CHAPTER 39

FORMERLY

HOUSE BILL NO. 115

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT AUTHORIZING THE CITY OF REHOBOTH BEACH TO ISSUE PROMISSORY NOTES OR CERTIFICATES OF INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $1,100,000 TO PROVIDE INTERIM FINANCING FOR THE EXPANSION OF THE REHOBOTH BEACH SEWAGE TREATMENT FACILITIES.

WHEREAS, the City of Rehoboth Beach has sold bonds in the principal amount of $3,000,000 to finance the construction of improvements to its sewer system; and

WHEREAS, additional funds for the project are provided by the City, by other users, the State of Delaware and the Environmental Protection Agency; and

WHEREAS, there is a time lag between the dates when bills due to Engineers and Contractors working on the project are payable and when funds are received by the City from the aforesaid sources; and

WHEREAS, the City expects to have a temporary shortfall of funds in the approximate amount of $1,100,000 arising out of the aforesaid lag in receipt of funds.

NOW, THEREFORE:

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. The City of Rehoboth Beach is hereby authorized to borrow money and to issue promissory notes or other certificates of indebtedness to secure the repayment thereof on the full faith and credit of the City of Rehoboth Beach, not to exceed in the aggregate the principal amount of $1,100,000 without regard to any debt limitation contained in its charter or in any other law for the purpose of providing financing for the expansion of the Rehoboth Beach Sewage Treatment Facilities.

Section 2. Any sum or sums so borrowed shall be secured by a promissory note or other certificate of indebtedness of the City of Rehoboth Beach duly authorized by a resolution adopted by the Commissioners of Rehoboth Beach and signed by the Mayor of the City of Rehoboth Beach and attested by the Secretary of the Commissioners of Rehoboth Beach with the corporate seal affixed and no officer or commissioner shall be liable for the payments of such promissory note or other certificate of indebtedness because it is signed by them as officials of the City and is authorized by resolution of the Commissioners of Rehoboth Beach. Said promissiory notes or other certificates of indebtedness shall be dated, shall bear interest at a rate or rates as may be determined by the Commissioners of Rehoboth Beach and shall mature at such time or times not exceeding three years and shall contain such other terms and conditions as may be fixed by the Commissioners of Rehoboth Beach.

Section 3. The full faith and credit of the City of Rehoboth Beach shall be pledged for the repayment of the principal and interest on Said promissory notes or certificates of indebtedness issued hereunder which shall be general obligations of the City of Rehoboth Beach.

Section 4. Such promissory notes or other certificates of indebtedness issued hereunder shall be exempt from all taxation by the State of Delaware or by any political subdivision, municipality, agency or authority thereof.

Section 5. Any promissory notes or certificates of indebtedness issued by the City of Rehoboth Beach hereunder may be sold by the City at either private or public sale and in such manner and for such price, but not less than par value, as the Board of Commissioners of Rehoboth Beach may determine to be for the best interest of the City.

Approved June 10, 1987.