Delaware § 1804 - Bond payable from special fund; complementary powers of governing body; proceeds.

§ 1804. Bond payable from special fund; complementary powers of governing body; proceeds.

(a) Bonds shall be payable from the special fund required under § 1805 of this title.

(b) If the governing body of the municipality issues bonds under this chapter, the governing body may also:

(1) Establish sinking funds;

(2) Establish debt service reserve funds;

(3) Pledge other assets and revenues towards the payments of the principal, premium, if any, and interest; or

(4) Provide for municipal bond insurance or any other type of credit enhancement or liquidity support of the bonds.

(c) All proceeds received from any bonds issued and sold shall be applied solely to pay costs, including:

(1) Costs of design, construction, establishment, extension, alteration or acquisition of infrastructure improvements;

(2) Costs of issuing bonds;

(3) Payment of the principal and interest on loans, including developer loans, money advances or any indebtedness for any of the purposes stated in § 1802(b)(1) and (2) of this title, including the refunding of bonds previously issued under this section;

(4) Funding of a debt service reserve fund or payment of interest prior to, during or for a limited period of time after construction; and

(5) Purposes described in § 1705 of this title.

74 Del. Laws, c. 145, §  2;  81 Del. Laws, c. 22, § 4;