SENATE BILL NO. 196
AN ACT TO AMEND CHAPTER 65, TITLE 14, DELAWARE CODE, RELATING TO GRANTING CONTINUING AUTHORITY TO THE BOARD OF TRUSTEES OF DELAWARE STATE COLLEGE TO ISSUE REVENUE BONDS FOR THE PURPOSE OF PRODUCING CAPITAL IMPROVEMENT FUNDS; FURTHER PROVIDING THAT SUCH REVENUE BONDS ISSUED PURSUANT TO THIS CHAPTER SHALL BE PAYABLE EXCLUSIVELY FROM SPECIFIED FUNDS OF DELAWARE STATE COLLEGE; AND FURTHER PROVIDING THAT BONDS ISSUED UNDER THE PROVISIONS OF THIS CHAPTER ARE MADE LEGAL INVESTMENTS FOR INSTITUTIONS AND FIDUCIARIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fourths of all members elected to each House thereof concurring therein):
Section 1. Amend Chapter 65, Title 14, Delaware Code, by adding thereto the following new sections to be designated as §§§6512, 6513, and 6514 to read as follows:
16512. Authority to Issue Bonds
The Board of trustees of Delaware State College may provide by resolution, from time to time, for the issuance in the name of Delaware State College of revenue bonds of the college, for the purpose of paying all or any part of the costs, including financing costs and necessary reserves for debt service, maintenance and the like, of one or more income producing capital improvements, including constructing and equipping income producing buildings and facilities to include dormitories/student
residences, cafeteria facilities, parking facilities, together with incidental acquisition of land therefor, landscaping, walks, drives and utility installations deemed necessary by said Board for the sound expansion and development of the college and for the purpose of refunding outstanding issues of such revenue bonds. The principal of such bonds shall be payable solely from college funds (other than state appropriated funds) specifically pledged in each case by said Board by resolution, and the adoption of such resolution shall fully perfect such pledge for all purposes. No part of the revenues or funds of the college from other sources shall in any manner be expended for the purpose of paying such principal and interest. The bonds of each issue shall be dated, shall bear interest at such rate or rates per annum, payable semiannually, shall mature at such time or times and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the Board of Trustees prior to the issuance of the bonds. The principal and interest of such bonds may be made payable in any lawful medium. The Board of Trustees shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof which may be at any bank or trust company within or without the State. The bonds shall be signed by the President of the Board of Trustees, or shall bear the facsimile signature of the President of the Board of Trustees, in which latter event such bonds shall authenticated by the manual signature of an officer of a bank or trust company appointed by resolution of the Board of Trustees as fiscal agent in connection with the bond issue, and the seal of the College, or facsimile thereof, shall be affixed to the bonds and shall be attested by the Secretary of the Board of Trustees, which attestation may, if the bonds are authenticated as above provided, be by facsimile signature of the Secretary of the Board of Trustees; and any coupons attached to the bonds shall bear the facsimile signature of the President of the Board of Trustees. In case any officer whose signature or a facsimile thereof shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All revenue bonds issued under this chapter shall have, and are declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the law of this State. Such bonds and the income therefrom shall be exempt from all taxation by the State or by any political subdivision, agency or authority thereof. The bonds may be issued in coupon or in regi.tered form or both as the Board of Trustees may
determine and provision may be made for the registration of any coupon bond as to principal alone and also as to both principal and interest, and for the reconversion of any bonds registered both as to principal and Interest into coupon bonds. The Board of Trustees may sell such bonds either at public or private sale in such manner and for such price as it may determine to be for the best interests of the college. The proceeds of such bonds shall be used solely for the payment of the cost of the specified capital improvements and shall be disbursed in the same manner as other college funds. If the proceeds of the bonds of any issue shall exceed the amount required for the purpose for which such bonds are issued, the surplus shall be held for application to the payment of principal and interest of such bonds. Prior to the preparation of definitive bonds, the Board of Trustees may, under like restrictions, issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issue of the latter. The Board of Trustees may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost. Any contracts or classes of contracts with firms or individuals entered into by Delaware State College in connection with the issuance and sale of any revenue bonds authorized by this section must be approved by the majority of the State's bond issuing officers <as defined for the purposes of Title 29, Delaware Code, Chapter 74), or authorized designees. Such revenue bonds may be issued without any other proceedings or the happening of any other conditions or things than those proceedings, conditions and things which are specified and required by this chapter.
§6513. Bonds as Legal Investments for Institutions and Fiduciaries.
Bonds issued under this chapter are made securities in which all state and municipal officers and administrative departments, boards and commissions of the State, all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries, and all other persons whatsoever authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control; and such bonds are made securities which may properly and legally be deposited with and received by any state, county or municipal officer or agency of the STATE for any purpose for which the deposit of bonds or other obligations of the State is authorized by law.
§6514. Credit of State not Pledged.
Revenue bonds issued under this chapter shall be payable exclusively from specified funds of the college. All such bonds shall contain a statement on their face that the STATE is not obligated to pay the same or the interest thereon and that the faith and credit of the State are not pledged to the payment of the principal or interest of such bonds. The issuance of revenue bonds under the chapter shall not directly or indirectly or contingently obligate the State to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment."
Approved July 3, 1991.