CHAPTER 382
FORMERLY
HOUSE BILL NO. 711
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE TO AUTHORIZE THE ESTABLISHMENT OF LINES OF CREDIT AND THE ISSUANCE OF PROMISSORY NOTES FOR AMOUNTS BORROWED PURSUANT TO SAID LINES OF CREDIT BY RESOLUTION OF THE SUSSEX COUNTY COUNCIL.
WHEREAS, Title 9 of the Delaware Code currently requires the Sussex County Council to follow procedures for the enactment of an ordinance when establishing a line of credit for short term borrowing purposes; and
WHEREAS, it is often necessary to establish a line of credit for short term borrowing purposes In a time period less than that required for advertising an ordinance and holding a public hearing thereon; and
WHEREAS, this legislative enactment authorizes the Sussex County Council to establish lines of credit for short term borrowing purposes and to execute, issue and deliver promissory notes for amounts borrowed pursuant to said lines of credit, by resolution.
NOW THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 7002(t)(3), Title 9, Delaware Code, by deleting said paragraph In Its entirety and by substituting in lieu thereof a new paragraph (3) to read as follows:
"(3) Bonds and notes issued pursuant to this chapter shall be authorized by ordinance of the county government approved by not less that four-fifths (4/5) of all of the members thereof; provided, however, that the County government shall be authorized by resolution approved by a majority of all of the members thereof to establish lines of credit for short term borrowing purposes and to execute, Issue, and deliver promissory notes for amounts borrowed pursuant to said lines of credit. Each such ordinance or resolution shall state in brief and general terms the objects or purposes for which the bonds or notes are to be issued and the maximum aggregate principal amount of bonds or notes to be issued for each such object or purpose. Such ordinance, or a subsequent resolution of the County government pertaining to such ordinance, or a resolution of the County government, shall specify, or may delegate authority to the County Administrator to determine, with respect to any bonds and notes the following: their date or dates; their maturity; the security therefore, if any, including a pledge of the County's full faith and credit, if there is to be such a pledge; federal or state grants or other revenues of property; provisions for either serial or term bonds; sinking fund or other reserve fund requirements, if any; provisions for redemption prior to maturity, if any, with or without premiums; the interest rate or rates, including variable rates, and any limitation with respect thereto or the manner of their determination; the times and place or places within or without the state for the payment of principal and interest; the method of execution; the form; provisions, if any, for the consolidation of debt authorized for several objects and purposes pursuant to one or more ordinances into one consolidated issue; provisions, if any, for the receipt and deposit or investment of any good faith deposit; provisions for the public or private sale of bonds; and such other terms and conditions as the County government may determine to be in the best interest of the County. Debt Incurred by the County pursuant to this Chapter may be represented by uncertificated obligations of the County which may be applicable to bonds and notes which are permitted to be issued under this Chapter, and the County government by resolution may determine, or it may delegate authority to the County Administrator to determine, all procedures appropriate to the establishment of a system of issuing uncertificated debt."
Section 2. Amend Section 7002(t)(1), Title 9, Delaware Code, by deleting said paragraph Its entirety and by substituting in lieu thereof a new paragraph (1) to read as follows:
"(1) The county government shall exercise all powers heretofore vested in the county government of Sussex County in connection with the creation of debt, and shall have the power to authorize the issuance of bonds and notes of Sussex County to finance the cost of any object, program or purpose for which Sussex County, or any officer, department, board or agency thereof, is, by this title or by any other law, authorized to raise, appropriate or expend money, or for the implementation and performance of functions, programs and purposes specified in this title or in any other law applicant to Sussex County; provided, however, that the county government shall not have authority to create or to authorize the creation of any bonded indebtedness for any of the following purposes: the payment of any operating expenses; the payment of any judgment resulting from the failure of the County to pay any item of operating expense; or the payment for any equipment or any public improvements of a normal life of less than 3 years. The foregoing limitations shall not apply should the county government unanimously declare the existence of any emergency due to public calamity. The term "bonded indebtedness" shall not include the promissory notes issued pursuant to lines of credit for short term borrowing purposes. "Short term borrowing purposes" shall include borrowings with a term of not to exceed five (5) years from date of such note, or a note that is payable upon demand of the obligee."
Section 3. Amend Section 7002(t)(7), Title 9, Delaware Code, by deleting said paragraph in its entirety and by substituting in lieu thereof a new paragraph (7) to read as follows:
"(7) The proceeds from the sale of bonds and notes issued under this chapter shall be used only for the object or purpose or objects or purposes specified in the ordinance authorizing such bonds or notes for the payment of the principal of and interest on temporary loans made in anticipation of the sale of such bonds or notes. If for any reason any part of such proceeds is not applied to or is not necessary for such purposes, such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on such bonds or notes no later than the earliest date on which such bonds or notes may be called for redemption without premium, or shall be applied as set forth in such ordinance or resolution, or a subsequent ordinance or resolution of the County.
Approved July 17, 1990.