Delaware General Assembly







Section 1. Amend Title 14, Delaware Code, by establishing a new Chapter 92, which new Chapter shall read as follows:


§9201. Declaration of Purpose

(A) The General Assembly makes the following findings:

(1) For the benefit of the people of the State of Delaware, the conduct and increase of their commerce, the protection and enhancement of their welfare, the development of continued prosperity and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the fullest opportunity to learn and to develop their intellectual and mental capacities and skills;

(2) To achieve these ends it is of the utmost importance that students attending institutions of higher education located in the State have reasonable financial alternatives to enhance their access to such institutions;

(3) Reasonable financial access to institutions of higher education will assist such youth in achieving the optimum levels of learning and development of their intellectual and mental capaci ties and skills;

(4) There exists a serious problem in this State regarding the ability of students to obtain financing for the cost of education beyond the high school level;

(5) Escalating costs of securing such an education have contributed to the difficulties faced by students in attempting to finance an education;

(6) Without the public action contemplated by this Chapter, many students; will be forced to postpone or abandon plans for obtaining additional education;

(7) It is in the interests and welfare of the citizens of the State to provide a means for assisting students to continue their education; and

(8) It is necessary to create a Higher Education Supplemental Loan Authority to encourage the investment of private capital in the provision of funds for the financing of student loans.

(B) The General Assembly declares its legislative purpose to:

(1) Provide a measure of assistance and an alternative method to enable students and the families of students attending institutions of higher education located in the State appropriately and prudently to finance the cost or a portion of the cost of such higher education;

(2) To supplement Federal Guaranteed Higher Education Loan Programs, other student loan programs, and grant or scholarship programs to provide the needed additional options for the financing of a student's higher education in execution of the public policy recited herein; and

(3) Cause the establishment of the Authority for the benefit of the people of the State, for the improvement of their education, health and welfare, and for the promotion of the economy.

powers and duties conferred upon it and this Chapter shall be liberally construed to effect its purposes,

§9202. Definitions

(A) Unless the context clearly requires otherwise, in this Chapter the following words have the meanings indicated:

(B) 'Authority' means the Delaware Higher Education Supplemental Loan Authority.

(C) 'Authority Loans' means loans by the Authority to institutions of higher education for the purpose of funding education loans.

(D) 'Bonds' means bonds, notes, or other evidences of obligation of the Authority issued under this Chapter including, without limitation, bond or revenue anticipation notes, notes in the nature of commercial paper, and refunding bonds.

(E) 'Bond Resolution' means the resolution or resolutions of the authority and the trust agreement, if any, authorizing the issuance of and providing for the terms and conditions applicable to bonds.

(F) 'Borrower' means a student who has received an education loan or any parent who has received or agreed to pay an education loan.

(G) 'Cost of Attendance' means the tuition and fees applicable to a student, together with the institution's estimate of other expenses reasonably related to cost of attendance at that institution including, without limitation, the cost of room and board, transportation, books and supplies.

(H) 'Default Insurance' means insurance insuring education loans, authority loans, or bonds against default.

(I) 'Default Reserve Fund' means a fund established under a bond resolution for the purpose of securing education loans, authority loans, or bonds.

(J) 'Education Loan' means a loan which is made by an institution to a student or to parents of a student, or both, in amounts not in excess of the maximum amounts specified by the Authority to finance a part or all of the cost of the student's attendance at that institution.

(K) 'Education Loan Series Portfolio' means all education loans made by a specific Institution which are funded from the proceeds of an Authority Loan to the institution of higher education out of the proceeds of a related specific bond issue through the Authority.

(L) 'Institution' means any public or private nonprofit educational institution situated within this State which:

(1) Provides a program of education beyond the high school level;

(2) Awards an Associate's, Bachelor's, or Advanced Degree;

(3) Is accredited by the Commission on Higher Education of the Middle States Association of Colleges and Schools or by a nation& accrediting association or group recognized by the Council on Postsecondary Accreditation.

(M) 'Loan Funding Deposit' means moneys or other property deposited by an institution with the Authority or a trustee, in amounts the Authority determines necessary as a condition for an institution's participation in the Authority's programs to

(1) Provide security for bonds;

(2) Fund a Default Reserve Fund;

(3) Acquire default insurance; or

(4) Defray costs of the Authority.

(N) 'Parent' means any parent or guardian of a student at an institution of higher education.

§9203. Authority Established; Memership; Appointment; Qualifications

(A) There is hereby established the Delaware Higher Education Supplemental Loan Authority. The Authority is constituted a public instrumentality and the exercise by the Authority of the powers conferred by this Chapter is the performance of an essential public function. The Authority

shall consist of nine (9) members appointed by the Governor. Each member shall be a resident of the State of Delaware.

(1) Two (2) members shall be trustees, directors, officers, or employees of institutions of higher education, at least one (1) of whom is from an institution not owned or operated by the State.

(2) Two (2) members shall have had the experience in the field of state and municipal finance, either as a partner, officer, or employee of an investment banking firm which originates and purchases state and municipal securities, or as an officer or employee of an insurance company or bank whose duties relate to the purchase of state and municipal securities as an investment and to the management and control of a state and municipal securities portfolio, and who are not trustees, directors, officers or employees of an institution of higher education.

(3) One (1) member shall have had experience in higher education finance.

(4) Two (2) members shall have had experience with student financial aid.

(5) One (1) member shall be the State Treasurer, Ex-Officio, or his designee.

(6) One (1) member shall be the Secretary of Finance, Ex-Officio, or his designee.

(7) Two (2) members shall be appointed from the public at large.

(B) (1) Of the members of the Authority first appointed, three (3) shall serve for terms expiring on June 30, 1983, 1984, and 1985, respectively, and until a successor is appointed and qualifies. On the expiration of the term of any member a successor shall be appointed for a term of three (3) years and serve until a successor is appointed and qualifies.

(2) The Governor shall appoint a qualified person to fill any vacancy.

(3) A member appointed to fill a vacancy in an unexpired term serves only for the remainder of that term and until a successor is appointed and qualifies.

(4) Any member may be removed by the Governor for misfeasance, malfeasance or willful neglect of duty or other cause after notice.

(C) (1) Each year the Authority shall elect from among its members:

(I) A Chair;

(II) A Vice-Chair; and

GIB Any other officers it requires.

(2) Each member of the Authority:

(I) Serves without compensation; and

(II) Is entitled to reimbursement for expenses in accordance with the standard state travel regulations.

§9204. Officers; Quorum; Bonds; Not State Debt

(A) (1) The Authority may appoint an Executive Director and a General Counsel, and any other officers, none of whom may be members of the Authority.

(2) The Executive Director shall:

(I) Serve at the pleasure of the Authority; and

(II) Receive compensation as fixed by the Authority.

(3) The Executive Director or other person designated by resolution of the Authority:

(I) Shall keep a record of the proceedings of the Authority;

(II) Shall be custodian of all books, documents and papers flied with the Authority, the minute book or Journal of the Authority, and its official seal; and

(I) May cause copies to be made of all minutes and other records and documents of

the Authority and may give certificates under the official seal of the Authority to the effect that the copies are true copies, and all persons dealing with the Authority may rely upon the certificates.

(B) (1) Six (6) members of the Authority shall constitute a quorum.

(2) The affirmative vote of a majority of the members present, and not less than five (5) votes, is necessary for any action taken by the Authority.

(C) (1) A vacancy in the membership of the Authority may not Impair the right of a quorum to exercise all the rights and perform all the duties of the Authority.

(2) Any action taken by the Authority under this Chapter may be authorized by Resolution at any regular or speical meeting and may take effect immediately and need not be published.

(D) (1) The Authority may issue bonds for the purpose of making Authority loans to institutions participating in a program of the Authority for the purpose of providing education loans.

(2) Bonds issued under this Section shall be obligations of the Delaware Higher Education Supplemental Loan Authority only, and not of the State of Delaware. The Authority may not offer Bonds for sale, nor issue any Bonds, to which it has pledged the moral obligation of the State of Delaware.

(E) (1) Bonds issued under this Chapter shall state on the face of each bond that they represent and constitute an obligation of the Authority only, and do not constitute either a debt of the State of Delaware within the meaning of the provisions of the Constitution or laws of the State of Delaware or a pledge of the faith and credit of the State of Delaware.

(2) The bonds may not grant to the owners or holders any right to have the Authority or the General Assembly levy any taxes or appropriate any funds for the payment of principal or interest.

§9205. Powers and Functions of the Authority

(A) (1) In addition to any other powers granted or duties imposed upon it, the Authority has the powers and duties set forth in this Section.

(2) The Authority shall adopt any rule or regulation necessary to carry out its powers and duties.

(B) The Authority may:

(1) Adopt an official seal;

(2) Maintain an office at the place or places it may designate;

(3) Participate in legal proceedings in the name of the Authority; and

(4) Sue and be sued in its own name, plead and be impleaded.

(C) The Authority, in consultation with the institutions, shall establish criteria for and guidelines encompassing the types of and qualifications for education loan financing programs which shall include those eligibility standards for borrowers that the Authority determines may be necesary or desireable to effectuate the purposes of this Chapter and which shall Include provisions that each student have a certificate of admission or enrollment at a specific participating institution, that each student or student's parents satisfy the financial qualifications that the Authority establishes and that each student and each student's parent submit to the participating institution information that may be required by the Authority.

(D) The Authority shall contract with financial institutions and other qualified loan origination and servicing organizations to provide assistance in prequalifying borrowers for education loans and for servicing and administering education loans and any participating institution's respective loan series portfolio. Any education loan fee may include a portion to cover the cost of any servicing organization's assistance prorated on a basis deemed fair by the Authority.

(E) To insure the marketability of its bonds and the adequacy of the security for the payment of the principal of and interest on its bonds, the Authority shall establish criteria governing.

(1) The eligibility of institutions to participate in its program;

(2) The making of Authority loans and education loans;

(3) Provisions for default;

(4) The establishment of default reserve funds;

(5) The purchase of default insurance; and

(6) Provision for the establishment of prudent debt service reserves and for the furnishing by participating Institutions of such additional guarantees of or other security for education loans, Authority loans, or the Authority's bonds.

(F) The Authority shall establish limitations on the principal amounts and the terms of education loans, criteria regarding the qualifications and characteristics of borrowers and procedures for allocating Authority loans among participating institutions.

(G) The Authority may:

(1) Issue bonds for any of its corporate purposes and borrow funds as working capital for its operations;

(2) Fix, revise, charge and collect rates, fees and charges for the services furnished or to be furnished by the Authority and contract with any person, including financial institutions, loan originators, servicers, administrators, issuers of letters of credit, and insurers;

(3) Employ consultants, attorneys, accountants, financial experts, loan processors, bankers, managers, and other employees and agents as may be necessary in its judgment, and fix their compensation;

(4) Establish regulations, criteria or guidelines with respect to Authority loans, education loans, and education loan series portfolios;

(5) Receive and accept from any source an in any form, loans, appropriations, contributions, gifts, or grants for or in aid of any Authority purpose or education loan financing program and, when required, use the funds, property or labor only for the purposes for which It was provided;

(6) Make Authority loans to institutions and require that the proceeds of the loans be used for making education loans and paying related loan costs and fees;

(7) Charge to and apportion among participating institutions its administrative and operating costs and expenses incurred in the exercise of its powers and duties; and

(8) Do all acts and things necessary or convenient to carry out its corporate purposes and In such manner and upon such procedure as the authority may in its discretion from time to time determine or prescribe.

(H) Notwithstanding any other provision contained in this Chapter, the Authority may commingle and pledge as security for a series or issue of bonds, with the consent of all of the institutions which are participating in the series or issue:

(1) The education loan series portfolios and some or all future education loan series portfolios of the Institutions; and

(2) The loan funding deposits of the institutions if education loan series portfolios and other security and moneys set aside in any fund or funds pledged for any series or issue of bonds are held for the sole benefit of the series or issue separate and apart from education loan series portfolios and other security and moneys pledged for any other series or issue of bonds of the Authority.

(I) The Authority shall:

(1) Examine records and financial reports of participating institutions; and

(2) Examine records and financial reports of any contractor organization or financial institution retained by the Authority.

(J) The Authority shall require that:

(1) Authority loans be used solely to make education loans;

(2) Institutions require each borrower under an education loan use the proceeds solely for the cost of attendance; and

(3) Each borrower certify that proceeds shall be used solely for the cost of attendance.

§9206. Refunding Bond Proceeds and Expenses

(A) Whenever refunding bonds are issued to refund bonds, the proceeds of which were used to make Authority loans, the Authority may reduce the amount it is owed by the institutions which had received Authority loans from the proceeds of the refunded bonds.

(B) The institutions may use this reduced amount to reduce the amount of interest being paid on education loans which the institutions had made pursuant to the Authority loans from the proceeds of the refunded bonds.

(C) All expenses incurred in carrying out the provisions of this Section shall be payable solely from funds provided under the Authority of this Section and, except as otherwise provided, no liability shall be incurred by the Authority beyond the extent to which moneys shall have been provided under this Section.

§9207. Loan Fund n Deposits

(A) (1) The Authority shall establish guidelines relating to:

(I) The deposits of certain moneys, endowments, or properties by institutions so as to provide reasonable security for education loan funding programs, Authority loans, education loans, or for bonds; and

(II) Guaranteees of or contracts to purchase education loans or bonds by the institutions or by financial institutions or others.

(2) A Default Reserve Fund may be established for any series or issue of bonds.

(B) (1) The Authority may receive moneys, endowments, properties, and guarantees as it determines appropriate and, if necessary, take title in the name of the Authority or in the name of a participating institution or a trustee.

(2) When the principal of and interest on bonds of the Authority issued to finance the cost of any education loan financing program or programs, including any refunding bonds issued to refund or refinance any bonds, have been fully paid and retired or when adequate provision has been made to fully pay and retire the bonds, and all other conditions of the bond resolution authorizing the bonds have been satisfied and the lien created by the bond resolution has been released, the Authority shall promptly do the things and execute the deeds and conveyances necessary and required to convey any remaining moneys, properties, and other assets comprising loan funding deposits to the participating institutions in proportion to the amounts furnished by the respective institutions.

§9208. Bonds

(A) (1) The Authority shall at any time and from time to time issue bonds for any corporate purpose.

(2) The bonds of each issue shall be payable solely out of revenues of the Authority, including, without limitation:

(I) Prinicipal and Interest on Authority loans and education loans;

(II) Payments by institutions, banks, insurance companies, or others pursuant to letters of credit or purchase agreements;

(III) investment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement;

(IV) insurance proceeds;

(V) Loan funding deposits;

(VI) Proceeds of sales of education loans;

(VII) Proceeds of refunding bonds; and

(VIII) Other fees, charges, or revenues of the Authority.

(3) Bonds shall be authorized by a bond resolution of the Authority and shall:

(I) Bear the date or dates, and mature at a time or times whether as serial bonds or as term bonds or both, not exceeding the year following the last year in which the final payments in an education loan series portfolio are due, or 30 years from their respective dates of issue, whichever is sooner;

(II) Bear interest at a rate or rates determined by the Authority;

(I) Be payable at a time or times, in the denominations and form, either coupon or registered or both, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the Authority may establish;

(IV) Be deemed a 'security' within the meaning of Article 8, Section 8-102 of the Uniform Commercial Code, whether or not it is either one of a class or series or by its terms is divisible into a class or series of Instruments and negotiable for all purposes although payable from a limited source, notwithstanding any other law;

(V) Be payable in lawful money of the United States at a designated place;

(VI) Be subject to the terms of redemption that the bond resolution provides;

(I) Be executed by the manual or facsimile signatures of the officers of the Authority designated by the Authority; and

(I) Be sold in the manner and upon the terms determined by the Authority Including privated (negotiated) sale.

(4) Pending preparation of the definitive bonds, the Authority may issue interim receipts or cerificates which shall be exchanged for such definitive bonds.

(B) Any bond resolution may contain provisions, which shall be a part of the contract with the holders of the bonds to be authorized, as to:

(1) Pledging or assigning the revenues derived from the Authority loans and education loans with respect to which such bonds are to be Issued;

(2) The fees and other charges to be collected and the sums to be raised in each year thereby, and the use, investment, and disposition of such sums;

(3) The setting aside of loan funding deposits, debt service reserves, capitalized Interest accounts, cost of Issuance accounts and sinking funds, and the regulation, Investment, and dispostion thereof;

(4) Limitations on the use of the education loans;

(5) Limitations on the purpose to which or the Investments in which the proceeds of sale of any Issue of bonds then or thereafter to be Issued may be applied;

(6) Limitations on the Issuance of additional bonds, the terms upon which additional bonds may be issued and secured, the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds;

(7) The refunding or refinancing of outstanding bonds;

(8) The procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given;

(9) Defining the acts or omissions which shall constitute a default in the duties of the Authority to holders of Its obligations and providing the rights or remedies of such holders in the event of a default;

(10) Providing for guarantees, pledges of endowments, letters of credit, property or other security, or Insurance for the benefit of the holders of the bonds; and

(11) Any other matter relating to the bonds which the Authority determines appropriate.

(C) No member of the Authority nor any person executing the bonds shall be liable personally on the bonds or subject to any personal liability by reason of the issuance of the bonds.

(D) (1) The Authority may purchase its bonds out of any available funds and may hold, pledge, cancel, or resell the bonds subject to and In accordance with agreements with bondholders.

(2) The Authority may refund or refinance any of its bonds.

§9209. Trust Agreement

(A) (I) Any bonds issued under the provisions of this Chapter may be secured by a trust agreement by and between the Authority, a participating institution, and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State.

(2) Any trust agreement or bond resolution may:

(I) Pledge or assign any revenues to be received by the Authority or proceeds or benefits of any contract and may serve to convey or mortgage or otherwise secure any property or property rights;

(I) Contain provisions for protecting and enforcing the rights and remedies of bondholders;

(I) Restrict the individual right of action by bondholders; and

(I) Contain such other provisions as the Authority deems appropriate.

(3) Any expense incurred in carrying out the provisions of the trust agreement may be treated as a part of the cost of the operation of an education loan program.

§9210. Rates and Fees; Pledge

(A) (1) The Authority shall fix, revise, charge, and collect fees and charges for its services and operations and may contract with any person in connection therewith without supervision or regulation by any unit of state government.

(2) Any agreement entered into by the Authority with an institution shall provide that the fees and other amounts payable by the institution with respect to any program of the Authority shall be sufficient at all times:

(I) To pay its share of the administrative costs and expenses of the Authority;

(II) To pay when due the principal of and the interest on its share of outstanding bonds of the Authority issued in respect of the program and the redemption price or purchase price of any bonds to be retired by call or purchase, to the extent that other revenues of the Authority pledged for the payment of the bonds may not be sufficient for that purpose;

(III) To create and maintain reserves which may, but need not be, required or provided for in a bond resolution; and

(I) To establish and maintain whatever education loan servicing, control, or adult procedures are appropriate to the prudent operations of the Authority.

(B) (1) A plege by the Authority of revenues as security for an issue of bonds shall be valid and binding from the time when the pledge Is made.

(2) The revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of nny kind in tort, contract or otherwise against the Authority or any participating institution, irrespective of whether the person has notice.

(3) No bond resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by the Authority need be filed or recorded in any public record other than the records of the Authority in order to perfect the lien against third persons, regardless of any contrary provision of public law.

(C) (1) All moneys received by or on behalf of the Authority under this Chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to he held and applied solely as provided in this Chapter.

(2) Any officer with whom, or any bank or trust company with which, such moneys are deposited shall act as trustee of the moneys and shall hold and apply them for the purposes provided in the Chapter arid any applicable bond resolution or trust agreement.

§9211. Enforcement of Rights and Duties

Except to the extent that their rights are restricted by any applicable bond resolution or trust agreement, any holder of bonds issued under this Chapter or a trustee under a trust ageement entered into under this Chapter may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws of Delaware or by any applicable bond resolution or trust agreement.

§9212. Refunding Bonds

(A) (1) The Authority may issue bonds to refund any bonds of the Authority then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may he issued in one or more series in an amount in excess of that of the bonds to be refunded.

(2) The proceeds of any bonds issued for the purpose of refunding outstanding bonds may be applied to the purchase or retirement at maturity or redemption of outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on a date determined by the Authority.

(B) (1) Any escrowed proceeds, pending use, may be invested and reinvested in direct obligations of the United States of America, maturing at a time or times appropriate to assure the prompt payment of the principal of and interest and redemption premium, if any, on the outstanding bonds to be refunded.

(2) The interest, income and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds to be refunded.

(3) After the terms of the escrow have been fully satisfied and carried out, any balance of proceeds and interest, income and profits, if any, earned or realized on the investments shall be returned to the institution for use by it in any lawful manner.

(C) Refunding bonds shall be subject to this Chapter in the same manner and to the same extent as other bonds issued under this Chapter.

§9213. Investments

(A) Except as otherwise provided in this Chapter, the Authority may invest funds in:

(1) Direct obligations of the United States;

(2) Obligations as to which the timely payment of principal and interest is fully guaranteed by the United States;

(3) Obligations of the federal intermediate credit banks, federal banks for cooperatives, federal land banks, federal home loan banks, federal national mortgage association, and the government national mortgage association;

(4) Certificates of deposit or time deposits constituting direct obligations of any bank as defined by the laws of this State. However, investments may be made only in those certificates of deposit or time deposits in banks which arc insured by the Federal Deposit Insurance Corporation or Its successor if then In existence; and

(5) In withdrawable capital accounts or deposits of state or federal chartered savings and loan associations which arc insured by the Federal Savings and Loan Insurance Corporation.

(B) Securities may be purchased at such time mid at such prices as the Authority determines. §9214. Bonds as Legal Investments

All banks, bankers, trust companies, savings bank and institutions, building, savings and loan associations, investment companies, insurance companies and associations, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds issued under this Chapter.

§9215. Accounts and Reports

(A) The Authority shell keep full and accurate accounts of its activities and operations and shall annually in the month of January make a report to the Governor, the Controller General, The Speaker of the House of Representatives, the President Pro 'I'empore of the Senate, and the Secretary of Finance.

(B) The report shall cover the preceding fiscal year and shall include a complete operating and financial statement for that year and a summary of the residences of the recipients of education loans. The Authority shall cause an audit of its books and accounts to be made at least once each year by independent certified public accountants, and the cost thereof shall be paid by the Authority from funds available to it pursuant to this Chapter.

§9216. Chapter Additional and Supplemental

(A) This Chapter provides a complete, additional, and alternative method for the doing of the things authorized and shall be regarded as supplemental and additional to, and the limitations imposed by this Chapter do not limit or otherwise affect powers or rights conferred by, other laws, and the issuance of bonds and refunding bonds under this Chapter need not comply with the requirements of any other law applicable to the issuance of bonds.

(B) (1) Notwithstanding any other provision of law or Charter, institutions may borrow money from the Authority, make education loans and take all other actions and do those things necessary or convenient to consummate the transactions contemplated under this Chapter.

(2) The Authority may establish, contract for, charge and collect any amount or rate of interest or compensation with respect to Authority loans and participating institutions may contract for, charge, and collect any amount or rate of interest or compensation with respect to education loans.

§9217. Tax Exemption

The Authority shall not be required to pay any taxes or assessments of any kind whatsoever and its bond, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies of any kind.

§9218. Termination of Existence of Authority

The Authority in its corporate existence shall continue until terminated by law but no law terminating its existence shall take effect as long as any bonds of the Authority are outstanding and unpaid without adequate provision for payment having been made. Upon termination of Its existence, all rights, privileges, and property of the Authority shall pass to and be vested in the State of Delaware."

Section 2. This Act shall take effect July 1, 1982.

Approved July 8, 1982.