949.
Dated , 19
It shall be the duty of the State Treasurer to provide a record of the proper size and form to be retained in his office, in which he shall keep a record of all bonds which shall be paid and redeemed according to the number thereof, and in addition thereto he shall cause any such bond to be cancelled by making lines with red ink through the signatures of the Governor, Secretary of State and State Treasurer, and also by writing across the face thereof in red ink the following:
"This bond paid and redeemed this. day of
A D 19
State Treasurer to mark the same in red ink across the face "Paid." All bonds paid and redeemed, as well as all coupons paid and cancelled as aforesaid, shall be safely kept by the State Treasurer so long as any bond authorized by this Act is unpaid and not redeemed.
Section 7. Whenever the bonds authorized by this Act may be issued in conformity with the provisions of this Act, the "Issuing Officers" are hereby directed to advertise twice a week for four successive weeks in such newspapers and journals in and out of the State as in their judgment may be conducive to the sale of said bonds, that they will receive bids at such place or places that may be named in said advertisement for such bonds under such regulations as may be made in the discretion of the "Issuing Officers," and the accrued interest between the date of the bonds and the time of sale and delivery of and payment of said bonds shall be adjusted with the purchaser thereof under such regulations as may be made in the discretion of the "Issuing Officers," provided that any overdue coupons attached to the bonds shall, before the sale of said bonds, be detached and cancelled in accordance with the provisions of this Act, and upon the day mentioned in said advertisement as the day for opening bids for said bonds, the "Issuing Officers," or the majority of them, shall receive such bids for the purchase of the bonds designated in said advertisement to be sold, and on the opening of said bids, as many of said bonds as shall have been bid for shall be awarded by the said "Issuing Officers" to the highest responsible bidder or bidders therefor, for cash, provided, the amount bid is adequate in the judgment of the "Issuing Officers," or the majority of them, and is not less than par. If two or more bidders have made the same bid and such bid is the highest, and the bonds so bid for by the highest responsible bidders are in excess of or equal to the whole amount of the bonds so offered for sale, such bonds shall be awarded to such highest responsible bidders bidding the same price in a ratable proportion. If any of said bonds so offered for sale are not bid for, or if any insufficient price be bid for them, they may be subsequently disposed of under the direction of the "Issuing Officers" at private sale upon the best terms they can obtain for the same, provided that they shall not be sold at private sale for less than par and accrued interest.
Section 8. All moneys received from the sale of any or all of said bonds shall be deposited by the State Treasurer in the Farmers Bank of the State of Delaware, at Dover, and shall be used exclusively for the purposes set forth in this Act, and for no other purpose whatsoever.
Section 9. The Budget Appropriation Bill which shall be enacted and approved by the General Assembly at the 116th Session and at each and every subsequent biennial Session thereof, shall contain under the Debt Service Item provisions for the payment of interest and principal maturities of said bonds issued under the authority of this Act, and such of the revenues of the State of Delaware as are not prohibited by constitutional provision or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said bonds and payment of interest thereon.
Approved June 16, 1949.