Delaware Code
Subchapter I. General Provisions
§ 4504. Bonds; authorization, amount, terms, sale and interest rate.

(a) The planning, acquisition, purchase, construction, reconstruction, improvement, betterment or extension of any sewerage or water system may be authorized under this chapter and bonds may be authorized to be issued under this chapter to provide funds for such purposes by resolution of the county government.
(b) The county government, in determining the cost of acquiring or constructing any water system, may include all costs and estimated costs of the issuance of the bonds, all planning, engineering, inspection, fiscal and legal expenses, and interest which it is estimated will accrue during the construction period and for 6 months thereafter on money borrowed or which it is estimated will be borrowed pursuant to this chapter.
(c) The bonds shall bear interest at such rates, may be in 1 or more series, may bear such dates, may mature at such times not exceeding 40 years from their respective dates, may be payable in such medium of payment, at such place or places, may carry such registration privileges, may be subject to such terms of redemption, may be executed in such manner, may contain such terms, covenants and conditions, and may be in such form, either coupon or registered, as the resolution or subsequent resolutions provide.
(d) Any bonds issued pursuant to this chapter shall be sold at public sale and the county government shall advertise that they will receive bids at such place or places as may be named in said advertisement for such bonds as may be determined by the county government.
(e) Sufficient notice of sale of said bonds shall be deemed to have been given if said notice shall have been published at least once 10 or more days before the date of sale, in at least 1 newspaper published in the County and in a financial journal published in the City of New York, and no other publication of such notice of sale shall be necessary, and said bonds may be sold upon such terms and conditions as may be set forth in such notice of sale, provided that the purchase price shall be not less than par and accrued interest.
(f) In the event that the bonds so offered for sale are not bid for, or if no legally acceptable bid is received for the bonds, they may be sold under the direction of the county government at private sale upon the best terms they can obtain for the same, provided that they shall not be sold at private sale for less than par and accrued interest and at a rate which shall not exceed 6% per annum.
(g) Without limiting the power granted the county government as to the terms and conditions which they may set forth in a notice of sale, the county government may request bids and award the bonds upon any of the following conditions:

(1) Bidders may be invited to name a single rate of interest for the issue or issues contained in the notice of sale, in which event the bonds can be awarded to the bidder offering to take all of the bonds at the lowest rate of interest, and as between bidders naming the same lowest rate of interest, the amount of premium will determine the award; or
(2) Bidders may be invited, with respect to a single issue, a combined issue or several other issues of bonds included in 1 notice of sale, to name 1 rate of interest for part of the bonds (having the earliest maturities) and another rate or rates for the balance of the bonds, and may permit a different interest rate for each maturity, or may limit the number of rates which may be proposed. If proposals are so invited, the bonds should be awarded to the bidder offering to purchase the bonds at the lowest net interest cost to the County, the net interest cost to be determined by computing the aggregate amount of interest payable on the bonds from their date to their respective maturities and by deducting from such aggregate amount the premium offered, if any.
(h) Pending the preparation of the definitive bonds, interim receipts or certificates in such form and with such provisions as the county government determines may be issued to the purchasers of bonds sold pursuant to this chapter.
(i) The rate of interest may be determined in advance of sale, or the bonds may be offered for sale at a rate of interest to be fixed by the purchaser of such bonds.

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