Delaware § 5504 - Bonds payable from special fund; complementary powers of governing body; proceeds.

§ 5504. Bonds payable from special fund; complementary powers of governing body; proceeds.

(a) Bonds shall be payable from the special fund required under § 5505 of this title.

(b) If the County issues bonds under this section, the Levy Court may also:

(1) Establish sinking funds for such bonds;

(2) Establish debt service reserve funds for such bonds;

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

(4) Provide for bond insurance or any other type of credit enhancement or liquidity support of such 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) Payment of the principal and interest on loans, including development loans, money advances, or any indebtedness for any of the purposes stated in § 5502(b)(1) and (2) of this title, including the refunding of bonds previously issued under this chapter;

(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 § 5502(b)(1) and (2) of this title.

81 Del. Laws, c. 26, § 1;