CHAPTER 3

FORMERLY

SENATE BILL NO. 100

AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND AN ACT BEING CHAPTER 277, VOLUME 49, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT TO REINCORPORATE THE TOWN OF LAUREL" TO PROVIDE A PROCEDURE FOR BORROWING MONEY AND ISSUING BONDS.

Be it enacted by the General Assembly of the State of Delaware (two-thirds of all members elected to each House thereof concurring therein):

Section 1. Section 15, Chapter 277, Volume 49, Laws of Delaware, as amended, be and the same is hereby further amended by striking out all of Section 15, Chapter 277, Volume 49, Laws of Delaware, as amended, and substituting in lieu thereof the following:

Section 15. Borrowing of Money and issuance of Bonds Limitation of Bonded Indebtedness.

The Town Council may borrow money and issue bonds on certificates of indebtedness to secure the payment thereof on the faith and credit of Mayor and Council of Laurel to provide funds for the erection, the extension, the enlargement, the purchase or repair of any plant, machinery, appliance or equipment; for the supply or the manufacture and distribution of electricity or gas for light, heat or power purposes; for the furnishing of water to the public ; for the construction, repair or improvement of highways, streets or lanes, or for the paving, curbing or erection of gutters along the same; for the construction or repair of sewers or sewage disposal equipment; to defray the cost or the share of the Town of the cost of any permanent municipal improvement or improvements; provided, however, that the borrowing of money therefor shall have been authorized by the Town Council in the manner as follows:

(a) Council by resolution shall propose to the residents and property owners of the Town that a stated amount of money shall be borrowed for any of the above purposes. The resolution shall state the amount of money desired to be borrowed, the purpose for which it is desired, the manner of securing the same, and other pertinent facts relating to the loan which are deemed pertinent by the Town Council and in their possession and shall fix a time and place for a public hearing on the said resolution.

(b) Notice of the time and place of the public hearing on the resolution authorizing said loan shall be printed in a newspaper having a general circulation in the Town of Laurel, or, in the discretion of the Town Council, distributed in circular form at least one (1) week before the time set for the said public hearing.

(c) After the public hearing, a second resolution shall then be passed by Council giving final authorization for the loan if, in the opinion of the individual members of Council, no cause has been shown why the bond issue should not be undertaken; provided, however, that the resolution for the final authorization of the loan shall be passed by a majority of two-thirds (2/3) of all the elected members of Council.

(d) The form of bond or certificate of indebtedness, the interest rate, the time or times of payment of interest, the class or classes of bonds, the time or times of maturity, and provisions as to registration shall be determined by the Council after said public hearing. The bonds may be sold at either public or private sale as determined by the Town Council. The Council may provide in its budget and in the fixing the rate of tax for the payment of principal and interest of said bonds at the maturity or maturities thereof a sinking fund therefor. The full faith and credit of Mayor and Council of Laurel shall be deemed to be pledged for the due payment of the bonds and the interest thereon issued pursuant to the provisions hereof when the same have been properly executed and delivered for value and there shall be no limitation upon the amount of taxes which may be raised by taxation for the payment of interest on and principal of any bonded indebtedness whether before or after the passage of this Act.

() The bonds shall be signed by the Mayor of the Town, the President of the Town Council and attested by the Town Clerk and the corporate seal of the municipality or a facsimile thereof shall be affixed to the bonds and any coupons attached thereto shall bear the facsimile signature of the Mayor. The bonds and the income therefrom shall be exempt from all taxation by the State of Delaware or any political subdivision, agency or authority thereof.

Section 2. The provisions of Section 1 of this Act shall become effective upon approval by the Governor of the State of Delaware and shall remain effective for a period of one year from that date; provided however, that any bond issue commenced within the said period of one year from the date of approval of this Act by the Governor shall be completed under the provisions of Section 1 of this Act notwithstanding that the bonds may be delivered after the expiration of one year from the date of approval of this Act by the Governor of the State of Delaware. The maximum amount of bonded indebtedness which may be incurred pursuant to Section 1 of this Act shall not exceed Four Hundred Twenty-five Thousand Dollars ($425,000).

Section 3. After the expiration of one year from the date this Act is approved by the Governor of the State of Delaware, the Town Council may borrow money and issue bonds or certificates of indebtedness to secure the payment thereof on the faith and credit of the Town of Laurel, to provide funds for the erection, the extension, the enlargement, the purchase or the repair of any plant, machinery, appliance or equipment, for the supply, or the manufacture and distribution of electricity or gas for light, heat or power purposes; for the furnishing of water to the public; for the construction, repair or improvements of highways, streets, or lanes, or the paving, curbing or erection of gutters along the same; for the construction or repair of sewers or sewage disposal equipment; or to defray the cost or the share of The Town of the cost of any permanent municipal improvements; provided however, that the borrowing of money therefor shall have been authorized by the Town Council and shall have been approved by the electors in the manner and at the time following:

(a) Council by resolution shall propose to the electors of the Town by resolution that a stated amount of the money shall be borrowed for any of the above purposes. The resolution shall state that amount of the money desired to be borrowed, the purpose for which it is desired, the manner of securing the same, and other pertinent facts relating to the loan which are deemed pertinent by the Town Council and in their possession, and shall fix a time and place for hearing on the said resolution.

(b) Notice of the time and place of the hearing on the resolution authorizing said loan shall be printed in a newspaper having a general circulation in the City and or, in the discretion of the Town Council, distributed in circular form at least one week before the time set for said hearing.

(c) A second resolution shall then be passed by Council ordering a special election to be held not less than thirty days and not more than sixty days after said hearing to borrow the said money, for the purpose of voting for or against the proposed loan. The passing of the second resolution calling the special election shall ipso facto be considered Council's determination to proceed in the matter in issue.

(d) The notice of the time and place of holding the said special election shall be printed in two issues of a newspaper having general circulation in the Town of Laurel within thirty days prior to the election, and/or distributed in circular form at least fifteen days prior to the election or both at the discretion of the Council.

(e) At the special election, every owner of property, whether an individual, partnership or corporation, shall have one (1) vote and the said vote may be cast either in person or by proxy. In the case of property owned jointly by husband and wife, the vote shall be cast by either the husband or wife who first presents himself at the polls. In the case of all other property owned by more than one property owner either as tenants in common or as joint tenants with the right of survivorship, the vote shall be cast by either tenant in common or by either joint tenant who first presents himself at the polls. Property owners whose property is exempt from taxation or is not assessed shall not be entitled to vote.

(f) The Town Council shall cause to be prepared, printed and have available a sufficient number of ballots not less than five (5) days prior to the date of the Special Election.

(g) The Mayor shall appoint three (3) persons to act as a Board of Special Election to conduct the Special Election.

(h) The Board of Election shall count the votes for and against the proposed loan; and shall announce the result thereof; shall make a certificate under their hands of the number of votes cast for and against the proposed loan, and shall deliver the same to the Council, which said certificates shall be entered on the minutes of the Council, and the original shall be filed with the papers of the Council.

(i) The form of bond or certificate of indebtedness, the interest rate, the time of payment of interest, the classes, the time of maturity, and provisions as to the registration shall be determined by the Council after said public hearing. The bonds may be sold at either public or private sale as determined by the Town Council. The Council may provide, in its budget, and in fixing the rate of tax, for the payment of interest and principal of said bonds at the maturity or maturities thereof, a sinking fund therefor. The faith and credit of the Town of Laurel shall be deemed to be pledged for the due payment of the bonds and interest thereon issued under the provisions hereof, when the same have been properly executed and delivered for value, and there shall be no limitation upon the amount of taxes which may be raised by taxation for the payment of interest on and principal of any bonded indebtedness whether incurred before or after the passage of this Act.

(j) The bonded indebtedness shall not at any time exceed in the aggregate the total sum of Twenty-Five per centum (25%) of the value of the real property situate within the limits of the Town as shown by the last assessment preceding the creation of the said indebtedness.

Approved March 20, 1973.