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Delaware Laws | Title 2 Transportation
CHAPTER 14. TRANSPORTATION TRUST FUND
Sec. 1405. Bonds secured by Transportation Trust Fund revenues.

(e) Bonds of the Authority may be sold at a price or prices and in a manner as provided in Sec. 1311 of this title. (931)

(f) Bonds may be issued and other obligations incurred under this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the State, and without any other proceeding or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter. (932)

(g) Bonds of the Authority issued or incurred under this chapter shall not be in any way a debt or liability of the State or of any political subdivision thereof other than the Authority and shall not create or constitute any indebtedness, liability or obligation of the State or of any political subdivision or be or constitute a pledge of the faith and credit of the State or of any political subdivision, but all bonds unless funded or refunded by bonds of the Authority shall be payable solely from revenues or funds pledged or available for their payment as authorized in this chapter. Each bond shall contain on its face a statement to the effect that the Authority is obligated to pay the principal thereof, premium, if any, or the interest thereon only from revenues or funds of the Authority made available for that purpose and that neither the State nor any political subdivision is obligated to pay the principal, premium, if any, or interest thereon and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of, premium, if any, or interest on the bonds. For the purposes of this subsection, "political subdivision" does not include the Authority. (933)

(h) All expenses incurred in carrying out this chapter shall be payable solely from revenues or funds provided or to be provided under or pursuant to this chapter and nothing in this chapter shall be construed to authorize the Authority to incur any indebtedness or liability on behalf of or payable by the State or any political subdivision thereof. (934)

(i) Section 1312 of this title shall not apply to bonds of the Authority issued pursuant to this chapter. However, the Authority shall issue no bonds for any purpose unless the General Assembly by an act passed with the concurrence of three fourths of all the members elected to each House shall approve the purpose for which the bonds are issued and maximum amount of such bonds. No approval of the General Assembly shall be required: (935)

(1) To refund bonds issued to fund the Delaware Turnpike with bonds the payment of principal and interest on which is to be met solely from tolls imposed on or revenues derived from the Delaware Turnpike; (936)

(2) To refund bonds issued pursuant to this chapter provided that the present value of the aggregate principal and interest payments of the refunding bonds are less than the present value of the aggregate principal and interest payments on the bonds to be refunded; or (937)

(3) To issue bonds to fund the costs of the Delaware Turnpike or any other toll road provided that such bonds are payable solely from the tolls imposed and other revenues derived therefrom or from the proceeds of such bonds. (938)

(j) Bonds may be issued with interest thereon free from or subject to federal income taxation. (939)

(66 Del. Laws, c. 87, Sec. 1; 66 Del. Laws, c. 360, Sec. 49.) (940)

Sec. 1406. Covenants with holders of bonds. (941)(Text)

In any resolution of the Authority authorizing or relating to the issuance of any bonds, or in any trust agreement securing the bonds, the Authority, in order to secure the payment of the bonds, and in addition to its other powers, shall have the power by provisions therein which shall constitute covenants by the Authority and contracts with the holders of the bonds: (942)

(1) To pledge all or any part of its revenues or receipts to which its right then exists or may thereafter come into existence and other moneys, funds or contracts as the Authority shall determine and the moneys derived therefrom and the proceeds of any bonds; (943)

(2) To covenant against pledging all or any part of its revenues or receipts or its agreements and the revenues derived thereunder or the proceeds thereof and other moneys or funds as the Authority shall determine and the moneys derived therefrom or against permitting or suffering any lien on any of the foregoing; (944)

(3) To covenant with respect to limitations on any right to sell, lease or otherwise dispose of any property of any kind; (945)

(4) To covenant as to any bonds, to be issued and the limitations thereof and the terms and conditions thereof and as to the custody, application, investment and disposition of the proceeds thereof; (946)

(5) To covenant as to the issuance of additional bonds or as to limitations on the issuance of additional bonds and on the incurring of other debts by it; (947)

(6) To covenant as to the payment of the principal or premium, if any, or interest on the bonds, as to the sources and methods of payment, as to the rank or priority of any bonds, with respect to any lien or security or as to the acceleration of the maturity of any bonds; (948)

(7) To provide for the replacement of lost, stolen, destroyed or mutilated bonds; (949)

(8) To covenant against extending the time for the payment of bonds or interest thereon; (950)

(9) To covenant as to the redemption of bonds and privileges of exchange thereof for other bonds of the Authority; (951)

(10) Subject to the rights and security interests of the holders from time to time of bonds theretofore or hereafter issued by the Authority, to covenant as to the enforcement of any term in any agreement, entered into pursuant to this chapter, to which the Authority is a party or an assignee, fixing amounts of funds to be paid over to and received by the Authority in each year or other period of time, including any term concerning the fixing of tolls and other charges on turnpikes as shall be necessary to provide the amounts of funds; (952)

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