HOUSE BILL NO. 938
AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW MONEY AND TO ISSUE BONDS AND NOTES THEREFOR AND APPROPRIATE THE FUNDS THUS OBTAINED TO THE PURCHASE OF PREFERRED STOCK OF THE FARMERS BANK OF THE STATE OF DELAWARE.
Be it enacted by the General Assembly of the State of Delaware (three-fourths of all members elected to each house thereof concurring therein):
Section 1. It is hereby determined and declared to
the policy of the State of Delaware to protect the welfare, good order and financial well-being of the State and the citizens thereof and it is hereby further determined and declared as a matter of legislative finding that (1) the good order and financial well-being of the State of Delaware and the welfare of its citizens depends on the continued existence of the Farmers Bank of the State of Delaware as a viable ongoing and independent institution; (2) that the State of Delaware owns 49.3% of the outstanding capital stock of said Bank and that the State maintains substantial deposits in said Bank which are unsecured; and (3) that there has been a substantial adverse change in the financial condition of said Bank which jeopardizes the good order and financial well-being and the welfare of the State and its citizens and in furtherance of the policy herein set forth it is deemed advisable and necessary to authorize the Issuing Officers of the State (as such term is defined in Chapter 74, Title 29, Delaware Code) to borrow moneys for the sole purpose to purchase 1,500,000 shares of a voting preferred issue of stock in the Farmers Bank of the State of Delaware. The dividends paid upon the preferred stock purchased hereby or the interest paid if such stock is converted to notes shall be credited by the State against the debt service and principal redemption of the General Obligation Bonds or Bond An-
ticipation Notes issued to purchase such preferred stock.
Section 2. There is hereby appropriated to the State
Treasuer of the State of Delaware the sum of Fifteen Million Dollars ($15.,000,000) or so much thereof as may be necessary for carrying out the purposes of this Act which money shall be expended for the purchase of the preferred stock of the Farmers Bank of the State of Delaware.
Section 3. The sum of Fifteen Million Dollars
($15,000,000) or so much thereof as may be necessary for carrying out the purposes of this Act shall be borrowed by the issuance of bonds and bond anticipation notes upon the full faith and credit of the State of Delaware. Such bonds and notes shall be issued in accordance with the provisions of Subchapter I, but not Subchapter II of Chapter 74, Title 29, Delaware Code, where applicable, except that notwithstanding the provisions of such chapters, the bonds may, in the discretion of the issuing Officers be term bonds to mature twenty years from the date thereof, shall bear interest at such rate or rates as may be determined by the Issuing Officers upon sale thereof, may be sold by the Issuing Officers at either public or private sale and shall not be subject to or included within any statutory or consitutional debt limitation otherwise imposed upon the issuance of obligations of the State of Delaware..
Section 4. There is hereby appropriated from the
General Fund of the State of Delaware such sums as may be necessary for the expenses incident to the issuance of bonds and notes herein authorized, and such further sums as may be necessary to pay any interest which becomes due on such bonds and notes during the current fiscal year and such further sums as may be necessary for the repayment of the principal of any of the said bonds which become due during the current fiscal year. Vouchers for the payment of the expenses incident to the issuance of bonds and notes and for the interest and repayment of said bonds and notes shall be signed by the Secretary of State by and with the approval of the Issuing Officers. Any funds received from the premium and
accrued interest on the sale of said bonds shall be deposited to the credit of the General Fund.
Section 5. The Budget Appropriation Bill which shall be enacted and approved by the General Assembly for the fiscal year next following the effective date of this Act and for each subsequent fiscal year or biennium, shall contain under the Debt Service Appropriation provisions for the payment of interest on any bonds and notes and principal maturities of the bonds (or notes which are not to be funded by the issuance of bonds) issued under the authority of this Act, and such of the revenues of the State of Delaware as are not prohibited by Consititutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said bonds and notes and payment of interest thereon.
Approved April 13, 1976