New Jersey § app:a-4

§ app:a-4.

To provide moneys for the purposes for which special taxes may or are to be levied

in any year beginning with the year of issuance, any issuing municipality may issue

for such year and from time to time renew its negotiable notes, each to be known as

“Special Tax Note of 19․․․ (stating the year of levy of such taxes)”, and each to run with its renewals for

a period of not exceeding five (5) years from its date, to an amount for each year

which, together with all other such notes of such year then outstanding, will not

exceed eighty per cent (80%) of the amount of special taxes levied or to be levied

in such year, less the amount of any such taxes of such year which may have been collected

at the time of issue or renewal of such notes as the case may be. If any such special taxes for any such year are collected by such municipality after

such notes are issued, then until the amount of such notes issued against the same

have been correspondingly reduced, the amount of such collections shall be charged

against the borrowing power of the current year, or, if that borrowing power has been

already used then against the borrowing power of the next following year. Any such notes (a) shall be authorized by resolution; (b) may, and if issued for

a period exceeding one (1) year, shall be made subject to redemption at not exceeding

par and accrued interest at the option of the municipality; (c) shall bear interest

at not exceeding six per cent (6%) per annum; (d) shall be issued in such form and

executed in such manner as may be prescribed by resolution; (e) may be sold at not

less than par and accrued interest at private sale without previous public offering

either by resolution or by a financial officer authorized to sell such notes by resolution. Any financial officer making any such sale shall report in writing to the governing

body at the next meeting the amount, description, interest rate and maturities of

the notes sold, the price obtained and the name of the purchaser, and such report

shall be entered in full on the minutes of such meeting. Such notes shall not be deemed tax anticipation, tax revenue or tax title bonds

or notes. Provision need not be made in the budget of any year for the payment of that principal

of any such notes maturing in such year if such notes may lawfully be renewed for

a period extending beyond such year, but such provision must be made in each year

for the payment of interest on all such notes. The power and obligation of the municipality to pay such notes shall be unlimited

and the municipality shall have power and be obligated to levy ad valorem taxes upon

all the taxable property within the municipality for the payment of such notes and

interest thereon without limitation of rate or amount.