2023 Delaware Code › Title 17 - Highways › Chapter 3. THE DELAWARE MEMORIAL BRIDGE › § 318. Authority to issue bonds.

§ 318. Authority to issue bonds.
(a) (1) The Department may provide by resolution, at 1 time or from time to time, for the issuance in the name of the State of revenue bonds of the State, not to exceed in the aggregate principal amount the sum of $49,050,000, including such bonds as were issued prior to the enactment of this Code, for the purpose of paying all or any part of the costs of construction of the Bridge, as defined in this chapter, or any additions thereto or improvements thereof.
(2) The principal and interest of such bonds shall be payable solely from the special fund provided in this chapter for such payment, and no part of the revenues of the Department from other sources shall in any manner be expended for the purpose of defraying the costs of the Bridge or any part thereof.
(3) a. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding 4 percent 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 Department prior to the issuance of the bonds.
b. The principal and interest of such bonds may be made payable in any lawful medium.
(4) The Department 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.
(5) a. The bonds shall be signed by the Secretary of the Department and the Great Seal of the State, or a facsimile thereof, shall be affixed thereto and shall be attested by the Secretary of State, and any coupons attached thereto shall bear the facsimile signature of the Secretary of the Department.
b. 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 the officer had remained in office until such delivery.
(6) All revenue bonds issued under this chapter shall have, and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under the Negotiable Instruments Law of this State.
(7) Such bonds and the income therefrom shall be exempt from all taxation by the State or by any political subdivision, agency or authority thereof.
(8) The bonds may be issued in coupon or in registered form or both as the Department 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.
(9) The Department 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 State, but no such sale shall be made at a price so low as to require the payment of interest on money received therefor at more than 4 percent per annum, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values.
(b) (1) The proceeds of such bonds shall be used solely for the payment of the cost of construction of the Bridge and its approaches and connections and additions thereto and improvements thereof and shall be disbursed upon requests of the Secretary of the Department under such restrictions, if any, as the resolution authorizing the issuance of such bonds or the trust indenture mentioned in this chapter may provide.
(2) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times remain available to the Department for the purposes herein set out.
(3) If the proceeds of such bonds, by error of estimates or otherwise, shall be less than the cost of the project, additional bonds may in like manner be issued to provide the amount of such deficit; provided that the aggregate principal amount of such additional bonds, together with the principal amount of all bonds theretofore issued, shall not exceed the sum of $49,050,000 and, unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust indenture, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued for the same purpose.
(4) 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 paid into the fund hereinafter provided for the payment of principal and interest of such bonds.
(c) (1) Prior to the preparation of definitive bonds, the Department may, under like restrictions, issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.
(2) The Department may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost.
(3) 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.
45 Del. Laws, c. 275, §  1;  17 Del. C. 1953, §  318;  50 Del. Laws, c. 575, §  1;  52 Del. Laws, c. 206, §  1;  52 Del. Laws, c. 216, §  1;  57 Del. Laws, c. 671, §  2B;