AUTHORIZING BOND ISSUES FOR CONSTRUCTION
OF ARMORIES
AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) AND ISSUE BONDS AND NOTES THEREFOR, TO PROVIDE FOR THE ACQUISITION OF LANDS AND THE CONSTRUCTION, RECONSTRUCTION, REPAIR, IMPROVEMENT AND PURCHASE OF BUILDINGS FOR THE USE OF THE DELAWARE NATIONAL GUARD AND IMPROVEMENTS INCIDENTAL THERETO, AND PROVIDING THE FORM OF SUCH BONDS AND NOTES AS WELL AS THE PROCEDURE FOR THE SALE THEREOF, AND PROVIDING FOR THE PAYMENT OF PRINCIPAL AND INTEREST OF SUCH BONDS AND NOTES, AND APPROPRIATING THE SUM OR SUMS RECEIVED THEREFROM TO THE DELAWARE NATIONAL GUARD.
Be it enacted by the General Assembly of the State of Delaware (three- fourths of all the Members elected to each House thereof concurring, therein) :
Section 1. The Governor, Secretary of State and State Treasurer of the State of Delaware, herein sometimes referred to as the "Issuing Officers", are hereby authorized, fully empowered and directed to borrow upon the full faith and credit of the State of Delaware a sum of money not in excess of Five Hundred Thousand Dollars ($500,000.00), which shall be used for the purpose of construction, reconstruction, repair and improvement of armories, and improvements incidental thereto, and for the acquisition of lands, rights-of-way, and the surveying, razing, grading and landscaping thereof, and for the purchase or lease of buildings and structures for the use of the Delaware National Guard, and for the costs of labor, material, equipment, supplies, and for buildings or any other purposes incidental and necessary to the foregoing; and 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 sum of Five Hundred Thousand Dollars ($500,000.00).
Section 2. Said bonds shall be issued at one time or from time to time as money is required, as the Issuing Officers shall determine. The bonds of each issue shall constitute a separate series. Each series of bonds shall mature in annual installments, beginning not more than one year after the issuance of such series; and no such annual installment shall be less than one twentieth of the principal amount of such series unless it be the final installment. Each series of bonds shall bear interest at a rate or rates not exceeding 3% per annum, payable semi-annually.
Section 3. Said bonds shall be sold by the Issuing Officers at not less than par and accrued interest, under such terms, conditions and regulations as the Issuing Officers may prescribe, after notice of such sale, published at least once ten days or more before the date of sale in at least one daily newspaper published in the State of Delaware and in a financial journal published in the City of New York.
Section 4. In anticipation of the issuance of said bonds, the Issuing Officers may issue and sell notes of the State of Delaware at either public or private sale for not less than par and accrued interest. Said notes shall bear interest at a rate not exceeding 3% per annum. They may be renewed from time to time by the issuance and sale of new notes, but all such notes shall mature and be paid not later than July 1, 1957. The total amount of said notes outstanding at any one time, together with the total amount of said bonds theretofore issued, shall not exceed Five Hundred Thousand Dollars ($500,000.00). Said notes may be redeemed at par and accrued interest prior to their maturity, if the right of the State to do so shall have been reserved by an express provision in the notes. Said notes shall be paid, both principal and interest, out of the proceeds of the sale of said bonds or notes.
Section 5. Said bonds and notes shall be direct general obligations of the State of Delaware, and the faith and credit of the State of Delaware are hereby pledged for the payment of the principal of and the interest on said bonds and notes as such principal and interest respectively become due. The principal of and the interest on said bonds and notes shall be exempt
from taxation by the State of Delaware or by any political subdivision thereof for any purpose whatsoever.
Section 6. The said bonds and notes shall be signed in the name of the State of Delaware, by the State Treasurer and shall be authenticated by the signature or facsimile signature of the Governor and Secretary of State and they shall have the Great Seal of the State impressed thereon. Interest coupons shall be attached to said bonds and shall be authenticated by the signature or facsimile signature of the State Treasurer. The said bonds and notes may be issued notwithstanding that any of the officers signing them or whose facsimile signature appears thereon or on the coupons of said bonds shall have ceased to hold office at the time of such issue or at the time of the delivery of said bonds or notes.
Section 7. The said bonds and notes shall recite that they are issued in pursuance of this Act and the Constitution of this State, and such recital shall be conclusive evidence of the validity of said bonds and notes. Any such bonds or notes containing such recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this Act and to have been issued, executed and delivered in conformity herewith, and shall be incontestable for any cause.
Section 8. The said bonds and notes shall be in such form and in such denomination and may contain such other and further recital and be subject to such terms and conditions, with such privileges as to registration, conversion, reconversion, redemption and exchange, and may contain such other provisions as may be determined by the said Issuing Officers.
Section 9. Any money received from the sale of said bonds and notes, or any series thereof, issued under the provisions of this Act, 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 the purpose of paying the costs and expenses incident to the issuance of said bonds.
There is hereby appropriated to the Delaware National Guard the said sum of Five Hundred Thousand Dollars ($500,000.00), or so much thereof as shall be received from the
sale of the bonds and notes authorized hereby, which shall be used for the purposes set forth herein, and the State Treasurer is hereby authorized and directed to disburse the said moneys upon warrants signed by the Adjutant General of the State of Delaware, stating the use of the moneys for which such warrant calls, which use shall be for the purposes set forth in this Act. Any of said funds remaining unexpended at the end of any fiscal year shall not revert to the use or purposes of any other funds of the State, but shall remain in said account to be used exclusively for the purposes set forth in this Act.
Section 10. The General Assembly hereby appropriates funds sufficient to provide for the payment of interest and principal maturities of said bonds and notes from the day of issue to the end of the biennium on June 30, 1957, and the Budget Appropriation Bill which shall be enacted and approved by the General Assembly at the 119th 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 and notes 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.