HOUSE BILL NO. 693
AN ACT TO AMEND THE CHARTER OF THE TOWN OF MILLSBORO, CHAPTER 457, VOLUME 60, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT TO REINCORPORATE THE TOWN OF MILLSBORO", TO AUTHORIZE THE ISSUANCE OF REVENUE BONDS.
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. Chapter 457, Volume 60, Laws of Delaware be and is hereby amended to add the following new Section 34A:
"POWER TO ISSUE REVENUE BONDS
Section 34A.(a) The Town Council, in addition to the power set forth in Section 34 of this Charter to borrow money and to issue bonds, shall have the authority to borrow money and issue bonds or certificates of indebtedness and to secure the payment thereof by pledging the revenues derived from the operation of any project for which bonds are issued pursuant to this Section.
(b) The funds derived from the sale of bonds issued pursuant to this Section may be used for the acquisition, construction, reconstruction, repair, alteration, improvement, extension, financing, or refinancing of any commercial, industrial, agricultural, educational or healthcare facility, and equipment therefor, to be operated by any for-profit or not-for-profit entity, including transaction costs, redemption premium, interest during construction and working capital for the project, provided that the issuance of such bonds pursuant to this Section shall not constitute a debt of the Town of Millsboro nor a pledge of its credit or taxing power and the bonds shall contain on the face thereof a statement to the following effect:
`Neither the faith and credit nor the taxing power of the Town of Millsboro is pledged to the payment of the principal of, premium, if any, or interest on this Bond, nor is the Town of Millsboro in any manner obligated to make any appropriation for payment thereof.'
The project to be funded with the proceeds of bonds issued under this Section may be accomplished by a loan of the bond proceeds from the Town to any for-profit or not-for-profit entity.
(c) All bonds issued pursuant to this Section shall be deemed to be legal investments by any bank, trust company, insurance company, executor, administrator, curator, trustee or any other fiduciary.
(d) The interest on any bonds issued pursuant to this Section shall be exempt from all taxation by the State of Delaware or by any political subdivision or agency thereof.
(e) There shall be no limitation on the amount of bonds to be issued pursuant to this Section and the indebtedness created by any bonds issued pursuant to this Section shall not be used in computing the maximum bonded indebtedness which may be created by the Town pursuant to Section 34 of this Charter nor shall the Town Council be required to levy taxes to pay the principal of or interest on any bonds issued pursuant to this Section.
(f) The bonds to be issued pursuant to this Section shall be authorized by resolution of the Town Council which shall determine that the issuance of such bonds shall be in the best interest of the citizens of the Town of Millsboro. The bond shall bear such date or dates, mature at such time or times not exceeding forty (40) years from their respective dates, bear interest at a rate or rates per annum, be in such denominations, be in such form either coupon or
registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America, at such place or places and be subject to such terms of redemption, as such resolution or resolutions may provide. Bonds of the Town of Millsboro issued by the Town Council pursuant to the provisions of this Section may be sold at either public or private sale at such place and interest rates as may be determined by the Town Council.
(g) Any resolution or resolutions authorizing any bonds securing any issue of bonds may contain provisions which shall be part of a contract with the holders of the bonds thereby authorized as to any matter relating to the repayment of the bonds, the security therefor, the operation of the project and any other matter or course of conduct that affect the foregoing.
(h) Neither the Mayor nor any member of the Town Council of the Town of Millsboro nor any person executing the bonds or other obligations shall be personally liable on the bonds or other obligations or be subject to any personal liability or accountability by reason of the issuance thereof.
() In the discretion of the Town Council, the bonds may be secured by a trust indenture by and between the Town of Millsboro and a corporate trustee which may be any trust company or bank having the powers of a trust company. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be determined by the Town Council."
Approved July 17, 1998