2 DE Code § 1405. (2021)
2021 Delaware Code|Title 2 - Transportation|Chapter 14. Transportation Trust Fund|§ 1405. Bonds secured by Transportation Trust Fund revenues.

§ 1405. Bonds secured by Transportation Trust Fund revenues. (a) The Authority shall have the power and is hereby authorized after July 15, 1987, and from time to time thereafter, to issue its bonds, in principal amounts as in the opinion of the Authority shall be necessary to provide for any of its corporate purposes, including the payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds issued by the Authority whether the bonds or interest to be funded or refunded have or have not become due; and to provide for the security thereof and for the establishment or increase of reserves to secure or to pay the bonds or interest thereon and all other reserves and all costs or expenses of the Authority incident to and necessary or convenient to carry out its corporate purposes and powers; and in addition to its bonds, the Authority shall have the power to issue subordinated indebtedness which shall be subordinate in lien to the lien of any or all of its bonds. No resolution or other action of the Authority providing for the issuance of bonds, refunding bonds or other obligations shall be adopted or otherwise made effective by the Authority without the prior approval in writing of the bond-issuing officer of the State. (b) Except as may be otherwise expressly provided by the Authority, issues of bonds of the Authority may be general obligations payable out of any revenues or funds of the Authority, or may be limited obligations, subject to any agreements with the holders of particular bonds and payable out of particular revenues or funds of the Authority. The Authority may provide the security and payment provisions for its bonds as it may determine, including (without limiting the generality of the foregoing) bonds as to which the principal and interest are payable from and secured by all or any portion of the revenues of and payments to the Authority and other moneys or funds as the Authority shall determine. In addition, the Authority may, in anticipation of the issuance of the bonds or the receipts of appropriations, grants, reimbursements or other funds, including without limitation grants from the federal government for federal aid highways or public transportation systems, issue notes the principal of or interest on which, or both, shall be payable out of the proceeds of notes, bonds or other obligations of the Authority or appropriations, grants, reimbursements or other funds or revenues of the Authority. The Authority may also enter into bank loan agreements, lines of credit and other security agreements and obtain for or on its behalf letters of credit in each case for the purpose of securing its bonds or to provide direct payment of any costs which the Authority is authorized to pay by this chapter and to secure repayment of any borrowings under the loan agreement, line of credit, letter of credit or other security agreement by its bonds or the proceeds thereof or by any or all of the revenues of and payments to the Authority or by any appropriation, grant or reimbursement to be received by the Authority and other moneys or funds as the Authority shall determine. (c) Whether or not the bonds are of the form and character as to be negotiable instruments under the terms of the Delaware Uniform Commercial Code, the bonds are hereby made negotiable instruments within the meaning of and for all the purposes of the Delaware Uniform Commercial Code. (d) Bonds of the Authority shall be authorized by a resolution or resolutions of the Authority and may be issued in 1 or more series and shall bear the date, or dates, mature at the time or times, bear interest at the rate or rates of interest per annum, be in the denomination or denominations, be in the form, carry the conversion or registration privileges, have the rank or priority, be executed in the manner, be payable from the sources, in the medium of payment, at the place or places within or without the State, and be subject to the terms of redemption (with or without premium) as the resolution or resolutions may provide. Bonds may be further secured by a trust indenture between the Authority and a corporate trustee within or without the State. All other obligations of the Authority shall be authorized by resolution containing terms and conditions as the Authority shall determine. (e) Bonds of the Authority may be sold at a price or prices and in a manner as provided in § 1311 of this title. (f) Bonds may be issued and other obligations incurred under this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the State, and without any other proceeding or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter. (g) Bonds of the Authority issued or incurred under this chapter shall not be in any way a debt or liability of the State or of any political subdivision thereof other than the Authority and shall not create or constitute any indebtedness, liability or obligation of the State or of any political subdivision or be or constitute a pledge of the faith and credit of the State or of any political subdivision, but all bonds unless funded or refunded by bonds of the Authority shall be payable solely from revenues or funds pledged or available for their payment as authorized in this chapter. Each bond shall contain on its face a statement to the effect that the Authority is obligated to pay the principal thereof, premium, if any, or the interest thereon only from revenues or funds of the Authority made available for that purpose and that neither the State nor any political subdivision is obligated to pay the principal, premium, if any, or interest thereon and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of, premium, if any, or interest on the bonds. For the purposes of this subsection, “political subdivision” does not include the Authority. (h) All expenses incurred in carrying out this chapter shall be payable solely from revenues or funds provided or to be provided under or pursuant to this chapter and nothing in this chapter shall be construed to authorize the Authority to incur any indebtedness or liability on behalf of or payable by the State or any political subdivision thereof. (i) Section 1312 of this title shall not apply to bonds of the Authority issued pursuant to this chapter. However, the Authority shall issue no bonds for any purpose unless the General Assembly by an act passed with the concurrence of three fourths of all the members elected to each House shall approve the purpose for which the bonds are issued and maximum amount of such bonds. No approval of the General Assembly shall be required:  (1) To refund bonds issued to fund the Delaware Turnpike with bonds the payment of principal and interest on which is to be met solely from tolls imposed on or revenues derived from the Delaware Turnpike; (2) To refund bonds issued pursuant to this chapter provided that the present value of the aggregate principal and interest payments of the refunding bonds are less than the present value of the aggregate principal and interest payments on the bonds to be refunded; or (3) To issue bonds to fund the costs of the Delaware Turnpike or any other toll road provided that such bonds are payable solely from the tolls imposed and other revenues derived therefrom or from the proceeds of such bonds. (j) Bonds may be issued with interest thereon free from or subject to federal income taxation. 66 Del. Laws, c. 87, §  1;  66 Del. Laws, c. 360, §  49;