AUTHORIZING THE STATE OF DELAWARE TO BORROW $7,548,917.00 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. That 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 Seven Million Five Hundred Forty-eight Thousand Nine Hundred Seventeen Dollars ($7,548,917.00) in order to provide funds in the amounts specified for the following purposes, or so much as shall be appropriated by the 116th 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 constructing and equipping an Education and Home Economics Building on the University campus located at Newark, Delaware, such buildings to include classrooms, research laboratories, and offices for instruction, research and activities relating thereto $1,250,000.00
(b) To be expended by the Board of Trustees of the University of Delaware for constructing and equipping two or more dormitory buildings on the. University campus located at Newark, Delaware, such buildings to include dormitory rooms, lounges, offices and other customary appointments and appurtenances 1,750,000.00
(b) To be expended by the State Board of Health to repair, remodel and construct additions to the present facilities of Brandywine and Edge-wood Sanatoria, to construct and equip a resident physician's residence at Edgewood Sanitorium, and to extend the water supply and sewage treatment plant serving both these
(b) To be expended by the Delaware Commission for the Feeble-Minded for the erection, construction and equipment of a central kitchen at Delaware
(e) To be expended by the State Board of Trustees of the Delaware State Hospital at Farnhurst to complete the construction and furnishing of the new psychiatric unit, to complete the construction and furnishing of the Nurses' Home, to complete the remodeling, repairing and furnishing of the existing Annex Building, to complete the enlargement of the boiler plant and underground electric system and other utilities and to erect and furnish new residences for the employees on the grounds of the Delaware State Hospital at Farnhurst 1,100,000.00
(f) To be expended by the State Welfare Home for capital improvements 90,400.00
(g) To be expended by the State Soil Conservation Commission for the purchase of heavy earth-moving and other machinery needed in the Soil Conservation work of the State 100,000.00
(h) To be expended by the State Board of Welfare and Old Age Welfare Commission for the purchase, repair and renovation of the properties at 905 and 907 West Street in Wilmington, New Castle County, for the purchase of land and the erection of a suitable building in Georgetown, Sussex County, and for the repair, renovation and furnishing of the State-owned building in Dover which is now being used by the State Board of Welfare 200,000.00
(i) To be expended by the State Board of Education or other Boards of Education or School Trustees in the State for the purpose of maintaining public school buildings and grounds in a condition conducive to the health, safety and welfare of the
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 Seven Million Five Hundred Forty-eight Thousand Nine Hundred Seventeen Dollars ($7,548,917.00). 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 1951."
Section 6. The said bonds, as well as the interest coupons thereto attached, shall be issued in such form or forms as the "Issuing Officers" may adopt.
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____
As the said coupons are paid, it shall be the duty of the 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 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." Sufficient notice of sale of said bonds shall be deemed to have been given if said notice shall have been published at least once ten or more days before the date of sale in at least one newspaper published in the State of Delaware and in a financial journal published in the City of New York, and no other publication of such notice of sale shall be necessary; and said bonds may be sold upon such terms and conditions as may be set forth in such notice of sale, provided that the purchase price shall be not less than par and accrued interest. 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, for the purpose of paying the costs and expenses incident to the issuance of said bonds, and for no other purpose whatsoever.
Section 9. That the General Assembly shall appropriate funds sufficient to provide for the payment of interest and principal maturities of said bonds from the date of issue to the end of the ensuing biennium on June 30, 1953, and the Budget Appropriation Bill which shall be enacted and approved by the General Assembly at the 117th 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 21, 1951.