2017 Delaware Code
Title 2 - Transportation
CHAPTER 13. DELAWARE TRANSPORTATION AUTHORITY
§ 1311. Bonds.

The Authority is hereby authorized to provide by resolution, at 1 time or from time to time, for the issuance of duly authorized bonds of the Authority for any of its corporate purposes, including the refunding of its bonds. The principal of, premium, if any, and the interest on any issue of bonds shall be payable solely from, and may be secured by, a pledge and assignment of revenues, provided, that the proceeds of any bonds may be used, pledged and assigned for the establishment of any or all reserves for such payment or security or for other corporate purposes as the Authority may authorize in its resolution authorizing the issuance of bonds or in a trust agreement securing the same.

The bonds of each issue shall be dated, shall bear interest at such rate or rates, shall mature at such time or times, may be redeemed before maturity, at the option of the Authority, at such price or prices and under such terms and conditions, all as may be fixed by the Authority prior to the issuance of the bonds. The Authority 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, which may be at any bank or trust company within or without the State. The bonds shall be signed by the Secretary or shall bear the Secretary's facsimile signature and the official seal of the Authority or a facsimile thereof shall be impressed, imprinted, engraved or otherwise reproduced thereon. The official seal or facsimile thereof shall be attested by the Director of the Office of Financial Management and Budget and/or the Administrator of the Transportation Trust Fund or by such other officer or agent as the Authority shall appoint and authorize and any coupons attached to such bonds shall bear the facsimile signature of the Secretary. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if the officer had remained in office until such delivery. All bonds issued under this chapter are hereby declared to have all the qualities and incidents of negotiable instruments under the Uniform Commercial Code of the State. The bonds may be issued in coupon or in registered form, or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The Authority may sell such bonds in such manner, whether at public or private sale, and for such price, as it may determine to be in the best interests of the Authority. Neither the Secretary nor any person executing the bonds shall be personally liable on the bonds or be accountable by reason of execution of any bonds or the issuance thereof in accordance with this chapter.

The proceeds of the bonds of each issue shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, subject to this chapter.

Prior to the preparation of definitive bonds, the Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds which shall become lost, stolen, mutilated or destroyed. Bonds may be issued under this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the State, and without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter.

Any bonds issued under this chapter may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State. Such trust agreement or the resolution providing for the issuance of such bonds may pledge and assign revenues to which the Authority's right then exists or may thereafter come into existence, and the moneys derived therefrom, and the proceeds of such bonds, but shall not convey or mortgage any road, highway, bridge, tunnel, overpass, underpass, interchange, entrance plaza, exit or approach constituting a portion of a turnpike. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the holders of bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the acquisition of property and the construction, reconstruction, improvement, extension, alteration, modernization, repair, operation and maintenance of transportation facilities, the charges, fares, fees, rates, rentals and tolls to be imposed, the payment, security or redemption of bonds, and the custody, safeguarding and application of all moneys, and provisions for the employment of persons in connection with the undertaking, maintenance or operation of such transportation facilities. Any such trust agreement or resolution may set forth the rights and remedies of the holders of bonds and of the trustee, and may restrict the individual rights of action by holders of bonds. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the holders of bonds, subject to this chapter. All expenses incurred in carrying out such resolution or trust agreement may be treated as a part of the cost of the operation of a transportation facility.

It shall be lawful for any bank or trust company incorporated under the laws of the State which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority.

This section is intended and shall be construed to authorize the Authority to finance any transportation facility or any combination of transportation facilities by any combination of issues or series of bonds which may be secured by the pledge of revenues derived from any transportation facility or facilities or combination of such facilities designated by the resolution authorizing the issuance of such bonds or by any trust agreement securing such bonds.

62 Del. Laws, c. 164, §§ 1, 2; 63 Del. Laws, c. 179, § 31; 69 Del. Laws, c. 435, § 26; 70 Del. Laws, c. 186, § 1.;