CHAPTER 85

FORMERLY

HOUSE BILL NO. 463

AN ACT MAKING A SUPPLEMENTAL APPROPRIATION TO THE DEPARTMENT OF COMMUNITY AFFAIRS AND ECONOMIC DEVELOPMENT TO MEET PAYMENTS OF PRINCIPAL OF AND INTEREST ON CERTAIN INDUSTRIAL REVENUE BONDS ISSUED TO ASSIST KEWA METAL SALTS, INC. AND GUARANTEED BY THE STATE OF DELAWARE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

WHEREAS, pursuant to the provisions of Title 6, Delaware Code, Chapter 70, the Department of Community Affairs and Economic Development ("Department"), issued Industrial Revenue Bonds for the purpose of financing the acquisition of land, the construction of a building and the purchase of equipment by Kewa Metal Salts, Inc. ("Kewa"); and

WHEREAS, the Bonds are guaranteed by the full faith and credit of the State of Delaware, as provided by Title 6, Section 7003 (b), Delaware Code; and

WHEREAS, Kewa Metal Salts, Inc., is insolvent and notice of such insolvency has been given to the Governor and other public officials by letter dated June 14, 1976; and

WHEREAS, the Installment Purchase Agreement ("Agreement") between Kewa and the Department dated July 1, 1974, and supplemented by an agreement dated June 25, 1975 provides that on . June 15 and December 15 of each year, until the Industrial Revenue Bonds have been paid in full, a sum sufficient to meet the installment payment of principal of interest on such Bonds shall be made to the Farmers Bank of the State of Delaware, as Trustee, and that failure to make such payment shall constitute a default; and

WHEREAS, the installment payments required to be made to the Trustee on June 15, 1976 and December 15, 1976 were met by funds in the Advance Installment Reserve Account established by Section 503 of the Indenture of Trust between the Department and the Farmers Bank of the State of Delaware dated July 1, 1974, and supplemented by an agreement dated June 25, 1975 ("Indenture"); and

WHEREAS, the Advance Installment Reserve Account has been depleted by such payments and no appropriation was made in the 1977 Budget Appropriation Act for meeting the State's obligation to make payments of principal of and interest on such Bonds; and

WHEREAS, the Indenture requires that any monies appropriated

by the State for payment of principal of and interest on the Bonds shall first be used to eliminate any deficiency in the Advance Installment Reserve Account; and

WHEREAS the State of payments due December 15, funds to the such Account, in order to preserve the credit and good name of Delaware, and to prevent default op the installment to be made to the Trustee on June 15, 1977 and 1977 it is imperative that the State appropriate Advance Installment Reserve Account to reimburse and to meet such payments.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. The sum of $130,683 is hereby appropriated to the Division of Economic Development of the Department of Community Affairs and Economic Development, for deposit in the Advance Installment Reserve Account established pursuant to Section 503 of the Indenture of Trust between the Department of Community Affairs and Economic Development and the Farmers Bank of the State of Delaware, dated July 1, 1974, and supplemented by an agreement of June 25, 1974.

Section 2. The sum appropriated herein shall be considered a supplemental appropriation and shall be paid by the State Treasurer from the General Fund from monies deposited in such Fund from the sale of bonds issued pursuant to the provisions

of Chapter 75, Volume 61, Laws of Delaware, also known as House Bill 383.

Section 3. Any funds appropriated herein which remain unexpended or unencumbered on June 30, 1977 shall revert to the General Fund.

Approved June 15, 1977.