SENATE BILL NO. 412
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 9 OF TITLE 3 OF THE DELAWARE CODE TO FURTHER DEFINE ALLOWABLE RESIDENTIAL USE OF LANDS LOCATED IN AGRICULTURAL PRESERVATION DISTRICTS AND TO ENABLE THE AGRICULTURAL PRESERVATION FOUNDATION TO MAKE INSTALLMENT PAYMENTS IN THE PURCHASE OF AGRICULTURAL PRESERVATION EASEMENTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 2. Amend §913, Chapter 9, Title 3, Delaware Code, by designating the existing language of the section as subsection (a) and adding a new subsection (b) to read as follows:
"(b) The Foundation shall be authorized to enter into installment purchase agreements and to execute all documents necessary or desirable thereto to qualify such agreements for exemption from federal or State taxation to the extent permitted by the tax laws. Pursuant to the installment purchase agreements, the Foundation shall acquire preservation easements, establish special accounts for each agreement from which principal and interest payments shall be made, and deposit into such special accounts amounts necessary to fund the agreements. The special accounts may be administered by a bank, escrow agent, or other qualified paying agent approved by the Foundation, and the deposited funds may only be invested in a manner approved by the Secretary of Finance. The amounts to be paid under an agreement shall not exceed the amounts available from the special account related thereto, including earnings thereon I he Foundation may under the terms of the agreement impose on the seller through direct charge or installment payment reduction the costs associated with the agreement and the special account. The Foundation is authorized to use all hinds appropriated to it 1-0 acquire preservation easements through installment purchase agreements."
Section 3. The Foundation shall be entitled, subject to the concurrence of the real property owners, to modify existing District Agreements and Preservation Easements to within, to the provisions of Section thereof.
Approved July 25, 1996