CHAPTER 78 – STATE OF DELAWARE AUTHORIZED TO BORROW $1,165,000 AND ISSUE BONDS THEREFOR
AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW $1,165,000.00 AND ISSUE BONDS THEREFOR FOR THE PURPOSE OF PURCHASING AND ERECTING NEW AND IMPROVED BUILDINGS, GROUNDS AND EQUIPMENT FOR CERTAIN STATE INSTITUTIONS AND THE UNIVERSITY OF DELAWARE AND SCHOOL DISTRICTS AND FOR THE PURPOSE OF CONSTRUCTING ROADS, BRIDGES AND HIGHWAYS.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (three-fourths of all the members elected to each branch thereof concurring therein):
Section 1. That the Governor and the State Treasurer and the Secretary of State of the State of Delaware herein sometimes referred to as the "issuing officers", are hereby authorized, fully empowered and directed, to borrow upon the faith and credit of the State of Delaware a sum of money not in excess of One Million, One Hundred and Sixty-five Thousand Dollars ($1,165,000.00), Two Hundred and Fifty Thousand Dollars ($250,000.00) of which shall be used for the purposes set forth in an Act of the One Hundred and Eighth Session of the General Assembly entitled, "An Act making appropriations to the State Highway Department for the construction and reconstruction of the roads, highways and bridges of the State and for expenditures incidental thereto for each of the fiscal years ending June 30, 1942 and June 30, 1943", Twenty-five Thousand Dollars ($25,000.00) of which shall be used for the construction and/or replacement of buildings and/or equipment at the Ferris Industrial School of Delaware, Sixty Thousand Dollars ($60,000.00) of which shall be used for the construction and/or equipment of buildings at the Delaware State Hospital, Twenty-five Thousand Dollars ($25,000.00) of which shall be used for the construction and/or equipment for the buildings and/or equipment for the Delaware Commission for the Feeble-Minded, Forty-five Thousand Dollars ($45,000.00) of which shall be used for the construction and/or equipment of buildings for the State Welfare Commission of the State Welfare Home, Ten Thousand Dollars ($10,000.00) of which shall be used for the construction of a Substation in Sussex County for agricultural research purposes by the Board of Trustees of the University of Delaware, and Seven Hundred and Fifty Thousand Dollars ($750,000.00) of which shall be made available to the State Board of Education for use and aid in a school building program and/or the University of Delaware for the construction and equipment of an athletic Field House, provided that all of the sums authorized to be borrowed under this Act shall be appropriated under the terms and conditions of an appropriation act entitled, "An Act to provide for the purchase and construction of new and improved buildings, grounds and equipment for certain State institutions and the University of Delaware and school districts of this State and relating to the cost thereof and making appropriation therefor and providing for the means of payment."
Section 2. That the said bonds, issued in accordance with the provisions of this Act, shall be a direct general obligation of the State, and the public faith and credit of the State is hereby expressly pledged for the full and complete payment of the debt, principal and interest. The principal and interest of the said bonds shall be exempt from taxation by the State or by any political subdivision thereof, for any purpose whatsoever.
Section 3. That the said bonds shall be signed in the name of the State of Delaware by the Governor, the Secretary of State, and the State Treasurer, and shall have the great seal of the State impressed thereon. Attached interest coupons shall be authenticated by the signature or facsimile signature of the State Treasurer. The said bonds may be issued notwithstanding that any of the officers signing them or whose facsimile signature appears on the coupons 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 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 the constitution of this State, and such recital shall be conclusive evidence of the authority of the State to issue said bonds and of their validity. Any such bonds containing such recital shall, in any suit, action or proceeding 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.
Section 5. That the said bonds shall be in such form and in such denomination and may contain such other and further recital and be subject to such terms and conditions, with such privileges as to registration, conversion, reconversion, redemption and exchange, and may contain such other provisions, as may be determined by the said "issuing officers."
Section 6. That the said bonds shall bear interest payable semi-annually at a rate of interest not exceeding two and one-half per centum (21/2%) per annum.
Section 7. That the said bonds shall mature as the "issuing officers" may determine; provided, however, that beginning after June 30, 1941, not less than Forty Thousand Dollars ($40,000.00) of the principal debt hereby authorized shall be paid each year until the total of the said debt is fully paid.
Section 8. That all money received from the sale of the said bonds authorized under the provisions of this Act shall be deposited by the State Treasurer in a Special Fund, at the Farmers' Bank of the State of Delaware, at Dover, to be opened by him for such purpose, and shall be used exclusively for the purpose set forth in this Act, and shall be allocated to the several institutions, departments and school districts of the State and for the purposes referred to in Section 1 of this Act, in the amounts and proportions to each, as designated in and allocated by certain Acts of the present General Assembly appropriating to such institutions of the State the money received from the sale of the said bonds authorized by this Act.
Section 9. That the Budget Appropriation Bill enacted and approved by the General Assembly at the One Hundred and Ninth Session, and at each and every subsequent biennial session thereof, shall contain under the Debt Service Item provisions for the payment of maturity principal and interest of said bonds issued by virtue of this Act and of such revenues of the State of Delaware that are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellations of the said bonds and the payment of the interest thereon.
Approved May 7, 1941.