§ 1163 — Creation of debt
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(a) (1) The County Council shall exercise all power vested in the Levy Court of New Castle County prior to January 3, 1967, in connection with the creation of debt, and in addition, shall have the power to authorize the issuance of bonds of New Castle County to finance the cost of any object, program or purpose for which New Castle 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, applicable to New Castle County; provided, however, that the County Council shall not have authority to create or to authorize the creating of any bonded indebtedness for 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; the payment for any equipment or any public improvement of a normal life of less than 3 years. The foregoing limitations shall not apply should the County Council unanimously declare the existence of an emergency due to public calamity.
(2) The powers conferred by this chapter shall be in addition to and not in substitution for or in limitation of the powers conferred by any other law. Bonds may be issued under this section for any object or purpose for which the County is by this chapter or any other law authorized to raise or appropriate or expend money notwithstanding that any other law may provide for the issuance of bonds for the same or like purposes and without regard to the requirements, restrictions or other provisions contained in any other law. Bonds may be issued under this chapter notwithstanding any debt or other limitation prescribed by any other law, and the mode and manner of procedure for the issuance of bonds and the adoption of the ordinance authorizing issuance of the bonds under this chapter need not conform to the provisions of any other law or any other provision of this chapter.
(3) Bonds issued pursuant to this chapter shall be authorized by an ordinance passed by the County Council with the concurrence of5/7of all of the members elected to the County Council. However, when County Council has more than 7 members, bonds issued pursuant to this chapter shall be authorized by an ordinance passed by the County Council with the concurrence of3/4of all the members elected to the County Council. Each such ordinance shall state in brief and general terms the objects or purposes for which the bonds are to be issued and the maximum aggregate principal amount of bonds to be issued for each such object or purpose. Such ordinance, or a subsequent resolution of the County Council, shall specify, or may delegate authority to the County Executive to determine, the following: The date or dates of such bonds; the maturity of such bonds; provisions for either serial or term bonds; sinking fund or other reserve fund requirements, if any; due dates of the interest thereon; the form of such bonds; the denominations and designation of such bonds; registration, conversion and transfer privileges; provisions for redemption prior to maturity, if any, with or without premium; limitations with respect to the interest rate or rates on such bonds; the times and place or places within or without this State for the payment of the principal of or interest on the bonds; the method of execution of the bonds; provisions for the consolidation of bonds authorized for several objects and purposes pursuant to 1 or more ordinances into 1 consolidated issue; provisions for the receipt and deposit or investment of the good faith deposit pending delivery of such bonds; provisions for the public or private sale of the bonds as hereinafter provided; provisions for the replacement of lost, stolen, mutilated or destroyed bonds; and such other terms and conditions of such bonds and of the issuance and sale thereof as the County Council may determine to be in the best interests of the County. Debt incurred by the County Council pursuant to this chapter may be represented by uncertificated obligations of the County Council which may be authorized in accordance with the same procedures applicable to bonds which are permitted to be issued under this chapter, and the County Council by resolution may determine, or it may delegate authority to the County Executive to determine, all procedures appropriate to the establishment of a system of issuing uncertificated debt.
(4) The bonds authorized by each ordinance shall mature as may be determined by the County Council but in any event not later than 30 years after the date of the bonds; provided, however, that the last maturity of bonds issued to finance any single water, sewer or wastewater improvement costing over $5,000,000 may mature not later than 40 years after the date of such bonds.
(5) Bonds issued pursuant to this chapter shall be sold by the County Executive at public sale upon sealed proposals after at least 10 days’ notice published at least once in 1 newspaper of general circulation published in New Castle County and on the website of New Castle County, at such price and upon such terms, conditions and regulations as the County Council may prescribe; provided, that the County Council may authorize the County Executive to sell such bonds at public or private sale upon such terms, conditions and regulations as it may prescribe.
(6) The proceeds of the sale of bonds 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 for the payment of the principal of and interest on temporary loans made in anticipation of the sale of such bonds. If for any reason any part of such proceeds are not applied to or are 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.
(7) a. Bonds shall not be issued pursuant to this chapter if their issuance would increase the aggregate principal amount of all bonds of the County then outstanding to an amount in excess of 3% of the assessed valuation of the real estate taxable by the County. Provided, however, that in computing the outstanding bonds under the previous sentence of this paragraph, there shall not be included therein any bond, notes or other evidences of indebtedness issued, or which may be issued, after January 8, 1968:
1. Under Chapter 23 of this title for the purpose of financing facilities for sanitary districts or under Chapter 5 of this title for the purpose of financing suburban community improvements;
2. Under this chapter or any other provision of law for the purpose of financing the construction or acquisition of sewer or sewage systems, airport facilities or water improvements or supply systems;
3. To the extent of any sinking fund or other reserve fund which will be available for the payment of, and which is pledged to secure, said debt;
4. In anticipation of tax or other revenues pursuant to subsection (c) of this section; or
5. Which do not pledge the full faith and credit of the County.
b. For the purposes of calculating under paragraph (a)(7)a.3. of this section, above, the amount of any sinking or reserve fund which will be available for payment of a debt, such fund shall be counted only to the extent that it is invested in obligations of, or guaranteed by, the United States or any agency or instrumentality thereof and, to the extent that the rate of investment earnings thereon is not fixed or guaranteed, such rate shall be assumed to be 6% per annum.
(8) Whenever the County Council shall have authorized the issuance of bonds by an ordinance adopted pursuant to this chapter, the County may borrow money in anticipation of the issuance of such bonds so authorized and, for such purpose, may issue, and may from time to time, renew negotiable bond anticipation notes of the County, of an aggregate principal amount not exceeding the principal amount of such bonds authorized by such resolution. The County may also borrow money in anticipation of the receipt of grants either from the federal or state government or from any of their agencies, and for such purpose, may issue, and may from time to time, renew negotiable grant anticipation notes of the County in an aggregate amount, including interest thereon to the date of maturity, not greater than the grant or grants in anticipation of the receipt of which the notes are issued. The principal of and interest on the grant anticipation notes shall be payable out of the proceeds of the grant or grants, and the County shall so covenant. With respect to bond anticipation notes and grant anticipation notes, the County Council shall authorize such notes by a resolution or resolutions which shall determine the date of the notes, the date on which such notes are to be payable, the maximum principal amount thereof and the rate or maximum rate of interest to be borne thereby and the manner of their signing. The County Council in such resolution may delegate to the County Executive authority to sell the notes thereby authorized, either at public or private sale, and to determine within the limitations prescribed by such resolution the rate of interest to be borne by such notes and the principal amount thereof. Moneys raised by the issuance of notes in anticipation of the issuance of bonds or in anticipation of the receipt of grants shall be used only to finance the object or purpose for which the proceeds of the bonds or grants, respectively, may be used and such proceeds shall be applied, to the extent necessary, to pay and retire such notes. Notwithstanding any provisions of paragraph (a)(10) of this section, and notwithstanding any other provision of this chapter or any provision of any other law, grant anticipation notes may be made payable only from the proceeds of grants and need not pledge the faith and credit or taxing power of the County, and in that case, the notes may not be deemed to constitute an indebtedness of or a charge against the general credit or taxing power of the County within the meaning of any debt or other limitation or any provision of any other law.
(9) The full faith and credit of the County shall be deemed to be pledged for the punctual payment of the principal of and interest on every bond and note issued under this chapter. The County Council shall annually levy and collect a tax ad valorem upon all property taxable by the County sufficient to pay the principal of and interest on each such bond or note as such principal and interest become due; provided, however, such tax may be reduced by the amount of other moneys appropriated and actually available for such purpose or provided for by local or special assessments or local service taxes. Nothing in this subsection shall relieve the government of New Castle from any requirement to levy any local or special assessment or local service tax.
(10) All bonds, notes or other evidences of indebtedness issued pursuant to this chapter shall recite that they are issued for a purpose or purposes as specified in the authorizing ordinance or resolution and that they are issued pursuant to the terms of the Constitution and laws of this State and the County. Upon the sale and delivery of any such bonds, notes or other evidences of indebtedness against payment, such recitals shall be conclusive as to the right, power and authority of the County to issue the same and of the legality, validity and enforceability of the obligation of the County to pay principal of and interest on the same. In case any county official whose signature or a facsimile thereof shall appear on any such bonds, notes or other evidences of indebtedness shall cease to be such officer before the delivery of such obligation, or in case the seal of the County which appears on any such obligation shall change before the delivery of such obligation, such signature, seal or facsimile thereof shall nevertheless be valid and sufficient for all purposes as if such officer had remained in office and as if such seal had not changed. The legality, validity and enforceability of such bonds, notes or other evidences of indebtedness shall never be questioned in any court of law or equity by the County or any person after the issuance, execution and delivery against payment for the same. All such bonds, notes and other evidences of indebtedness are hereby declared to have all the qualities and incidents of negotiable instruments under the commercial code of this State.
(b) The County Council may authorize the Chief Financial Officer to issue bonds or certificates of indebtedness to finance assessable public improvements in the manner provided by law.
(c) The County Council, subject to such limitations as may be imposed by the Constitution or laws of the State, may borrow in any fiscal year in the anticipation of the collection of taxes or other revenue budgeted for such year, and for any purposes for which such taxes are levied, such sums as shall not be in excess of 50% of the amount of uncollected taxes of such fiscal year.
Delaware § 1163 (Creation of debt) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.