CHAPTER 524

FORMERLY SENATE

BILL NO. 565

AN ACT AUTHORIZING THE STATE OF DELAWARE TO ISSUE SERIAL NOTES TO THE STATE EMPLOYEES' RETIREMENT FUND AND APPROPRIATING FUNDS FOR PAYMENT OF THE INTEREST THEREON AND THE REDEMPTION THEREOF.

WHEREAS, it has been determined that there will be insufficient funds available in the General Fund of the State of Delaware to meet fully the State's current obligations to the State Employees' Retirement Fund in accordance with Chapter 55, Title 29, Delaware Code, for the fiscal year ending June 30, 1973; and

WHEREAS, it is fully intended that the State shall not merely defer, but shall definitively and irrevocably meet its commitment to the State Employees' Retirement Fund.

NOW, THEREFORE,

Be it enacted by the General Assembly of the State of Delaware ( three-fourths of all the members elected to each branch thereof concurring therein):

Section 1. The Secretary of Finance is hereby authorized and directed to issue nine serial notes of $1,000,000 each, totaling $9,000,000 dated July 1, 1972 to the Employees' Retirement Fund. Such note shall bear an interest rate of five (5) percent and shall pledge the full faith and credit of the State of Delaware.

Section 2. The notes to be issued, in accordance with Section 1 hereof, shall each mature and become payable at the rate of $1,000,000 annually, plus accrued interest on each of such notes, beginning on July 1, 1973 and on July 1 of each subsequent year.

Section 3. At the instance of the Secretary of Finance, any or all of the notes issued pursuant to this Act shall be callable and payable, including accrued interest, at any time.

Section 4. There is appropriated from the General Fund of the State such sums as may be necessary for the expenses incident to the issuance of the notes herein authorized, and such further sums as may be necessary to pay any interest which becomes due on such notes, and such further sums as may be necessary for the repayment of the principal of any of the said notes. Vouchers for the payment of the expenses incident to the issuance of notes and for the interest and repayment of said notes shall be signed by the Secretary of State by and with the approval of the Issuing Officers.

Section 5. The Budget Appropriation Bill, which shall be enacted and approved by the General Assembly for the fiscal year 1974, and for each subsequent fiscal year or biennium, shall contain, under the Debt Service Item, provisions for the payment of interest and principal maturities of the notes issued under the authority of this Act, and such of the revenues of the State of Delaware as are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said notes and payment of interest thereon.

Approved July 14, 1972.