CHAPTER 521
UNIVERSITY OF DELAWARE
AN ACT TO AMEND CHAPTER 51 OF THE DELAWARE CODE ENTITLED "UNIVERSITY OF DELAWARE" FOR THE PURPOSE OF GRANTING CONTINUING AUTHORITY TO ISSUE REVENUE BONDS FOR INCOME PRODUCING CAPITAL IMPROVEMENTS OF THE UNIVERSITY OF DELAWARE.
Be it enacted by the General Assembly of the State of Delaware (three-fourths of all Members elected to each House thereof concurring therein):
Section 1. That Chapter 51 of the Delaware Code be, and the same is hereby amended by adding three new sections thereto, which shall be numbered and designated as "SECTION 5115" to "SECTION 5117" inclusive as follows:
§ 5115. Authority to issue bonds
The Board of Trustees may provide by resolution, from time to time, for the issuance in the name of the University of Delaware of revenue bonds of the University, for the purpose of paying all or any part of the costs for income producing capital improvements including constructing and equipping income producing buildings and facilities together with incidental acquisition of land therefor, landscaping, walks, drives and utility installations deemed necessary by said Board for the sound expansion and development of the University. The principal and interest of such bonds shall be payable solely from University funds (other than State appropriated funds) specifically pledged in each case by said Board and no part of the revenues or funds of the University from other sources shall in any manner be expended for the purpose of defraying the costs thereof. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding four per centum per annum, payable semi-anually, shall mature at such time or times and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the Board of Trustees prior to the issuance of the bonds. The principal and interest of such bonds may be made payable in any lawful medium. The Board of Trustees shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof which may be at any bank or trust company within or without the State. The bonds shall be signed by the President of the Board of Trustees and the seal of the University or a facsimile thereof shall be affixed thereto and shall be attested by the Secretary of the Board of Trustees, and any coupons attached thereto shall bear the facsimile signature of the President of the Board of Trustees. In case any officer whose signature or a facsimile thereof shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All revenue bonds issued under the provisions of this chapter shall have, and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the Negotiable Instruments Law of this State. Such bonds and the income therefrom shall be exempt from all taxation by the State of Delaware or by any political subdivision, agency or authority thereof. The bonds may be issued in coupon or in registered form or both as the Board of Trustees may determine and provision may be made for the registration of any coupon bond as to principal alone and also as to both principal and interest, and for the reconversion of any bonds registered both as to principal and interest into coupon bonds. The Board of Trustees may sell such bonds either at public or private sale in such manner and for such price as it may determine to be for the best interests of the University, but no such sale shall be made at a price so low as to require the payment of interest on money received therefor at more than four per centum per annum, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values. The proceeds of such bonds shall be used solely for the payment of the cost of the specified capital improvements and shall be disbursed in the same manner as other University Funds. If the proceeds of the bonds of any issue shall exceed the amount required for the purpose for which
such bonds are issued, the surplus shall be held for application to the payment of principal and interest of such bonds. Prior to the preparation of definitive bonds, the Board of Trustees may, under line restrictions, issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter. The Board of Trustees may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost. Such revenue bonds may be issued without any other proceedings or the happening of any other conditions or things than those proceedings, conditions and things which are specified and required by this chapter.
§ 5116. Bonds as legal investments for Institutions and Fiduciaries
Bonds issued under the provisions of this chapter are made securities in which all State and municipal officers and administrative departments, boards, and commissions of the State, all banks, bankers, savings banks, trust companies, saving and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons whatsoever authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control ; and such bonds are made securities which may properly and legally be deposited with and received by any State, county or municipal officer or agency of the State for any purpose for which the deposit of bonds or other obligations of the State is authorized by law.
§ 5117. Credit of State not pledged
Revenue bonds issued under the provisions of this chapter shall be payable exclusively from specified funds of the University. All such bonds shall contain a statement on their face that The State of Delaware is not obligated to pay the same or the interest thereon and that the faith and credit of the State are not pledged to the payment of the principal or interest of
such bonds. The issuance of revenue bonds under the provisions of this chapter shall not directly or indirectly or contingently obligate the State to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.
Approved August 15, 1955.