CHAPTER 157 - CITIES AND TOWNS—BRIDGEVILLE
AN ACT AUTHORIZING THE COMMISSIONERS OF BRIDGEVILLE TO REFUND A CERTAIN PART OF THE DEBT OF THE SAID COMMISSIONERS OF BRIDGEVILLE, BEING THE BONDS ISSUED FOR THE PURPOSE OF ERECTING WATER WORKS AND FURNISHING WATER AND FOR CONSTRUCTING A SEWER SYSTEM FOR THE DRAINAGE OF SAID TOWN AND FOR PRIVATE USE.
WHEREAS, by act of the General Assembly of the State of Delaware approved March 12, A. D. 1909, being Chapter 195 of Volume 25, Laws of Delaware, the Commissioners of Bridgeville were authorized and empowered to borrow upon the faith and credit of said town the sum of Twenty-five Thousand ($25,000.00) Dollars to be expended for the purpose of erecting a water works and supplying water and constructing a sewer system for the drainage of said town and for private use and for the purpose of securing the payment of such sum to issue bonds of the Town of Bridgeville of such denomination as the Commissioners of Bridgeville should deem best and bearing a rate of interest not exceeding five per centum; and,
WHEREAS, the said Commissioners of Bridgeville, in pursuance of said act issued said bonds in the sum of Twenty-five Thousand ($25,000.00) Dollars; and,
WHEREAS, there is now an indebtedness represented by outstanding bonds amounting to the sum of Twenty Thousand ($20,000.00) Dollars; and,
WHEREAS, it is now the intent and purpose of this act that the said indebtedness represented by said outstanding bonds amounting to the sum of Twenty Thousand ($20,000.00) Dollars be refunded at a lower rate of interest. NOW, THEREFORE,
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 thereof concurring therein):
Section 1. That the Commissioners of Bridgeville, a municipal corporation of the State of Delaware, be and they are hereby authorized, fully empowered and directed, to borrow upon the faith and credit of the said Town of Bridgeville the sum of Twenty Thousand ($20,000.00) Dollars for the purpose of paying, refunding and redeeming all outstanding bonds issued under authority of Chapter 195 of Volume 25, Laws of Delaware, the said bonds so to be issued to be known as "Bridgeville Water and Sewer Refunding Bonds".
Section 2. That the said bonds shall be of such denomination as the Commissioners of Bridgeville shall hereafter determine and shall bear interest at such rate not exceeding three and one-half per centum per annum, as the Commissioners of Bridgeville shall determine. The interest upon the said bonds shall be payable semi-annually on the first day of July and January respectively in each and every year from the date of issue appearing thereon at such bank or trust company in Sussex County, Delaware, as the Commissioners of Bridgeville may designate.
The principal of said bonds shall be made payable at such times and in such manner as the Commissioners of Bridgeville may hereafter designate, including the right or privilege of having serial maturities, the said Commissioners of Bridgeville, however, reserving the right and authority to redeem said bonds or any part of them at such time or times from the date of issue and in such manner as said Commissioners may hereafter provide. Such election, however, shall be effected on a day on which the semi-annual interest shall be due and in pursuance of a notice to that effect published by the said Commissioners of Bridgeville in at least two newspapers, one of which shall be in Sussex County, at least thirty days prior to the date on which said bond or bonds is or are to be redeemed. In calling said bonds for redemption and payment, they shall be called by either lot or number and the interest on said bond or bonds so called in and redeemed shall cease from the date fixed in the said notice for the redemption thereof and the said bonds, when paid, shall be cancelled. If at any time after the issue of said bonds and before they shall be payable or called in and redeemed, as herein provided, any holder or holders of any such bond or bonds shall offer the same for redemption, the said Commissioners of Bridgeville, if they shall deem it expedient so to do, may redeem or pay the bond or bonds so offered and cancel the same, the interest on said bond or bonds so redeemed and cancelled to cease from the date of such redemption.
Section 3. That the said bonds shall recite that they are issued for the purpose set forth in Section 1 of this Act and that they are issued in pursuance of this act and such recital shall be conclusive evidence of the authority of the Commissioners of Bridgeville to issue said bonds and their validity. Any such bonds containing such recital shall, in any suit, action or proceeding, in law or equity involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, executed and delivered in conformity herewith and shall be incontestable for any cause. The said bonds may be issued notwithstanding that any of the officers signing them, or whose facsimile signature appears on any coupons, if coupons are issued, shall have ceased to hold office at the time of such issue or at the time of the delivery of said bonds.
Section 4. That the said Commissioners of Bridgeville shall direct and effect the preparation and printing of the bonds authorized by this Act and shall also prescribe the form thereof, which shall be signed by the President of the Commissioners of Bridgeville and counter-signed by the Secretary of said Commissioners, and shall be sealed with the corporate seal of said Commissioners. Said bonds shall be exempt from all State, county and municipal taxation. Each of said bonds may or may not, as the Commissioners, of Bridgeville shall hereafter determine, contain coupons providing for the payment of the interest thereon as said interest shall become due. Said bonds and any coupons thereon, as the same shall be paid shall be cancelled in such manner as the said Commissioners of Bridgeville shall hereafter direct.
Section 5. That the said bonds shall be sold as soon as reasonably possible after the approval of this act. It shall be the duty of the Commissioners of Bridgeville to negotiate the sale and delivery of said bonds in such manner as they shall determine for the best interests of the Town of Bridgeville and the Commissioners of Bridgeville shall have the right to reject any and all bids which may be offered for said bonds if in their judgment such bid or bids shall be deemed insufficient. The Commissioners of Bridgeville may sell or dispose of said bonds at private sale for the best price obtainable therefor, provided said price shall not be less than par and accrued interest.
Section 6. That the said Commissioners of Bridgeville shall annually provide for the sum equal to the amount of interest due each year upon said bonds and all the expenses of properly keeping up and operating the said water works and sewer system which the rents and revenues derived therefrom may be inadequate to meet, and, as and when the said Commissioners of Bridgeville shall see fit to call any or all of said bonds under Section 2 hereof, shall in like manner provide for a sum sufficient for the payment or redemption of such bonds in addition to the amount necessary to pay the interest thereon. The said Commissioners of Bridgeville are further hereby authorized and empowered to assess and collect annually a tax and/or sewer assessment for the purpose of establishing a sinking fund adequate for the redemption at and before maturity of the bonds issued under the provisions of this act. The principal and interest of said bonds shall be deposited in any bank or trust company in Sussex County, or may be invested by the Commissioners of Bridgeville until such time as it may be needed for the redemption of said bonds and on such security as shall be approved by the said Commissioners of Bridgeville.
Section 7. The faith and credit of the Town of Bridgeville are hereby expressly pledged for the payment of the bonds authorized to be issued under the provisions of this act, together with all interest thereon.
Approved April 14, 1941.