SENATE BILL NO. 46
AN ACT AUTHORIZING THE ISSUANCE OF OBLIGATIONS OF THE STATE OF DELAWARE TO FUND ADULT CORRECTIONAL FACILITIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (THREE QUARTERS OF ALL MEMBERS ELECTED TO EACH HOUSE THEREOF CONCURRING THEREIN):
Section 1. Authorization of Twenty Year Bonds. The State hereby
authorizes the issuance of up to Fifty Million Dollars ($50,000,000) of bonds to which the State shall pledge its full faith and credit, the proceeds of which shall be used, and are hereby appropriated, for the adult correctional facilities described in Chapters 440 and 441, Volume 67, Delaware Laws, including the costs of design and planning, acquisition, construction, equipping, interest during construction, credit enhancement and any other costs of the facilities or the issuance of the bonds or any temporary construction financing. The bonds shall mature in not more than twenty years from their date of issuance.
Section 2. Interim Construction Financing In anticipation of the
issuance of such bonds, the issuing officers may issue and sell temporary notes or other obligations of the State or may enter into a line of credit or similar arrangement with a financial institution to provide interim construction financing; in any case any such interim financing obligation to contain the pledge of the State's full faith and credit.
Section 3. Method and Terms of Sale. The bonds and other obligations
authorized by this Act shall be sold at public or private sale upon such terms and conditions as the issuing officers shall determine.
Section 4. Other Security Arrangements Permitted. In the discretion of
the issuing officers, in lieu of the State's full faith and credit, the bonds and other obligations authorized by this Act may be issued without the pledge of the State's full faith and credit and may instead be secured by a pledge of annual appropriations and/or by a mortgage on or other security interest in the facilities financed.
Section 5. Obligations not subject to 75% Rule. The bonds and other
obligations authorized by this Act shall not be subject to, and shall not be counted against, the authorization limit contained in Title 29 Delaware Code Section 7423.
Section 6. Effective Date. This Act shall become effective upon its
adoption in accordance with law.
Approved February 11, 1991.