SENATE BILL NO. 266
AN ACT TO MAKE A SUPPLEMENTAL APPROPRIATION TO THE STATE TREASURER FOR THE FISCAL YEAR ENDING JUNE 30, 1996 TO DEFEASE AND/OR DEAUTHORIZE GENERAL OBLIGATION BONDS AT THE DIRECTION OF THE SECRETARY OF FINANCE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. The sum of forty-one million dollars ($41,000,000) is hereby appropriated to the State Treasurer, Debt Management (12-05-03) for Fiscal Year 1996 Defeasance and/or Deauthorization Bonds.
Section 2. The Secretary of Finance is hereby authorized on behalf of the State to apply funds herein appropriated to undertake a defeasance and/or a deauthorization of General Obligation Bonds issued or authorized but unissued by the State of Delaware. The funds appropriated hereby shall be applied (i) to the purchase of direct obligations of the U.S. Government, or other essentially risk-free securities to be deposited in trust to accomplish an in substance defeasance of said bonds in accordance with "Statement of Financial Accounting Standards No. 76, Extinguishment of Debt" which shall cause designated bonds to be deemed retired for the purposes of Section 7422 of Title 29, Delaware Code, (ii) to the transaction costs associated with accomplishing said defeasance, or (iii) to pay the costs of capital projects for which General Obligation Bonds are authorized but unissued. In the event that the Secretary of Finance elects to apply such funds to pay the costs of capital projects in lieu of issuing bonds, then and in that event, the authorization to issue such bonds shall be terminated. The Secretary of Finance is also authorized, pursuant to such procedures and subject to such terms and conditions as she/he shall deem in the best interest of the State, to acquire the aforesaid securities for deposit in trust, to identify the bonds of the State to be retired with the proceeds of the trust assets or the bonds to be deauthorized, to waive the right of the State to redeem any such identified bonds prior to their stated maturities, to select a financial institution to serve as trustee and to do all other things reasonably related to the retirement of bonds with the proceeds of this appropriation.
Section 3. This Act is a supplementary appropriation and the funds herein appropriated shall be paid to the State Treasurer from the General Fund of the State of Delaware from funds not otherwise appropriated.
Approved July 19, 1995