HOUSE BILL NO. 940
AN ACT AUTHORIZING THE STATE TREASURER OF THE STATE OF DELAWARE TO APPROPRIATE UNUSED PROCEEDS OR BONDS AND NOTES IN STATE BOND REVERSION ACCOUNTS AND MONEYS IN THE STATE CAPITAL INVESTMENT FUND 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 thereon 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 wellbeing 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 appropriate the funds in the accounts hereinafter set forth to the State Treasurer for the sole purpose to purchase up to 368,500 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 in the proportion as originally appropriated from the Capital Investment Fund and the State Bond Reversion Accounts and shall be credited as interest in like proportion to the Capital Investment Fund and the General Fund for the State Bond Reversion Accounts. The dividends on the stock or interest on the notes if converted, which shall be paid as principal redemption, will in the same proportions be paid when available into the Capital Investment Fund and the State Bond Reversion Accounts.
Section 2. The sum of $3,685,000.00 in the following Bond Reversion Accounts of the State of Delaware consisting of unexpended balances of bond proceeds shall be transferred from such Bond Reversion Accounts and is hereby appropriated to the State Treasurer for the purchase of voting preferred stock of the Farmers Bank of the State of Delaware:
Agency Bond Reversion Account $2,812,000.00 School Bond Reversion Account $873,000.00. Approved April 13, 1976