CHAPTER 140 - DELMAR
AN ACT AUTHORIZING "THE MAYOR AND COUNCIL OF THE TOWN OF DELMAR" TO REFUND A CERTAIN PART OF THE DEBT OF THE SAID "THE MAYOR AND COUNCIL OF THE TOWN OF DELMAR", KNOWN AS "DELMAR DRAINAGE BONDS."
WHEREAS, by act of the General Assembly of the State of Delaware, approved March 19, A. D. 1925, being Chapter 152 of Volume 34, Laws of Delaware, "The Mayor and Council of the Town of Delmar" was authorized and empowered to borrow upon the faith and credit of the said town Forty-six Thousand Dollars ($46,000) to be expended to provide a complete and adequate surface drainage system for the use and benefit of the said Town of Delmar and its inhabitants, and for the purpose of securing the payment of such sum to issue bonds of such denominations as the said "The Mayor and Council of the Town of Delmar" should deem best and bearing such rate of interest, not exceeding the legal rate, as the said "The Mayor and Council of the Town of Delmar" should deem expedient; and,
WHEREAS, the said The Mayor and Council of the Town of Delmar" in pursuance of said act issued said bonds to the amount of Forty-six Thousand Dollars ($46,000), the said bonds being known and designated as "Delmar Drainage Bonds", all of which bonds now remain outstanding; and,
WHEREAS, it is now the intent and purpose of this Act that the said indebtedness represented by said outstanding bonds amounting to the sum of Forty-six Thousand Dollars ($46,000) shall be refunded at a lower rate of interest;
Now, therefore, be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all members elected to each Branch thereof concurring therein):
Section 1. That "The Mayor and Council of the Town of Delmar", a municipal corporation of the State of Delaware, be and it is hereby authorized, fully empowered and directed to borrow upon the faith and credit of the said Town of Delmar, the sum of Forty-six Thousand ($46,000) Dollars for the purpose of paying, refunding and redeeming all outstanding Delmar Drainage Bonds issued under authority of Chapter 152 of Volume 34, Laws of Delaware, amounting to the sum of Forty-six Thousand ($46,000) Dollars, the said bonds so to be issued to be known as "Delmar Drainage Refunding Bonds."
Section 2. That the said bonds shall be of the denomination of One Thousand Dollars ($1000) each and shall bear interest at such rate, not exceeding four (4%) per centum per annum, as the Town of Delmar shall determine. The interest upon the said bonds shall be payable semi-annually in each and every year from the date of issue appearing thereon at such bank or trust company in said Town of Delmar as said municipal corporation may designate. The principal of said bonds shall be made payable at the expiration of thirty years from the date of the issue thereof, the said "The Mayor and Council of the Town of Delmar" reserving the right and authority to redeem said bonds or any part of them after the expiration of ten years from the date of issue, provided that such election shall be effected on any day on which the semiannual interest is due and in pursuance of a notice to that effect published by the said "The Mayor and Council of the Town of Delmar" in at least two issues of at least two newspapers in Sussex County, Delaware, the first of said publications of said notice to be at least thirty days prior to the date on which said bond or bonds is or are to be redeemed. In calling said bonds for redemption and payment, they shall be called consecutively, commencing with the lowest number of the issue; and the interest on said bond or bonds so called in and redeemed shall cease from the date fixed in the said notice for the redemption thereof, and the said bonds when paid shall be cancelled. If at any time after the issue of said bonds and before they are payable or called in and redeemed as herein provided, any holder or holders of any such bond or bonds shall offer the same for redemption, the said "The Mayor and Council of the Town of Delmar", if it deem it expedient so to do, may redeem or pay the bond or bonds so offered, and cancel the same, the interest on said bond or bonds so redeemed and cancelled to cease from the date of such redemption.
Section 3. That the said "The Mayor and Council of the Town of Delmar" shall direct and effect the preparation and printing of the bonds authorized by this Act and shall also prescribe the form of said bonds, which shall be signed by the Mayor of said town, as President of the said "The Mayor and Council of the Town of Delmar", and countersigned by its Treasurer, and shall be sealed with the corporate seal of said corporation. Said bonds shall be exempt from all State, County and Municipal taxation. Each of said bonds shall contain coupons providing for the payment of the interest thereon as said interest shall become due, and as the said bonds and any of said coupons are paid, the same shall be cancelled in such manner as the said "The Mayor and Council of the Town of Delmar" shall direct.
Section 4. That the said bonds shall be sold as soon as reasonably possible after the approval of this Act. And it shall be the duty of "The Mayor and Council of the Town of Delmar" to advertise that sealed bids will be received for the purchase of the same at such place or places and under such regulations as they may designate in said advertisements. Said advertisements shall be published in at least two issues of at least two newspapers published in and out of the State of Delaware, as "The Mayor and Council of the Town of Delmar" may deem necessary and proper. "The Mayor and Council of the Town of Delmar" shall have the right to reject any and all bids for said bonds if, in their judgment, they are deemed insufficient.
If no bids are received for said bonds or if the bids received are rejected because of being inadequate, the said "The Mayor and Council of the Town of Delmar" may sell the same at private sale for the best price obtainable therefor, provided said price shall be not less than par and accrued interest.
Section 5. That the said "The Mayor and Council of the Town of Delmar" shall annually provide for the sum equal to the amount of interest due each year upon said bonds, and, as and when the said "The Mayor and Council of the Town of Delmar" shall see fit to call any or all of said bonds under Section 2 hereof, shall in like manner provide for a sum sufficient for the payment or redemption of such bonds in addition to the amount necessary' to pay the interest thereon. The said "The Mayor and Council of the Town of Delmar" is further hereby authorized and empowered to assess and collect annually in the same manner a tax for the purpose of establishing a sinking fund adequate for the redemption at and before maturity of the bonds issued under the provisions of this Act. The principal and interest of said bonds shall be deposited in any bank or banks in the Town of Delmar for the purpose of paying the interest on said bonds from time to time and to pay any or all of said bonds which may be called or redeemed.
Section 6. The faith and credit of the said Town of Delmar are hereby pledged for the payment of the bonds authorized to be issued under the provisions of this Act, together with all interest thereon.
Approved April 19, 1937.