AN ACT TO AMEND CHAPTER 215, VOLUME 64, LAWS OF DELAWARE, ENTITLED AN ACT TO RE-INCORPORATE THE CITY OF HARRINGTON," AS AMENDED, RELATING TO THE POWER TO BORROW MONEY.
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. Amend Section 27, Chapter 215, Volume 64, Laws of Delaware, as amended, by striking Paragraphs A and B of Section 27 in their entirety and inserting in lieu thereof new Paragraphs A and B of Section 27 to read as follows:
A. Whenever during the year, the current receipts are insufficient to provide for the operating needs of the City, the Council is authorized to anticipate revenues by borrowing money, not in the excess of the sum of $500,004.00 dollars.
B. The Mayor and Council is hereby authorized to borrow money and issue bonds or certificates of indebtedness to secure the repayment thereof, on the full faith and credit of the City of Harrington for the payment of current operating expenses and existing obligations; for the purchase, erection, extension, enlargement or repair of any plant, machinery, appliances or equipment, for the supply or the manufacture and distribution of electricity, gas, light, heat or power purposes or the furnishing of water to the public, for the construction, repair or improvement of highways, streets or lanes, or paving, curbing or erection of gutters along the same, for the construction or repair of sewers, or sewerage disposable equipment or to defray the cost of the municipal improvement; provided, however, that the borrowing of the money therefore shall be authorized by the Town Council and approved in a manner hereafter designated. The borrowing of monies as specified herein, in an amount not to exceed Five Hundred Thousand Dollars ($500,000.00), shall require only the approval and authorization of the Council at two meetings, the second of which shall be held at least thirty days and not more than sixty days following the date of the first approval.
The aggregate of the amount so borrowed together with all other bonded indebtedness for which the faith and credit of the City of Harrington has been pledged shall not at any time exceed a sum equal to fifteen (15%) per cent of the total assessed value of real property situated within the bounds of the City of Harrington as such boundaries shall from to time appear.
With respect to any new borrowing under this Section 27 made after the effective date of this Act, same shall be repayable in full within five (5) years of the date of each such borrowing. Any sum or sums so borrowed shall be secured by a Promissory Note or Notes or other evidence of indebtedness of the City Council duly authorized by Resolution of the City Council and signed by the Mayor and attested by the Secretary of City Council with the City seal affixed. No Council member shall be liable for the payment of any such note or any other evidence of indebtedness because it is signed by him as a Council member, provided that he is so authorized by Resolution of the City Council. Such notes or evidences of indebtedness and the interest thereon shall be exempt from all taxation by the State of Delaware, it agencies and political subdivisions. Any sum(s) of monies borrowed on the full faith and credit of the City shall be paid from the general funds of the City."