AN ACT TO AUTHORIZE MAYOR AND COUNCIL OF LAUREL TO BORROW NOT EXCEEDING ONE HUNDRED AND FIVE THOUSAND AND FIVE HUNDRED DOLLARS, AND TO ISSUE BONDS TO SECURE THE PAYMENT THEREOF, FOR THE PURPOSE OF PAYING, REDEEMING AND REFUNDING CERTAIN OUTSTANDING BONDS OF THE TOWN OF LAUREL.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of each branch of the Legislature concurring therein):
Section 1. Mayor and Council of Laurel, a municipal corporation created by and existing under the laws of the State of Delaware, is authorized and empowered to borrow on the faith and credit of the municipality a sum of money not exceeding One Hundred and Five Thousand and Five Hundred Dollars ($105,500.00) for the purpose of redeeming and refunding certain outstanding bonds of the Town of Laurel.
Section 2. All bonds issued hereunder shall be known as "Town of Laurel Refunding Bonds, Series of (adding the name of the year in which they shall be issued). The bonds shall bear date the first day of January or the first day of July in the year of issuance, and each series of bonds shall be numbered consecutively beginning with number one. The bonds shall bear interest at a rate not exceeding four percentum per annum, and may or may not be coupon bonds. Interest on the bonds shall be payable on the first day of January and the first day of July in each year, and principal of the bonds and interest thereon shall be payable at such bank or trust company in the Town of Laurel as Mayor and Council of Laurel may select.
Section 3. Each series of bonds, or any of them, may be made redeemable at the option of Mayor and Council of Laurel at par and accrued interest at any interest paying date after
five years from the date of the series, provided, however, that if Mayor and Council of Laurel shall elect to redeem any of the bonds, notice signed by the President of the Town Council, attested by the Town Clerk, shall be published once each week for two consecutive weeks in a newspaper published in the Town of Laurel, or wanting such newspaper, then in a newspaper published in Sussex County. The notice shall designate the bonds called, and they shall be called in numerical order beginning always with the lowest number. Interest on bonds so called shall cease from the date named for the payment thereof.
Section 4. Mayor and Council of Laurel, by resolution or ordinance, is authorized and empowered to determine the form of bonds and coupons that may be attached thereto, the maturity or maturities, the date or dates, redemption options, rate or rates of interest, place or places of payment, and all other matters and things pertaining thereto except as are herein expressly provided.
Section 5. Mayor and Council of Laurel shall direct and effect the preparation, printing and sale of the bonds and coupons that may be attached thereto. The bonds may be sold through private negotiation at such times and on such terms as may be deemed proper, or by means of advertisement in the public press soliciting sealed bids therefor, and Mayor and Council of Laurel may determine the form of advertisement and how and where made, and all matters incidental thereto, and shall award and sell the bonds to the best responsible bidder, provided, however, that it may reject any and all bids or offers therefor.
Section 6. All money derived from the sale of bonds authorized hereunder shall be applied to the payment or redemption of bonds of the Town of Laurel now issued and outstanding and to no other use or purpose.
Section 7. All bonds issued hereunder shall be signed by the President of the Town Council, and by the Town Clerk, and the corporate seal of the municipality shall be impressed thereon. Facsimile signatures of the said President and Town Clerk may be impressed or printed on the coupons that may be attached to the bonds in lieu of the actual signatures of the said officials.
Section 8. Mayor and Council of Laurel is authorized and required to levy and raise by taxation, as general municipal taxes are levied and collected, such amount of money in each year as, in addition to sewer service charges, may be necessary to pay the interest accruing on the bonds issued, while they, or any of them, remain unpaid, and also such amount of money in each year as may be deemed adequate and necessary to establish a sinking fund for the payment of the bonds at maturity, or for their redemption before maturity. Sewer Service charges shall be devoted to the payment of interest on the bonds or to the sinking fund, while the bonds, or any of them, remain unpaid. Taxes for the payment of interest and for sinking fund purposes shall be in addition to the aggregate of taxes allowed to be raised for general or special municipal purposes, any provision of the Charter of the Town of Laurel, or amendment thereto, in respect of limitation of debt or amount of taxes to be levied and collected to the contrary notwithstanding.
Section 9. Bonds authorized hereunder may be issued and sold at such time or times as Mayor and Council of Laurel shall deem advisable for the payment or redemption of all bonds of the Town of Laurel now outstanding, and the authority hereby given shall not be exhausted until the aggregate of the bonds so issued shall reach the amount of One Hundred and Five Thousand and Five Hundred Dollars ($105,500.00).
Section 10. All bonds issued hereunder shall be exempt from all State, County and Municipal taxation, and the faith and credit of Mayor and Council of Laurel are pledged for the due payment of all bonds that may be issued hereunder and the interest thereon.