Delaware § 3304 - Bonds payable from special fund; complementary powers of governing body; proceeds.

§ 3304. Bonds payable from special fund; complementary powers of governing body; proceeds.

(a) Bonds shall be payable from the special fund required under § 3305 of this title.

(b) If the county council issues bonds under this section, the county council 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 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 improvements, including infrastructure improvements;

(2) Costs of issuing bonds;

(3) Permissive costs of issuing and servicing the bonds, which may include up to 0.5% of the bond issue as origination costs incurred by the county, and up to 2.0% of the bond debt service payments as administrative costs if administered by the county;

(4) Payment of the principal and interest on loans, development loans, money advances, or any indebtedness for any of the purposes stated in § 3302(b) of this title, including the refunding of bonds previously issued under this section;

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

(6) Purposes described in §§ 3205 and 3302(b) of this title.

76 Del. Laws, c. 187, §  2;