CHAPTER 120

FORMERLY

HOUSE BILL NO. 265

AN ACT TO RECONFIRM THE CONSTITUTED AUTHORITY STATUS OF NORTHERN DELAWARE INDUSTRIAL DEVELOPMENT CORPORATION TO ISSUE REVENUE BONDS ON BEHALF OF THE STATE OF DELAWARE FOR THE LIMITED PURPOSE OF REFUNDING, REISSUING OR MODIFYING BONDS ISSUED IN 1966 AND 1967 FOR PHOENIX STEEL, CORPORATION.

WHEREAS, 53 Delaware Laws Chapter 167 created the Delaware Industrial Building Commission and authorized the Commission to certify certified development corporations; and

WHEREAS, certified local development corporations were authorized by 53 Delaware Laws Chapter 167 to issue industrial revenue bonds on behalf of the State: and

WHEREAS, Northern Delaware Industrial Development Corporation was certified by the Commission and issued S41 million in industrial revenue bonds for the benefit of Phoenix Steel Corporation in 1966 and 1967, with the express approval of the Commission; and

WHEREAS, ;20,750,000 of those bonds remain outstanding; and

WHEREAS, Phoenix Steel Corporation entered reorganization proceedings under Chapter It of the United States Bankruptcy Code in August, 1983; and

WHEREAS, an essential clement of the plan is the refunding, reissuance or modification of the bonds presently outstanding; and

WHEREAS, 53 Delaware Laws Chapter 167 was repealed and the functions of the Delaware Industrial Building Commission were transferred to the Delaware Department of Community Affairs and Economic Development, and thence retransferred to the Delaware Economic Development Authority; and

WHEREAS, it is deemed desirable to reaffirm the status of Northern Delaware Industrial Development Corporation as a constituted authority to issue obligations on behalf of the State for the limited and specific purpose f reissuing, refunding or modifying the 1966 and 1967 Northern Delaware Industrial Development Corporation bonds.

NOW, THEREFORE:

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

Section 1. The status of Northern Delaware Industrial Development Corporation as a constituted authority to issue obligations on behalf of the State of Delaware for the specific and limited purpose of reissuing, refunding or modifying bonds issued in 1966 and 1967 for the benefit of Phoenix Steel Corporation, of which $20.750,000 in aggregate principal amount are presently outstanding, is hereby confirmed.

Section 2. Nothing herein contained shall be construed to pledge either the faith and credit or the taxing power of the State to the payment of principal of, premium, if any, or Interest on the bonds hereby authorized to be reissued. refunded or modified nor is the State in any manner obligated to make any appropriation for payment thereof.

Approved July 3, 1985