LAUREL - AUTHORIZED TO BORROW MONEY
AN ACT TO AUTHORIZE MAYOR AND COUNCIL OF LAUREL TO BORROW NOT EXCEEDING $100,000.00, AND TO ISSUE BONDS TO SECURE THE PAYMENT THEREOF, FOR THE PURPOSE OF EXTENDING SEWER AND WATER LINES, INSTALLATION OF A NEW WATER WELL AND THE BROADENING OF SPRUCE STREET IN THE TOWN OF LAUREL.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of each branch of the Legislature concurring therein):
Section 1. Mayor and Council of Laurel, a municipal corporation created by and existing under the Laws of the State of Delaware, is authorized and empowered to borrow on the faith and credit of the municipality a sum of money not exceeding One Hundred Thousand ($100,000.00) Dollars and issue bonds to secure the payment of the amount, for the purpose of providing for the extension of sewer and water lines, the installation of a new water well, and the broadening of Spruce Street in the Town of Laurel.
Section 2. All Bonds issued hereunder shall be known as "Town of Laurel Improvement Bonds, Series of (adding the name of the year in which they shall be issued)." The bonds shall bear date the first day of January or the first day of July in the year of issuance and shall be numbered consecutively beginning with Number One. The Bonds shall bear interest at a rate not exceeding four per centum (4%) per annum, and may or may not be coupon bonds. Interest on the bonds shall be payable on the first day of January and the first day of July in each year, and the principal of the bonds and interest thereon shall be payable at such bank or trust company in the Town of Laurel as Mayor and Council of Laurel may select.
Section 3. The bonds, or any of them, may be made redeemable at the option of the Mayor and Council of Laurel at par and accrued interest at any interest paying date after five (5) years from the date thereof; provided, however, that if Mayor and Council of Laurel shall elect to redeem any of the bonds, notice signed by the President of the Town Council, attested by the Town Clerk, shall be published once each week for two consecutive weeks in a newspaper published in the Town of Laurel, or wanting such newspaper, then in a newspaper published in Sussex County. The notice shall designate the bonds called, and they shall be called in numerical order beginning always with the lowest number. Interest on bonds so called shall cease from the date named for the payment thereof.
Section 4. Mayor and Council of Laurel by resolution or ordinance is authorized and empowered to determine the form of bonds and coupons, the maturity or maturities, the date or dates, redemption options, rate of interest, place of payment, and all other matters and things pertaining thereto except as are herein expressly provided.
Section 5. Mayor and Council of Laurel shall direct and effect the preparation, printing and sale of the bonds. The bonds may be sold through private negotiation at such time and on such terms as may be deemed proper, or by means of advertisement in the public press soliciting sealed bids therefor, and Mayor and Council of Laurel shall then award and sell the bonds to the best responsible bidder; provided, however, that it may reject any or all bids or offers therefor.
Section 6. The bonds issued hereunder shall be signed by the President of the Town Council, and by the Town Clerk, and the corporate seal of the municipality shall be impressed thereon. Facsimile signatures of the President and Town Clerk may be impressed or printed on the coupons that may be attached to the bonds in lieu of the actual signatures of the officials.
Section 7. Mayor and Council of Laurel is authorized and required to levy and raise the taxation, as general municipal taxes are levied and collected, such amount of money in each year as may be necessary to pay the interest accruing on the bonds issued while they, or any of them, remain unpaid, and also such amount of money in each year as may be deemed adequate and necessary to establish a sinking fund for the payment of the bonds at maturity, or for their redemption before maturity. All sewer service charges for sewers extended hereunder, shall be devoted to the payment of interest on the bonds or to the sinking fund. Taxes for the payment of interest and for sinking fund purposes shall be in addition to the aggregate of taxes allowed to be raised for general or special municipal purposes, any provision of the Charter of the Town of Laurel, or amendment thereto, in respect of limitation of debt or amount of taxes to be levied and collected to the contrary notwithstanding.
Section 8. All money derived from the sale of the bonds authorized hereunder shall be applied to the purposes herein set forth.
Section 9. All bonds issued hereunder shall be exempt from all State, County and Municipal taxation and the faith and credit of Mayor and Council of Laurel are pledged for the due payment of all bonds that may be issued hereunder and the interest thereon.
Section 10. Before any bonds shall be issued hereunder, a special election shall be held in the same place and in the same manner and under the same conditions and regulations as to voting as other Town Elections. Notice of said Election shall be given by advertisements in a newspaper published in the Town of Laurel, and by posting notices in at least ten public places in said Town at least two weeks before the Election, in which advertisement and notices the time and place of the Election, the amount of bonds proposed to be issued, and the purpose for which the money is to be borrowed shall be stated.
Mayor and Council of Laurel shall prepare the form of ballots to be used at the Election. If at such Election a majority of the votes cast shall be for the bond issue, the bonds to the amount authorized may be issued as provided herein; but if at such Election a majority shall be against the bond issue, then no bonds shall be issued nor money borrowed under this Act.
Approved May 14, 1951.