New Jersey § 34:1b-7

§ 34:1b-7.

a. The New Jersey Economic Development Authority is authorized to issue bonds, in

an aggregate amount not exceeding $100,000,000, the proceeds from which shall be used

to provide matching funds to assist in the financing of school district projects in

accordance with the provisions of this section. The bonds so issued shall be secured by the repayment by school districts of loans

made pursuant to this 1993 amendatory and supplementary act, or, in the case of default

on any such loan repayment, by the school facilities financing bond reserve established

pursuant to section 6 of this 1993 amendatory and supplementary act. 1 b. The authority shall establish and maintain a special nonlapsing revolving fund

to be known as the “Public Schools Small Projects Loan Assistance Fund,” hereinafter

the “small projects fund,” which shall be credited with: (1) the proceeds of the

sale of bonds pursuant to subsection a. of this section; (2) any moneys that shall

be received by the authority from the repayment of loans made from the small projects

fund and interest thereon; and (3) any other moneys which the authority determines

to deposit therein. c. The authority shall use the monies in the small projects fund exclusively for:

(1) matching funds to provide market rate loans to school districts to finance an

amount up to the remaining balance of the cost of a project approved for funding from

the compliance fund pursuant to section 4 of this 1993 amendatory and supplementary

act 2 or from the facilities fund pursuant to section 5 of this 1993 amendatory and supplementary

act, 3 whether or not the project is required to bring the buildings that, at the time of

application do not meet State health and safety code requirements, into compliance

with those requirements; provided that the total cost of the project, including moneys

received from the compliance fund or the facilities fund, does not exceed $5,000,000;

and (2) payment of any principal, interest, premium and expenses incurred in connection

with the bonds issued pursuant to subsection a. of this section. d. (1) The authority shall establish the terms of the market rate loans which shall

include, but not be limited to, the actual rate of interest, a schedule for drawing

down loan funds, and the repayment schedule for the loans. 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

small projects fund for use in the manner provided for in this section. e. Net earnings received from the investment or deposit of monies in the small projects

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

this section. 1

N.J.S.A. § 18A:56-21. 2

N.J.S.A. § 34:1B-7.23. 3

N.J.S.A. § 34:1B-7.24.