CHAPTER 156 - CLAYTON
AN ACT AUTHORIZING THE TOWN OF CLAYTON TO BORROW FORTY-ONE THOUSAND DOLLARS AND TO ISSUE BONDS THEREFOR, FOR THE PURPOSE OF REDEEMING AND REFUNDING CERTAIN OUTSTANDING BONDS OF THE TOWN OF CLAYTON.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each Branch of the Legislature concurring therein):
Section 1. That the Town of Clayton is hereby authorized and empowered to borrow on the faith and credit of the said Town of Clayton, a sum of money not exceeding Forty-one Thousand Dollars ($41,000.00) to be used for the purpose of redeeming and refunding the outstanding bonds together with accrued interest thereon of the said Town of Clayton.
Section 2. That the Town Council of the said Town of Clayton for the purpose set forth in Section 1 of this Act, shall have full power and authority to issue bonds of the said Town of Clayton to an amount not exceeding in the aggregate the sum of Forty-one Thousand Dollars ($41,000.00) to be known as the Town of Clayton Refunding Bonds, series of 1935.
Section 3. The said bonds shall be issued in such denominations as the said Town Council of the Town of Clayton may deem proper and shall be numbered consecutively, beginning with number one, and shall bear interest at a rate not exceeding four per centum per annum, payable on the first days of January and July in each and every year, at the Clayton Bank, at Clayton, Delaware; or such other depository as the Town Council shall designate, on the presentation of the coupons attached to said bonds, representing said semi-annual interest.
Section 4. Said bonds shall bear date on the first day of January or the first day of July in the year in which the same shall be issued, and the principal thereof shall be payable at the Clayton Bank at Clayton, or such other depository as the Town Council shall designate at the expiration of five years from their date. The said bonds or any of them, may be redeemed at the option of the said Town Council of the Town of Clayton at par and accrued interest, at any interest period after the expiration of two years from the date of said bonds, provided however, that if the Town Council, aforesaid, shall at any time after the expiration of two years from the date of said bonds elect to redeem any of said bonds, such redemption shall be made in pursuance of notice signed by the President of said Town Council, and by the Treasurer of said Town, published once a week for two consecutive weeks in a newspaper published in said Town of Clayton, if one, and in a newspaper published in the City of Wilmington, and a newspaper published in the Town of Smyrna. Such notice shall indicate the bonds called and such bonds shall be called according to their number beginning with the lowest number, and the interest on the bonds so called shall cease from the date named for payment thereof.
Section 5. The Town Council of the Town of Clayton shall direct and effect the preparation, printing and sale of said bonds authorized by this Ad at such time or times and on such terms as it may deem expedient, and all the moneys arising from said sale shall be applied to carrying into effect the provisions of this Act.
Section 6. The form of said bonds, with coupons thereto attached, shall be prescribed by the Town Council of the Town of Clayton and said bonds shall be signed by the President of the Town Council and by the Treasurer of said Town, and sealed with the corporate seal of said corporation, and shall be exempt from State, County and Municipal taxes. As said bonds and coupons thereto attached shall be paid the same shall be cancelled as the said Town Council shall direct.
Facsimile signatures of the President of the Town Council and of the Treasurer of the Town of Clayton may be imprinted upon the coupons attached to said bonds in lieu of the respective signatures of the said President of the Town Council and Treasurer of the Town of Clayton in their own original handwriting.
Section 7. The said Town Council of the Town of Clayton is hereby authorized and required to levy and raise by taxation in each year any sum of money that may be required to pay the interest accruing on said bonds or any of them, whilst any of said bonds remain unpaid. And the said Town Council is further authorized and required to levy and raise by taxation from time to time such sum or sums as said Town Council shall deem proper to establish a sinking fund adequate for the redemption of said bonds or any of them, at or before their maturity. Taxes for interest and sinking fund, as aforesaid, shall be levied and raised as taxes for general municipal purposes in the said Town are levied and raised and shall be in addition to the taxes raised for all or any other purposes.
Section 8. The Bonds authorized by this Act may be issued at one time or at different times, as the Town Council of the Town of Clayton shall determine, and the authority to issue and sell any bonds or number of bonds under this Act shall not be deemed to be exhausted until the aggregate of the amount of bonds issued under this Act shall be Forty-one Thousand Dollars.
Section 9. The faith and credit of the said Town of Clayton are hereby pledged for the payment of all of the bonds that may be issued under the provisions of this Act.
Section 10. A statement appearing in the bonds issued under the provisions of this Act to the effect that the bonds have been duly authorized, shall be deemed and held to be conclusive evidence in favor of the holder of any of such bonds, that all the terms and conditions of this Act have been fully met and complied with.
Approved March 11, 1935.