New Jersey § 13:8c-7

§ 13:8c-7.

a. The trust shall have the power and is hereby authorized to issue its bonds, notes

or other obligations in principal amounts as determined by the trust to be necessary

to provide for any of its corporate purposes, including the payment, funding or refunding

of the principal of, or interest on, or redemption premiums, if any, on bonds, notes

or other obligations issued by it, whether the bonds, notes, obligations or interest

to be funded or refunded have or have not become due; and to provide for the security

thereof and for the establishment or increase of reserves to secure or to pay the

bonds, notes or other obligations or interest thereon and all other reserves and all

costs or expenses of the trust incident to and necessary or convenient to carry out

its corporate purposes and powers; and in addition to its bonds, notes and other

obligations, the trust shall have the power to issue subordinated indebtedness, which

shall be subordinate in lien to the lien of any or all of its bonds, notes or other

obligations as the trust may determine. No resolution or other action of the trust providing for the issuance of bonds,

refunding bonds, notes or other obligations shall be adopted or otherwise made effective

by the trust without the prior approval in writing of the Governor and the State Treasurer. b. Except as may be otherwise expressly provided in P.L.1999, c. 152 ( C.13:8C-1 et seq. ) or by the trust, every issue of bonds, notes or other obligations shall be general

obligations payable out of any revenues or funds of the trust, subject only to any

agreements with the holders of particular bonds, notes or other obligations pledging

any particular revenues or funds. The trust may provide the security and payment provisions for its bonds, notes or

other obligations as it may determine, including, without limiting the generality

of the foregoing, bonds, notes or other obligations as to which the principal and

interest are payable from and secured by all or any portion of the revenues of and

payments to the trust, and other moneys or funds as the trust shall determine. The trust may also enter into bank loan agreements, lines of credit and other security

agreements as authorized pursuant to subsection g. of section 6 of P.L.1999, c. 152 ( C.13:8C-6 ) and obtain for or on its behalf letters of credit in each case for the purpose of

securing its bonds, notes or other obligations or to provide direct payment of any

costs which the trust is authorized to pay by P.L.1999, c. 152 and to secure repayment of any borrowings under the loan agreement, line of credit,

letter of credit or other security agreement by its bonds, notes or other obligations

or the proceeds thereof or by any or all of the revenues of and payments to the trust

or by any appropriation, grant or reimbursement to be received by the trust and other

moneys or funds as the trust shall determine. c. Whether or not the bonds and notes are of the form and character as to be negotiable

instruments under the terms of Title 12A, Commercial Transactions, of the New Jersey

Statutes, the bonds and notes are hereby made negotiable instruments within the meaning

of and for all the purposes of Title 12A. d. Bonds or notes of the trust shall be authorized by a resolution or resolutions

of the trust and may be issued in one or more series and shall bear the date, or dates,

mature at the time or times, bear interest at the rate or rates of interest per annum,

be in the denomination or denominations, be in the form, carry the conversion or registration

privileges, have the rank or priority, be executed in the manner, be payable from

the sources, in the medium of payment, at the place or places within or outside of

the State, and be subject to the terms of redemption, with or without premium, as

the resolution or resolutions may provide. Bonds or notes may be further secured by a trust indenture between the trust and

a corporate trustee within or outside of the State. All other obligations of the trust shall be authorized by resolution containing

terms and conditions as the trust shall determine. e. Bonds, notes or other obligations of the trust may be sold at public or private

sale at a price or prices and in a manner as the trust shall determine, either on

a negotiated or on a competitive basis. f. Bonds or notes may be issued and other obligations incurred under the provisions

of P.L.1999, c. 152 ( C.13:8C-1 et seq. ) without obtaining the consent of any department, division, commission, board, bureau

or agency of the State, other than the approval as required by subsection a. of this

section, and without any other proceedings or the happening of any other conditions

or other things than those proceedings, conditions or things which are specifically

required by P.L.1999, c. 152 . g. Bonds, notes and other obligations of the trust issued or incurred under the provisions

of P.L.1999, c. 152 ( C.13:8C-1 et seq. ) shall not be in any way a debt or liability of the State or of any political subdivision

thereof other than the trust 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, notes and obligations, unless funded or refunded by bonds, notes or other

obligations of the trust, shall be payable solely from revenues or funds pledged or

available for their payment as authorized in P.L.1999, c. 152 . Each bond, note or other obligation shall contain on its face a statement to the

effect that the trust is obligated to pay the principal thereof, redemption premium,

if any, or the interest thereon only from revenues or funds of the trust and that

neither the State nor any political subdivision thereof is obligated to pay the principal

thereof, redemption 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, redemption premium, if any, or the

interest on the bonds, notes or other obligations. For the purposes of this subsection, political subdivision does not include the

trust. h. All expenses incurred in carrying out the provisions of P.L.1999, c. 152 ( C.13:8C-1 et seq. ) shall be payable solely from the revenues or funds provided or to be provided under

or pursuant to the provisions of P.L.1999, c. 152 and nothing in P.L.1999, c. 152 shall be construed to authorize the trust to incur any indebtedness or liability

on behalf of or payable by the State or any political subdivision thereof. i. Prior to July 1, 2009, the aggregate principal amount of bonds, notes or other

obligations, including subordinated indebtedness, of the trust shall not exceed $1,150,000,000 ; except that this limitation shall not include any bonds, notes or other obligations,

including subordinated indebtedness, of the trust issued for refunding purposes in

accordance with the provisions of this section, and any bonds, notes or other obligations

of the trust issued to fund the costs of issuance of its bonds, notes or other obligations. After June 30, 2009, the trust may issue only refunding bonds in any amount subject

to subsections j. through n. of this section. The trust shall not issue bonds, notes or other obligations in any State fiscal year

in excess of $350,000,000 , except that if that permitted amount of bonds, notes or other obligations, or any

portion thereof, is not issued in a State fiscal year it may be issued in a subsequent

State fiscal year. Any increase in this limitation shall only occur if so provided for by law. The limitations specified in this subsection shall apply only to bonds, notes or other

obligations of the trust that are payable from, or secured by, amounts on deposit

in the Garden State Preservation Trust Fund Account established pursuant to section

17 of P.L.1999, c. 152 ( C.13:8C-17 ) . j. Upon the decision by the trust to issue refunding bonds pursuant to this section,

and prior to the sale of those bonds, the trust shall transmit to the Joint Budget

Oversight Committee, or its successor, a report that a decision has been made, reciting

the basis on which the decision was made, including an estimate of the debt service

savings to be achieved and the calculations upon which the trust relied when making

the decision to issue refunding bonds. The report shall also disclose the intent of the trust to issue and sell the refunding

bonds at public or private sale and the reasons therefor. k. The Joint Budget Oversight Committee, or its successor, shall have authority to

approve or disapprove the sale of refunding bonds as included in each report submitted

in accordance with subsection j. of this section. The Joint Budget Oversight Committee, or its successor, shall approve or disapprove

the sale of refunding bonds within 10 business days after physical receipt of the

report. The Joint Budget Oversight Committee, or its successor, shall notify the trust in

writing of the approval or disapproval as expeditiously as possible. l. No refunding bonds shall be issued unless the report has been submitted to and approved

by the Joint Budget Oversight Committee, or its successor, as set forth in subsection

k. of this section. m. Within 30 days after the sale of the refunding bonds, the trust shall notify the

Joint Budget Oversight Committee, or its successor, of the result of that sale, including

the prices and terms, conditions and regulations concerning the refunding bonds, and

the actual amount of debt service savings to be realized as a result of the sale of

refunding bonds. n. The Joint Budget Oversight Committee, or its successor, shall, however, review

all information and reports submitted in accordance with this section and may, on

its own initiative, make observations and recommendations to the trust or to the Legislature,

or both, as it deems appropriate.