Delaware Code Title 9 Sec. 5408 – Uses of special fund
(a) Uses of special fund when no bonds outstanding. —
Terms Used In Delaware Code Title 9 Sec. 5408
- bond: means any revenue or general obligation bonds or bond, notes or note, or other similar instruments or instrument issued by the County pursuant to and in accordance with this chapter. See Delaware Code Title 9 Sec. 5402
- County: means Kent County. See Delaware Code Title 9 Sec. 5402
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Issuing body: means a municipality or other political subdivision, department or agency of the State (other than the County) when it acts to issue a bond, a note, or other similar instrument. See Delaware Code Title 9 Sec. 5402
- Levy Court: means Kent County Levy Court. See Delaware Code Title 9 Sec. 5402
- 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.
- TIF District: means an area designated by a resolution described in § 5406(1) of this title. See Delaware Code Title 9 Sec. 5402
- Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302
When no bonds authorized by this chapter are outstanding with respect to a TIF District created pursuant to § 5407 of this title and the Levy Court so determines, moneys in the special fund for that TIF District may be:
(1) Used for any of the purposes described in § 5405 of this title for which bond proceeds could be used;
(2) Accumulated for payment of debt service on bonds subsequently issued under this chapter;
(3) Used to pay or to reimburse the County for debt service which the County is obligated to pay or has paid (whether such obligation is general or limited) on bonds issued by the County, or any agency, department or political subdivision thereof, the proceeds of which have been used for any of the purposes stated in § 5405 of this title, or used to pay or reimburse any developer loan;
(4) Used to pay or to reimburse an issuing body for debt service which the County is obligated to pay (whether such obligation is general or limited) on other obligations under an agreement described in subsection (b) of this section; or
(5) Paid to the County to provide funds to be used for any legal purpose as may be determined by the County.
(b) Pledge agreement. —
The County may pledge, by written agreement, that amounts deposited to the special fund created for the TIF District pursuant to § 5407 of this title shall be paid over to secure the payment, or reimbursement of a payment, of debt service on other obligations. Such agreement shall be between the County and the issuing body, and shall run to the benefit of and be enforceable on behalf of any holder, of such other obligations.
(c) Restrictions on use of special funds. —
When any bonds authorized by this chapter are outstanding with respect to a TIF District and the Levy Court so determines, moneys in the special fund for that TIF District created pursuant to § 5407 of this title may be used as provided in subsection (a) or (b) of this section in any fiscal year by the County, but only to the extent that:
(1) The amount in such special fund exceeds the unpaid debt service payable on such bonds in such fiscal year and is not restricted so as to prohibit the use of such moneys;
(2) Such use is not prohibited by the ordinance authorizing the issuance of such bonds; and to the extent not prohibited by bond or loan covenants.