AN ACT TO AUTHORIZE THE MAYOR AND COUNCIL OF WILMINGTON TO ISSUE NEGOTIABLE BONDS AND NOTES FOR LAWFUL PURPOSES AND TO PROVIDE FOR THEIR PAYMENT.
Be it enacted by the General Assembly of the State of Delaware (two-thirds of the Members elected to each Branch thereof concurring therein):
Section 1. The Mayor and Council of Wilmington (hereinafter referred to as "City") shall have power to issue, from time to time, bonds of the City to finance the cost of any object or purpose for which it has lawful authority to raise or appropriate or expend money and which is not a current expense of the City and which has a period of usefulness of at least five years. Such objects or purposes shalt include, but not be limited to, the acquisition, construction, reconstruction, improvement, extension, enlargement and equipment of water supply systems, sewage disposal systems, electric systems, school buildings, fire houses, police stations, libraries, museums, auditoriums, hospitals and all other buildings suitable for the use of the City, highways, streets, curbs, sidewalks, gutters, bridges, boulevards, parks, playgrounds, recreation centers, incinerators, wharfs, docks, harbors, sea walls, storm sewers, culverts and drains, the acquisition of firefighting and other equipment or mobile property, furnishings, machinery and apparatus. The cost of any object or purpose financed by the issuance of bonds under this act shall include the cost of issuing the bonds and any expenses incident thereto.
Section 2. The powers conferred by this act shall be in addition to and not in lieu of or substitution for the powers conferred by any other law. Bonds may be issued hereunder for any object or purpose notwithstanding that any other law may provide for the issuance of bonds for the same or like purposes and without regard to the requirements, restrictions or other provisions contained in any other law. Bonds may be issued under this act notwithstanding any debt or other limitation prescribed by any other law, and the mode and manner of procedure for the issuance of bonds under this act need not conform to the provisions of any other law.
Section 3. Bonds issued by the City pursuant to this act shall be authorized by an ordinance passed by "The Council". Each such ordinance shall state in brief and general terms the object or purpose for which the bonds are to be issued, the period of probable usefulness of such object or purpose, the maximum aggregate principal amount of the bonds to be issued under the ordinance, the date upon which each installment of the bonds shall become due and payable and the maximum rate of interest to be borne by the bonds. All matters not required to be determined by such an ordinance may be determined by subsequent resolutions passed by "The Council".
Section 4. The period of probable usefulness stated in any ordinance shall be computed from the date of the bonds thereby authorized and may not exceed thirty years. The bonds authorized by each ordinance shall mature in annual installments, the first of which shall be payable not more than one year after the date of such bonds and the last of which shall be payable not later than the end of the period of probable usefulness determined by the ordinance authorizing the bonds. No annual installment shall be more than fifty per centum in excess of the smallest prior installment.
Section 5. Bonds issued pursuant to this act shall be negotiable instruments and shall be bonds payable to bearer with coupons attached for the payment of interest to bearer, but provision may be made for the registration of such bonds as to principal only or as to both principal and interest. The aggregate principal amount of bonds to be issued under the ordinance authorizing such bonds, the rate or rates of interest they shall bear, and the times and place or places of payment of the principal of and interest on the bonds shall be fixed by resolution or resolutions adopted by "The Council". Such bonds may be made subject to redemption prior to their respective maturities with or without premium and the bonds may be made payable at such place or places either within or without the State of Delaware as "The Council" may by resolution provide. Such bonds, and any interest coupons representing the interest thereon, shall be issued in such form and shall be executed in such manner as "The Council" may prescribe. The delivery of bonds executed in the manner prescribed by "The Council" shall be valid notwithstanding any change in the officers or in the seal of the City occurring after the signing and sealing of the bonds.
Section 6. Bonds issued pursuant to this act shall be sold by "The Council" as "The Council" may determine, and shall be sold for not less than par and accrued interest at public sale upon sealed proposals after at least ten days' notice published at least once in one newspaper published in the City of Wilmington and in a financial journal published in the City of New York, and upon such terms, conditions and regulations as "The Council" may prescribe.
Section 7. The proceeds of the sale of bonds issued under this act shall be used only for the object or purpose or objects or purposes specified in the ordinance authorizing such bonds or for the payment of the principal of and interest on temporary loans made in anticipation of the sale of such bonds. If for any reason any part of such proceeds are not applied to or are not necessary for such purposes, such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on such bonds.
Section 8. Bonds shall not be issued pursuant to this act if their issuance would increase the aggregate principal amount of all bonds of the City, then outstanding, to an amount in excess of ten per centum of the assessed valuation of the real estate taxable by the City. In computing the aggregate principal amount of bonds of the City for such purpose, there shall be excluded all bonds issued by the City for the purpose of providing a supply of water for the City and all bonds issued by the City pursuant to the Wilmington Sewer Revenue Bond Act of 1949, enacted by Chapter 269 of Volume 47 of the Laws of Delaware, and the acts amendatory thereof.
Section 9. Whenever "The Council" shall have authorized the issuance of bonds by an ordinance adopted pursuant to this act, "The Council" may borrow money in anticipation of the issuance of such bonds so authorized and, for such purpose, may issue, and from time to time renew, negotiable bond anticipation notes of the City, of an aggregate principal amount not exceeding the principal amount of such bonds authorized by such ordinance. "The Council" shall authorize such notes by a resolution or resolutions which shall determine the date on which such notes are to be payable, the maximum principal amount thereof and the rate or maximum rate of interest to be borne thereby and the manner of their signing. "The Council" in such resolution may delegate to the City Treasurer authority to sell the notes thereby authorized, either at public or private sale, and to determine within the limitations prescribed by such resolution the rate of interest to be borne by such notes and the principal amount thereof. Moneys raised by the issuance of notes in anticipation of the issuance of bonds shall be used only to finance the object or purpose for which the proceeds of the bonds may be used and such proceeds shall be applied, to the extent necessary, to pay and retire such notes.
Section 10. The full faith and credit of the City shall be deemed to be pledged for the punctual payment of the principal of and interest on every bond and note issued under this act. "The Council" shall annually levy and collect a tax ad valorem upon all taxable property in the City sufficient to pay the principal of and interest on each such bond or note as such principal and interest become due; provided, however, such tax may be reduced by the amount of other moneys appropriated and actually available for such purpose.
Section 11. All acts or parts of acts inconsistent with the provisions of this act are hereby repealed.
Approved August 19, 1959.