Delaware General Assembly

CHAPTER 19 - REFUNDING OF CERTAIN HIGHWAY BONDS

AN ACT AUTHORIZING THE REFUNDING OF CERTAIN HIGHWAY BONDS OF THE STATE OF DELAWARE BY ISSUING REFUNDING BONDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That The State of Delaware is hereby authorized and empowered to borrow, upon the faith and credit of The State of Delaware, the sum of Two Million Seven Hundred and Five Thousand Dollars ($2,705,000.00) for the purpose of refunding certain State Highway Bonds in said total sum of Two Million Seven Hundred and Five Thousand Dollars ($2,705,000.00), heretofore issued by The State of Delaware pursuant to law, and for the purpose of securing the payment of such sum to issue new bonds therefor to be known as "State Highway Refunding Bonds."

Section 2. That the said bonds shall be of the denomination of One Thousand Dollars ($1,000.00) each, with coupons thereto attached for each half year's interest thereon, the said bonds shall be dated the first day of July A. D. 1935, and shall be numbered consecutively. They shall bear interest from and after the first day of July A. D. 1935 at three per centum (3%) per annum, interest payable semi-annually, on the first day of January and July in each year thereafter which said bonds remain unpaid, at the Farmers' Bank of The State of Delaware, at Dover, upon presentation of a coupon representing such semi-annual interest.

Section 3. Said bonds shall be divided into twenty-seven classes and paid at their face value as follows:

Class Amounts Year of Maturity

A $100,000.00 1938

B 100,000.00 1939

C 100,000.00 1940

Section 4. The principal of said bonds shall be payable at the Farmers' Bank of The State of Delaware, at Dover, on the first day of July of the year of maturity according to the class thereof as provided by Section 3 hereof, on presentation and surrender of said bonds.

Said bonds shall be prepared under the supervision of the Secretary of State, and shall be signed by the Governor, Secretary of State and State Treasurer on behalf of The State of Delaware, and shall have the Great Seal of the State impressed thereon.

The signature of the said Treasurer shall be engraved, printed or written on such coupon, and when printed or engraved shall have the same effect as if written, and the coupon attached to each bond shall be numbered consecutively, and bear the number and/or class of the bonds to which it is attached to identify it therewith.

Section 5. The bonds to be issued shall be in the following form, except that the blanks be appropriately filled in before the said bonds shall be issued, to wit:

UNITED STATES OF AMERICA

THE STATE OF DELAWARE

Class _______

Number _____ $1,000.00

STATE HIGHWAY REFUNDING BONDS

These presents certify and make known The State of Delaware is held and firmly bound unto the bearer in the sum of One Thousand Dollars ($1,000.00), lawful money of the United States of America, which the said State promises and binds itself to pay to the bearer at the Farmers' Bank of The State of Delaware, at Dover, on the first day of July, A. D. 19____, with interest at the rate of three per centum (3%) per annum, likewise payable at the Farmers' Bank of The State of Delaware, at Dover, on the first days of January and July of each and every year, while the said principal sum remains unpaid, upon the presentation of the coupon as hereto annexed representing such semi-annual installment of interest.

Dated at Dover the first day of July, A. D. 1935.

WITNESS the Great Seal of The State of Delaware, and the hands of the Governor, Secretary of State and State Treasurer, the day and year aforesaid.

(GREAT SEAL)

_________________

Governor

_________________

Secretary of State

_________________

State Treasurer

And the coupons shall be in the following form, to wit: No _____

The State of Delaware will pay to the bearer at the Farmers' Bank of The State of Delaware, at Dover, on the first day of _____ A. D. 19 , the sum of _____ Dollars ($___), for six months' interest on bond No ___ Class ___ of State Highway Refunding Bonds.

Dated July 1st, 1935.

_________________

State Treasurer

Section 6. The public faith of The State of Delaware is hereby expressly pledged for the full and complete payment of the debt, principal and interest by this Act authorized and the bonds hereby authorized to be issued and the coupons thereto attached, and the said bonds shall be exempt from taxation by the State or any political subdivision thereof for any purpose.

Section 7. Upon sale and delivery to the purchaser thereof of any bond issued under the provisions of this Act, the right, power and authority for the issuance of said bonds and the legality and validity of such bonds and of the principal debt and interest represented thereby shall be conclusive upon The State of Delaware, and all and every other person whatsoever, and the legality and validity of such bonds thereafter shall never be questioned in any Court of law or equity by The State of Delaware or any person or persons for its use or in its behalf, and this provision shall be and become part of the contract and obligation represented by said bond.

Section 8. Said bonds, or any part thereof, may be sold when and as the Governor, Secretary of State and the State Treasurer of this State, or the majority of them, shall determine, and to this end, the Governor, Secretary of State and State Treasurer of this State are hereby authorized and directed to advertise twice a week for four successive weeks in such newspapers and journals in and out of the State as in their judgment may be conducive to the sale of said bonds, that they will receive bids at such place or places that may be named in said advertisement for such bonds under such regulations as may be made in the discretion of the Governor, Secretary of State and State Treasurer, and accrued interest between the date of the bonds and the time of sale and delivery of and payment of such bonds shall be adjusted with the purchaser thereof under such regulations as may be made in the discretion of the Governor, Secretary of State and State Treasurer, provided that any overdue coupons attached to the bonds shall be before the sale of said bonds, be detached and cancelled in accordance with the provisions of this Act, and upon the day mentioned in said advertisement as the day for opening of the bids for said bonds, the said Governor, Secretary of State and State Treasurer, or the majority of them, shall receive such bids for the purpose of all or such number of the bonds designated in said advertisement to be sold, and on opening of said bids as many of said bonds as shall have been bid for, shall be awarded by the said Governor, Secretary of State and State Treasurer, to the highest responsible bidder or bidders therefor, for cash, provided, the amount bidden is adequate in the judgment of the Governor, Secretary of State and State Treasurer, or the majority of them. If two or more bidders have made the same bid and such bid is the highest, and the bonds so bid for by the highest responsible bidders are in excess of the whole amount of the bonds so offered for sale, such bonds shall be awarded to such highest responsible bidders bidding the same price in a ratable proportion. If any of said bonds so offered for sale are not bid for, or if any insufficient price be bid for them, they may be subsequently disposed of under the direction of the Governor, Secretary of State and State Treasurer at private sale upon the best terms they can obtain for the same, provided, that they shall not be sold at private sale for less than par and accrued interest.

Section 9. All moneys received from the sale of any or all of said bonds after the payment of the proper charges and expenses incident to the preparation and sale thereof, shall be deposited with the Farmers' Bank of the State of Delaware, at Dover, by the State Treasurer in a separate account, to be opened by him for that purpose, and shall be used for the payment and/or refunding of State Highway Bonds heretofore issued under authority of Chapter 63 of 29 Delaware Laws, as amended, and for no other purpose whatever.

Section 10. As soon as practical after the receipt of moneys from the sale of bonds authorized by this Act, the now outstanding State Highway Bonds of this State, issued pursuant to the provisions of Chapter 63 of 29 Delaware Laws, as amended, shall be called for payment by the proper officers and shall be redeemed and fully paid and cancelled pursuant to the provisions of said Chapter.

Section 11. It shall be the duty of the State Treasurer to provide a record of proper size and form to be retained in his office so ruled as to afford a separate space for each coupon and the space at the top of each page of said record for each bond when paid, and each space at the top of said record shall bear the same number and class as the bond, the record whereof is intended to be preserved. As the said coupons are paid, it shall be the duty of the State Treasurer to mark the same in red ink across the face "Paid", cut each of them in two lengthwise, paste the pieces in the aforesaid spaces for each coupon in the record aforesaid, and as the said bonds shall be paid and redeemed the State Treasurer shall cause the same to be cancelled by making lines with red ink through the signatures of the Governor, Secretary of State and State Treasurer, also by writing across the face thereof, in red ink, the words

"This bond paid and redeemed this ____ day of _____ A D ____

______________

State Treasurer

And all coupons unmatured and surrendered with each bond redeemed shall each likewise be endorsed "Cancelled by the redemption of Bond No ___" in red ink. When paid or redeemed the said bonds shall be pasted in the proper spaces aforesaid.

Approved April 15, 1935.