AN ACT TO AMEND CHAPTER 331, VOLUME 53, LAWS OF DELAWARE, TO PERMIT SCHOOL DIRECTORS TO ISSUE BOND ANTICIPATION NOTES IN CONNECTION WITH CAPITAL IMPROVEMENTS.
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. Section 16, Chapter 331, Volume 53, Laws of Delaware, is amended by adding the following new paragraphs at the end thereof:
After a favorable local referendum authorizing the sale of local school bonds and in anticipation of the issuance of said bonds, the Board of Trustees or Board of Education of a school district may issue and sell notes of the school district at either public or private sale for not less than par and accrued interest. Said notes shall bear interest at a rate not exceeding three per cent 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 June 30, 1964. Said notes shall be signed by the President and one member of the Board of Trustees or Board of Education of the district and shall be payable at the Farmers Bank of the State of Delaware in the county in which the district is located. All provisions of law pertaining to local school bonds and not inconsistent with the provisions of this Act shall apply to notes issued hereunder.
The total amount of said notes outstanding at any one time, together with the total amount of said bonds theretofore issued, shall not exceed that portion of the total authorized bonded indebtedness of the school district for which bonds have been authorized by local referendum within the district.
Said note may be redeemed at par and accrued interest prior to their maturity if the right of the school district to do so shall have been reserved by an express provision in the notes. The principal of said notes shall be paid out of the proceeds of the sale of said bonds or notes.
Approved May 22, 1962.