(a) The issuing officers shall authorize the issuance of bonds, notes and revenue notes of the State by resolution adopted by the unanimous vote of the issuing officers. Each issuing officer may designate a deputy to represent the issuing officer as an issuing officer at meetings of the issuing officers with full powers to act and vote in the issuing officer’s behalf. Bonds and notes shall be issued for the purposes authorized in an authorization act. Revenue notes shall be issued for purposes authorized by this chapter. Bonds, notes and revenue notes may be issued regardless of the treatment of interest thereon for federal income tax purposes.

Terms Used In Delaware Code Title 29 Sec. 7402

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Authorization act: means an act of the General Assembly, concurred in by 3/4 of all the members of each House, appropriating funds of the State from the proceeds of bonds authorized to be issued by such act. See Delaware Code Title 29 Sec. 7401
  • Bonds: means any bonds authorized to be issued by the State pursuant to an authorization act and to the payment of which the State has pledged its full faith and credit. See Delaware Code Title 29 Sec. 7401
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Issuing officers: means the Governor, Secretary of State, State Treasurer and Secretary of Finance of the State. See Delaware Code Title 29 Sec. 7401
  • Notes: means notes issued by the State in anticipation of the issuance of bonds authorized by an authorization act and to the payment of which the State has pledged its full faith and credit. See Delaware Code Title 29 Sec. 7401
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Revenue notes: means notes issued by the State in anticipation of the receipt by the State of taxes and revenues payable to the State and the payment of which the State has pledged its full faith and credit. See Delaware Code Title 29 Sec. 7401
  • State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
  • United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302

(b) Notwithstanding any other laws to the contrary, the issuing officers shall approve, by the same vote, individual contracts or classes of contracts with firms or individuals entered into by bond issuing authorities, agencies and instrumentalities created by the State other than authorities, agencies or instrumentalities constituting institutions of higher learning.

(c) Any other law to the contrary notwithstanding, the General Assembly hereby authorizes the issuance, from time to time, of general obligation bonds to refund, prior to their stated maturity, all or any portion of the outstanding general obligation bonds issued by the State and costs incidental thereto; provided, however, that the present value of the aggregate principal and interest payments of the refunding bonds must be less than the present value of the aggregate principal and interest payments on the bonds to be refunded.

(1) The present value of the aggregate principal and interest payments of the refunding bonds and of the bonds to be refunded shall be discounted at the effective interest rate on the refunding bonds, calculated based on the internal rate of return.

(2) Refunding bonds may be issued in a principal amount which exceeds the principal amount of the bonds to be refunded, so long as 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.

(3) Section 7423 of this title shall not apply to refunding bonds issued in accordance with, and under the limitations of, this subsection.

(4) The issuing officers, by resolution adopted by unanimous vote and without further authorization of the General Assembly, may resolve to issue refunding bonds authorized by this subsection at any time prior to the final maturity of the bonds to be refunded. Subject to the limitations imposed by this subsection, but any other law to the contrary notwithstanding, refunding bonds may be sold at public or private sale, above or below par, with principal installments payable at such times and in such amounts and on such other terms and conditions as the issuing officers determine. Without limiting the foregoing, refunding bonds are not required to pay current interest for all or any portion of the issue, and thus may be “zero coupon” or “capital appreciation” bonds.

(5) No refunding bonds may be issued unless all or a portion of the proceeds of the refunding bonds are deposited irrevocably in an account pledged to pay, and are sufficient together with any other available assets in such account to meet, the payment when due of the principal, premium (if any) and interest on the bonds to be refunded. The proceeds of the refunding bonds pledged to pay the bonds to be refunded may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States government.

(6) Any other law to the contrary notwithstanding, the issuing officers, by resolution adopted by unanimous vote, may resolve to issue refunding bonds to refund the State’s Certificates of Participation (Real Estate Acquisition Program) Series 1989 so long as the other requirements of this section are satisfied and assuming that said Certificates of Participation are treated as the bonds to be refunded.

29 Del. C. 1953, § ?7403; 54 Del. Laws, c. 124; 62 Del. Laws, c. 146, §§ ?6, 8; 63 Del. Laws, c. 179, § ?8; 64 Del. Laws, c. 131, § ?11(c), (f); 65 Del. Laws, c. 280, § ?1; 66 Del. Laws, c. 92, § ?19; 69 Del. Laws, c. 187, § ?1; 70 Del. Laws, c. 186, § ?1;