AN ACT TO AUTHORIZE THE GOVERNOR, THE SECRETARY OF STATE AND THE STATE TREASURER TO BORROW MONEY FOR LIABILITIES AND EXPENSES OF THE STATE HIGHWAY DEPARTMENT AND ISSUE NOTES OF THE STATE OF DELAWARE AND APPROPRIATING THE MONIES SO BORROWED TO THE STATE HIGHWAY DEPARTMENT.
WHEREAS, the State Highway Department has undertaken or proposes to undertake the construction or reconstruction of certain roads, highways or bridges as Federal-aided projects, in accordance with project agreements made or to be made by the Secretary of Commerce of the United States with the State Highway Department under Title 23 of the United States Code, and the Federal Government's share of any item of the cost of such projects (including the costs of acquisition of rights-of-way) will not be paid to the State until after such item of cost has been paid by the State, and it is necessary to provide a method for the early realization by the State of the costs for which the State will be reimbursed by the Federal Government;
Be it enacted by the General Assembly of the State of Delaware (three-fourths of all Members elected to each House concurring therein):
Section 1. The Governor, the Secretary of State and the State Treasurer, herein sometimes referred to as the Issuing Officers, are hereby authorized to borrow, from time to time, upon the faith and credit of the State of Delaware such amounts of money as the Issuing Officers determine to be necessary; but the amount borrowed under the authority of this section and unpaid at any time shall not exceed the amount of all then unpaid vouchers which shall have been submitted by the State Highway Department to the United States Bureau of Public Roads for payment by the United States to the State pursuant to project agreements made or to be made by the State Highway Department with the Secretary of Commerce of the United States under Title 23 of the United States Code.
Section 2. For the purpose of borrowing any such sums the issuing Officers are hereby authorized to issue negotiable notes which shall be direct general obligations of the State of Delaware. The public faith and credit of the State are hereby pledged to the payment of said notes and the interest thereon. The Issuing Officers may sell such notes at either public or private sale for not less than par and accrued interest. Each note shall be payable not more than one year after its date but may be renewed from time to time until monies are available for its payment. Each note may be payable or redeemable by the State prior to its stated maturity. Each note shall be executed on behalf of the State by the Governor, the Secretary of State and the State Treasurer and shall be sealed with the Great Seal of the State and shall be in such form and contain such provisions as may be determined by the Issuing Officers. Each note shall specify by number and date the voucher or vouchers submitted by the State Highway Department to the United States Bureau of Public Roads on the basis of which the money is being borrowed.
Section 3. All monies borrowed under this Act are hereby appropriated to the State Highway Department and may be used by the Department for the payment of its liabilities and expenses; provided that this shall not authorize the Department to expend for its operations or for the State's share of the cost of any State or Federal Aid project more money than has been or may be appropriated to the Department under any other statute.
Section 4. In the event the Issuing Officers shall issue notes pursuant to this Act, all monies thereafter received by the State from the United States pursuant to the aforesaid project agreements shall, to the extent necessary to pay the principal of such notes, be set aside by the State Treasurer and applied to the payment of such principal as soon as it is practicable to do so. All interest on such notes shall be paid from the monies appropriated to the State Highway Department either by Chapter 284 of Volume 51 of the Laws of Delaware, or by Chapter 9 of Volume 52 of the Laws of Delaware.
Section 5. The authorization to borrow under this Act shall expire and terminate on June 30, 1960.
Approved September 18, 1959.