CHAPTER 320

FORMERLY

SENATE BILL NO. 401

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTERS 65, 67 AND 70, TITLE 9, DELAWARE CODE RELATING TO BONDS AND NOTES ISSUED BY SUSSEX COUNTY GOVERNMENT AND DEBT CREATION POWERS OF SUSSEX COUNTY.

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

Section 1. Amend §651I, Title 9, Delaware Code by striking the last sentence of

§6511(b) and substituting in lieu thereof the following:

The full faith and credit of Sussex County may be pledged to the payment of such bonds and the interest thereon."

Section 2. Amend §6512, Title 9, Delaware code by striking the section In Its entirety

and substituting in lieu thereof the following:

§6512. Sale of Bonds

(a) Any Bonds Issued pursuant to this chapter shall be sold at elther public

or private Sale, upon such terms, condltons, and regulations as the county

government may prescribe; provided, that the county government may authorize the County Administrator to sell such bonds at public or private sale upon such terms, conditions and regulations as It may provide.

(b) If the county government determines to sell such bonds at public sale,
then the county government shall advertise the bonds for sale at least once, 10 or more days before the date of sale, in at least 1 newspaper of general circulation published In the County, and In a newspaper of general circulation published In the
City of New York, inviting bids for the bonds. The advertisements shall state the
total amount of the proposed Issue, the denominations of the bonds, the place of payment of the bonds and interest, the place and date of opening bids, the conditions under which the bonds are to be sold, and such other matters as the county government may determine. The county government may give notice of the sale of the bonds In such other manner as it may decide.

(a) The county government may require each bid for the bonds to be accompanied by a certified check in the amount of the bid. After the bonds are awarded or sold to the successful bidder or bidders therefor, the county government shall return to the unsuccessful bidder or bidders the certified check or checks submitted with the bid or bids.

(b) The county government may reject any and all bids. but In awarding the
sale of the bonds, or any of them, they shall be sold to the purchaser or purchasers which, in the judgment of the county government, offers the most advantageous terms

(c) The county government shall direct and effect the preparation and printing
of the bonds authorized by this chapter, shall determine whether such bonds shall be registered or bearer with coupons convertible Into fully registered bonds, and shall prescribe the form of the bonds and, in the case of bearer bonds with coupons, the form of the coupons for the payment of interest thereto attached. The bonds shall state the conditions under which they are Issued, the face amount of tha bonds and, in the case of bearer bonds with coupons, the coupons thereto attached shall be payable at such place or places as may be designated by the
county government The bonds shall be executed, sealed, and delivered as
prescribed by the county government."

Section 3 Amend §6702, Title 9, Delaware code by striking §6702(4) in Its entirety and

substituting in lieu thereof the following

"(4) Issue Its negotiable or nonnegotiable bonds to finance, either In whole or In

part, the cost of the planning, acquisition, purchase, construction, reconstruction, improvement, betterment or extension of any sewerage or water system, and, If the county government so determines, pledging the full faith and credit of the County to the punctual payment of the bonds and the interest thereon,'

Section 4. Amend §6704, Title 9, Delaware Code by striking §6704(a) thereof and

substituting in lieu thereof the following:

"(a) The planning, acquisition, purchase, construction, reconstruction,

improvement, betterment or extension of any sewerage or water system may be authorized under this chapter, and bonds may be authorized to be issued under this chapter to provide funds for such purpose by ordinance or resolution of the county government."

Section 5. Amend §6704, Title 9, Delaware Code by striking §6704(c) thereof in its

entirety and substituting in lieu thereof the following:

"(c) The bonds shall bear interest at such rates, may be in 1 or more series, may bear such dates, may mature at such times not exceeding 40 years from their respective dates, may be payable in such medium of payment, at such place or places, may carry such registration privileges, may be subject to such terms of redemption, may be executed in such manner, may contain such terms, covenants and conditions, and may be In such form, either coupon or registered as the ordinance or resolution provides. The reasonable
expense of issuing such bonds shall be deemed part of the cost of constructing the sewer or water facilities."

Section 6. Amend Section 6704, Title 9, Delaware Code by striking subsections (d), (e), (f), (g), (h) and (I) thereof and substituting in lieu thereof the following:

"(d) Bonds issued pursuant to this chapter may be sold at either public or private sale, upon such terms, conditions, and regulations as the county government may prescribe; provided, that the county government may authorize the County Administrator to sell such bonds at public or private sale upon such terms, conditions and regulations as it may provide.

(e) If the county government determines to sell such bonds at public sale, then
the county government shall advertise the bonds for sale at least once, 10 or more days before the date of sale, In at least 1 newspaper of general circulation published In the County, and In a newspaper of general circulation published in the City of New York, inviting bids for the bonds. The advertisements shall state the total amount of the
proposed issue, the denominations of the bonds, the place of payment of the bonds and interest, the place and date of opening bids, the conditions under which the bonds are to be sold, and such other matters as the county government may determine. The county
government may give notice of the sale of the bonds in such other manner as it may decide.

(a) The county government may require each bid for the bonds to be accompanied by a certified check in the amount of the bid. After the bonds are awarded or sold to the successful bidder or bidders therefor, the county government shall return to the
unsuccessful bidder or bidders the certified check or checks submitted with the bid or bids.

(a) The county government may reject any and all bids, but In awarding the sale of the bonds, or any of them, they shall be sold to the purchaser or purchasers, which, In the Judgment of the county government, offers the most advantageous terms.

(a) The county government shall direct and effect the preparation and printing of the bonds authorized by this chapter, shall determine whether such bonds shall be registered or bearer with coupons convertible into fully registered bonds, and shall prescribe the form of the bonds and, in the case of bearer bonds with coupons, the form of the coupons for the payment of interest thereto attached. The bonds shall state the
conditions under which they are issued, the face amount of the bonds and, in the case of bearer bonds with coupons, the coupons -thereto attached shall be payable at such place or places as may be designated by the county government. The bonds shall be executed, sealed, and delivered as prescribed by the county government.

(1) Pending the preparation of the definitive bonds, interim receipts or

certificates in such form and with such provisions as the county government determines may be issued to the purchasers of bonds sold pursuant to this chapter."

Section 7. Amend §6/05, Title 9, Delaware Code by striking the last sentence of §6705

(b) and substituting in lieu thereof the following:

"The ordinance or resolution authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and of the regularity of their issuance."

The full faith and credit of the County may be pledged to the payment of any bonds Issued by the County under this chapter. The county government may annually appropriate to the payment of bonds Issued under this chapter and the Interest thereon the amounts required to pay such bonds and Interest as the same becomes due and payable."

Section 8. Amend §6706, Title 9, Delaware Code by striking the first sentence and

second sentences thereof and substituting in lieu thereof the following:

Section 9. Amend §6707, Title 9, Delaware Code by striking the words "In the event that the County Issues bonds, the resolutions authorizing" as they appear In subsection (a) and substituting In lieu thereof the following:

"In the event that the County Issues revenue bonds, the ordinance or resolution authorizing"

Section TO. Amend §6707, Title 9, Delaware Code by striking subsection (b) thereof and

substituting In lieu thereof the following:

"(b) The provisions of this chapter and any such ordinances or resolutions shall
be a contract with the holder of the bonds, and the duties of the County and of the county government and officers under this chapter, and any such ordinances or resolutions shall be enforceable by any bondholder by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction."

Section 11. Amend Section 6708, Title 9, Delaware Code by striking subsection (c)

thereof In its entirety and substituting in lieu thereof the following:

"(c) The service charges when collected shall be applied to the payment of the
bonds and Interest and to the expenses of such operation and maintenance In accordance with the ordinance or resolution authorizing the bonds."

Section 12. Amend Section 6709, Title 9, Delaware Code by striking subsection (a)

thereof and substituting In lieu thereof the following:

"(a) The county government may charge and collect rents, rates, fees, or other

charges (in this chapter sometimes referred to as service charges) for direct or Indirect connection with, or the use or services of, any sewerage or water system. Such service charges may be charged to and collected from any person contracting for such connection or use or service, or from the owner or occupant, or both of them, of any real property which directly or indirectly Is or has been connected with a sewerage or water system, or from or on which originates or has originated sewerage which directly or indirectly has entered or may enter Into a sewerage system, or into which water from a water system may enter directly or indirectly, and the owner or occupant, or both of them, of any such real property shall be liable for and shall pay such service charges to the County at the time when, and place where, the county government by ordinance, resolution, rule or regulation determines that such charges are due and payable."

Section 13. Amend §7002, Title 9, Delaware Code by striking subsection §7002(t) thereof

In Its entirety and substituting In lieu thereof the following:

/002(t) Creation of debt:, authorization, procedures, debt limitation

and anticipation borrowing

(1) The county government shall exercise all powers heretofore vested In the county
government of Sussex County In connection with the creation of debt, and shall have the power to authorize the Issuance of bonds and notes of Sussex County to finance the cost of any object. program or purpose for which Sussex County, or any officer, department, board or agency thereof, is, by this title or by any other law, authorized to raise, appropriate or expend money. or for the implementation and performance of functions, programs and purposes specified In this title or In any other law applicable to Sussex County: provided, however, that the county government shall not have authority to create or to authorize the creation of any bonded Indebtedness for any of the following purposes. The payment of any operating expenses; the payment of any judgment resulting from the failure of the County to pay any Item of operating expense; or the payment for any equipment or any public improvements of a normal life of less than 3 years. The foregoing limitations shall not
apply should the county government unanimously declare the existence of any emergency due to public calamity.

(1) The powers conferred by this chapter shall be In addition to and not in

substitution for or in limitation of the powers conferred by any other law. Bonds and notes may be issued under this chapter for any object or purpose for which Sussex County is by this chapter or any other law authorized to raise or appropriate or expend money notwithstanding that any other law may provide for the issuance of bonds or notes for the same or like purposes and without regard to the requirements, restrictions or other orovis'ons contained In any other law Bonds and notes may be issued under this chapter

notwithstanding any debt or other limitation prescribed by any other law, and the mode and manner of procedure for the issuance of bonds and notes and the adoption of the ordinance authorizing issuance of the bonds or notes under this chapter need not conform to the provisions of any other law or any other provision of this chapter.

(3) Bonds and notes issued pursuant to this chapter shall be authorized by ordinance of the county government approved by not less than four-fifths of all of the members thereof. Each such ordinance shall state In brief and general terms the objects or purposes for which the bonds are to be Issued and the maximum aggregate principal amount of bonds to be Issued for each such object or purpose. Such ordinance, or a subsequent resolution of the county government, shall specify, or may delegate authority to the County Administrator to determine, with respect to any bonds and notes the following: their date or dates; their
maturity; the security therefor, If any, Including a pledge of the County's full faith and credit, If there is to be such a pledge, federal or state grants, or other revenues or property; provisions for either serial or term bonds; sinking fund or other reserve fund requirements, If any; provisions for redemption prior to maturity, if any, with or without premium; the Interest rate or rates, including variable rates, and any limitations with respect thereto or the manner of their determination; the times and place or places within or without this State for the payment of principal and Interest; the method of execution; the form; provisions, if any, for the consolidation of debt authorized for several objects and purposes pursuant to one (I) or more ordinances Into one (1) consolidated issue; provisions, If any, for the receipt and deposit or Investment of any good faith deposit; provisions for the public or private sale of the bonds; and such other terms and conditions

as the county government may determine to be In the best Interest of the County. Debt

incurred by the County pursuant to this chapter may represented by uncertiflcated

obligations of the County which may be applicable to bonds and notes which are permitted to be Issued under this chapter, and the county government by resolution may determine, or It may delegate authority to the County Administrator to determine, all procedures appropriate to the establishment of a system of issuing uncertificated debt.

(1) Bonds Issued pursuant to this chapter may be sold at either public or private sale, upon such terms, conditions, and regulations as the county government may prescribe; provided, that the county government may authorize the County Administrator to sell such bonds at public or private sale upon such terms, conditions, and regulations as It may provide.

(1) The county government may pledge the full faith and credit of the County to secure the payment of the principal, Interest and premium, If any, on any debt Incurred pursuant to this chapter and/or may pledge any other security therefor. With respect to any debt to which the County's full faith and credit Is pledged, the authorizing ordinance and the debt instruments issued shall contain the declaration that the principal, Interest and premium, If any are to be paid by ad valorem taxes on all real property subject to taxation by the County without limitation as to rate or amount and that the full faith and credit of the County are pledged for payment. The county government shall annually levy and collect a
tax ad valorem upon all property taxable by the County sufficient to pay the principal of and Interest on each bond or note secured by the County's pledge of Its full faith and credit as such principal and interest become due; provided, however, such tax may be reduced by the amount of other moneys appropriated and actually available for such purpose or provided for by local or special assessments or local service taxes.

(1) The outstanding general obligation bonded Indebtedness of Sussex County secured by the full faith and credit of the County may not exceed twelve percent (127.) of the assessed valuation of all real property subject to taxation within the County. The outstanding
bonded indebtedness of the County not secured by the County's full faith and credit is without limitation as to amount.

(1) The proceeds from the sale of bonds and notes Issued under this chapter shall be
used only for the object or purpose or objects or purposes specified In the ordinance authorizing such bonds or notes for the payment of the principal of and interest on temporary loans made In anticipation of the sale of such bonds or notes. If for any reason
any part of such proceeds are not applied to or are not necessary for such purposes, such unexpended part of such proceeds shall be applied to the payment of the principal of or Interest on such bonds or notes no later than the earliest date on which such bonds or notes may be called for redemption without premium.

(1) All bonds, notes or other evidences of Indebtedness Issued pursuant to this chapter shall recite that they are issued for a purpose or purposes as specified in the authorizing ordinance or resolution and that they are Issued pursuant to the terms of the Constitution and laws of this State and the County. Upon the sale and delivery of any such bonds. notes or other evidences of Indebtedness against payment, such recitals shall be conclusive as to the right, power and authority of the County to issue the same and of the legaiity, validity and enforceability of the obligation of the County to pay principal and interest

on the same. In case any County official whose signature or a facsimile thereof shall

appear on any such bonds, notes or other evidences of indebtedness shall cease to be such officer before the delivery of such obligation, or in case the seal of the County which appears on any such obligation shall change before the delivery of such obligation, such signature, seal or facsimile thereof shall nevertheless be valid and sufficient for all purposes as if such officer had remained in office and as if such seal had not changed. The legality, validity and enforceability of such bonds, notes or other evidences of indebtedness shall never be questioned in any court of law or equity by the County or any person after the issuance, execution and delivery against payment for the same. All such bonds, notes and other evidences of indebtedness are hereby declared to have all the qualities and incidents of negotiable instruments under the Commercial Code of this State.

(9) Notwithstanding any limitations herein to the contrary, the county government may borrow in the anticipation of the collection of taxes or any other revenues budgeted for any purposes for which taxes are levied."

Approved July 7, 1988.