New Jersey § 34:1b-7

§ 34:1b-7.

a. The authority shall establish and maintain a special nonlapsing revolving fund

to be known as the “Public School Facilities Loan Assistance Fund,” hereinafter the

“facilities fund,” which shall be credited with: (1) not less than $105,000,000 from

the amount of capital funding appropriated for school facilities pursuant to the annual

appropriations act for the State fiscal year ending June 30, 1994, P.L.1993 c. 155 ; (2) the $20,000,000 allocated from the Economic Recovery Fund pursuant to paragraph

(2) of subsection d. of section 4 of P.L.1992, c. 16 ( C.34:1B-7.13 ); (3) any moneys that shall be received by the authority from the repayment of loans

made from the facilities fund and interest thereon; and (4) any other moneys which

the authority determines to deposit therein. b. The authority may use the moneys in the facilities fund to provide for low interest

loans to finance not less than 25%, and not more than 50%, of the total cost of any

project, in accordance with the criteria set forth in this section, for the purpose

of renovation, repair or other alteration of existing school buildings, for construction

of new school buildings or for the conversion of existing school buildings to other

instructional purposes, whether or not that renovation, repair, alteration, construction

or conversion is required to bring buildings that, at the time of application do not

meet State health and safety code requirements, into compliance with those requirements. c. Upon application by any school district to the authority for a loan to be made

pursuant to subsection b. of this section, the authority shall, in consultation with

the commissioner, determine whether to grant approval for the loan based upon the

appropriate authorization for the loan pursuant to subsection (d) of N.J.S. 18A:20-4.2 , or the project pursuant to P.L.1991, c. 139 ( C.18A:7A-46.1 et seq. ), as the case may be, the relationship of the project to the enhancement of the school's

academic programs, the ability of the school district to begin and complete the project

in an expeditious manner, the ability of the school district to proceed with the funding

of the balance of the moneys needed for the project, and the extent to which approval

of the project would contribute to the equable 1 distribution of moneys in the facilities fund. d. The balance of the moneys needed for a project for which an application for a loan

is made pursuant to subsection b. of this section may be funded by the school district

by: (1) the issuance of bonds, or other borrowing, excluding lease-purchase agreements,

pursuant to the provisions of subsection (d) of N.J.S. 18A:20-4.2 , N.J.S. 18A:24-5 et seq. , or P.L.1991, c. 139 ( C.18A:7A-46.1 et seq. ) as appropriate; (2) if the borrowing of money or the issuance of bonds is authorized

pursuant to subsection (d) of N.J.S. 18A:20-4.2 or N.J.S. 18A:24-5 et seq. , as the case may be, or if the project is approved pursuant to P.L.1991, c. 139 ( C.18A:7A-46.1 et seq. ), as appropriate, borrowing from the “Public Schools Small Projects Loan Assistance

Fund” established pursuant to section 7 of P.L.1993, c. 102 ( C.34:1B-7.25 ) , if the total cost of the project does not exceed $5,000,000; (3) moneys of the

school district not necessary for the completion of any other specific projects;

and (4) any other lawful source; except that no project funded or approved to be

funded by school district bonds authorized, pursuant to law, prior to December 31,

1992 shall be funded pursuant to P.L.1993, c. 102 ( C.34:1B-7.20 et al.) . e. (1) The authority shall establish the terms of the loan which shall include, but

not be limited to, the rate of interest, a schedule for drawing down loan funds, and

a repayment schedule. The repayments shall be treated by the school district as net debt service for school

aid purposes. In addition to the amount of taxes determined by the legal voters of the district

at the annual school election, the secretary of the board of education shall certify

the amount required for the repayment of the interest and principal of the loan in

the same manner required for interest and debt redemption charges pursuant to N.J.S. 18A:22-33 , and the amount so certified shall be included in the taxes assessed, levied and

collected in the municipality or municipalities comprising the school district for

such purposes. (2) All repayments, and interest thereon, shall be deposited by the authority in the

facilities fund for use in the manner provided for in this section, except insofar

as the authority may direct that such amounts be deposited in the small projects fund

established pursuant to section 7 of P.L.1993, c. 102 ( C.34:1B-7.25 ) . (3) Notwithstanding any provision of this section to the contrary, on and after the

effective date of P.L.1996, c. 48 ( C.34:1B-7.23a et al.), any loan repayments and interest thereon on deposit or deposited into the

facilities fund shall be paid by the authority to the State Treasurer for deposit

into the General Fund of the State, provided that the payment shall not violate any

existing agreement of the authority with bondholders. f. Net earnings received from the investment or deposit of moneys in the facilities

fund by the authority shall be redeposited in the fund for use for the purposes of

this section. 1

So in enrolled bill, probably should read equitable.