New Jersey § 18a:58-33

§ 18a:58-33.

(a) A copy of said resolution of the State Board of Education determining a school

district to be entitled to additional State school building aid, together with a copy

of said ordinance or proposal bearing the endorsement of the Commissioner of Education,

shall be submitted to the State Treasurer for his consideration. If the State Treasurer is satisfied after investigation either, (a) that the payment

of the debt service (interest and principal) on the bonds proposed to be authorized

by such ordinance or proposal will not cause the amount of additional State school

building aid to be paid pursuant to this act to exceed the sum herein provided (with

respect to such school district), or (b) that the payment of the debt service (interest

and principal) in each year on the bonds authorized by such ordinance or proposal

will not exceed the allocation with respect to such school district, he shall endorse

his approval to that effect upon the copy of such ordinance or proposal. (b) A copy of any such ordinance or proposal authorizing bonds for school purposes

and bearing said endorsements of the Commissioner of Education and State Treasurer,

shall be submitted to the local finance board for its consideration, and the local

finance board in considering such copy of any ordinance or proposal submitted to it

and before endorsing its consent thereon may require the governing body of any municipality

or board of education of any school district submitting any such ordinance or proposal

to adopt resolutions restricting or limiting any future proceedings therein or other

matters or things deemed by the local finance board to affect any estimate made or

to be made by it in accordance with subsection (c) hereof, and every such resolution

so adopted shall constitute a valid and binding obligation of such municipality or

school district, as the case may be, running to and enforceable by, and releasable

by, the local finance board. (c) Within 60 days after such submission to it, the local finance board shall cause

its consent to be endorsed upon such copy of any ordinance or proposal authorizing

such bonds, if it shall be satisfied, and shall record by resolution, its estimates

that the amounts to be expended for the school district projects or educational facilities

to be financed pursuant to such ordinance or proposal are not unreasonable or exorbitant;

and that issuance of the bonds, proposed to be authorized by such ordinance or proposal,

will not materially impair the credit of any municipality comprised within the district

or substantially reduce its ability, during the ensuing 10 years, to pay punctually

the principal and interest of its debts and supply essential public improvements and

services, but if the local finance board is not so satisfied it shall cause its disapproval

to be endorsed on such copy within said period of 60 days. (d) Any bonds entitled to the benefits of the provisions of this act, shall be deductible

in determining the net school debt of any school district for any purpose or computation

under section 18A:24-19 of the New Jersey Statutes , and the amount of all such bonds shall be deducted from the gross debt of any municipality

constituting the whole or any part of such school district for any of the purposes

of section 40A:2-44 of the New Jersey Statutes and shall be a deduction within the meaning and for the purpose of clause (g) of

said section to any extent that such bonds are not deductible under clause (a) or

clause (b) of said section, and shall at all times constitute a deduction from gross

debt on any annual or supplemental debt statement of such municipality. (e) All of such bonds when issued shall contain a recital to the effect that they

are issued pursuant to Title 18A, Education, of the New Jersey Statutes 1 and are entitled to the benefits of the provisions of this act. Any bonds entitled to the benefits of the provisions of this act shall be authorized

and issued in the manner provided for in Title 18A, Education, of the New Jersey Statutes,

and notwithstanding the provisions of section 18A:24-19 of the New Jersey Statutes . Compliance with the provisions of this act by or on behalf of any school district

or municipality shall make it unnecessary to comply with any of the provisions of sections 18A:24-20 through 18A:24-27 of the New Jersey Statutes , and such sections shall not be applicable with respect to authorization or issuance

of any bonds entitled to the benefits of the provisions of this act. Bonds entitled to the benefits of the provisions of this act shall mature not later

than 30 years from their date and without regard to any limitations as to maturities

or amounts of annual installments for such bonds as provided in Title 18A, Education,

of the New Jersey Statutes. (f) The Commissioner of Education is hereby authorized and directed to establish and

maintain records pertaining to each issue of bonds entitled to the benefits of this

act and setting forth as to such bonds the amount to be payable in each year on account

of debt service (interest and principal) on such bonds, and such records as aforesaid

shall be conclusive as to the amount so payable on account of such debt service, and

the Commissioner of Education is hereby authorized and empowered to certify for any

purpose such amounts as so payable on account of debt service with respect to such

bonds. A school district or municipality authorized to issue such bonds may make application

to the Commissioner of Education and the local finance board setting forth request

for adjustment as to amount payable in any year on account of debt service with respect

to such bonds, and the Commissioner of Education and the local finance board are each

hereby authorized and empowered to grant such request if it shall be found that such

request is reasonable and in the financial interest of such school district or municipality,

and that the requested adjustment as to the amount payable in any year for debt service

(principal and interest) on such bonds does not exceed the amount of the allocation

then applicable as to such year with respect to such school district or municipality. The Commissioner of Education shall cause such records to be adjusted and shall

certify by reference to such records the adjusted debt service with respect to such

bonds after giving effect to such request, and such bonds shall thereafter be eligible

with respect to payments hereunder for debt service (principal and interest) in accordance

with such certification. Upon issuance of any bonds benefiting under this act the chief financial officer

of the school district or municipality issuing such bonds shall, within 30 days after

issuance of such bonds, certify to the Commissioner of Education the exact amount

payable on account of debt service (interest and principal) on such bonds in each

year and the name and address of the paying agent or paying agents for such bonds

or notes, and upon receipt of such certification, the Commissioner of Education shall

thereupon cause such records to be adjusted with respect to such bonds giving effect

to any increase or decrease resulting in any year as to payments on account of interest

on or principal of such bonds as shown by said certification of said chief financial

officer. Any certification by the Commissioner of Education with respect to bonds to the

effect that such bonds are entitled to the benefits of the provisions of this act

or as to amount payable in any year for debt service (principal and interest) on such

bonds shall be fully conclusive as to such bonds from and after the time of issuance

of such bonds, notwithstanding any irregularity, omission or failure as to compliance

with any of the provisions of this act with respect to such bonds, provided that such

bonds contain a recital to the effect that they are entitled to the benefits of the

provisions of this act, and all persons shall be forever estopped from denying that

such bonds are entitled to the benefits of the provisions of this act. (g) Any school district or municipality which has authorized bonds and which are entitled

to the benefits of this act, may issue temporary notes or loan bonds (hereinafter

called “obligations”) in anticipation of the issuance of permanent bonds to the extent

permitted or provided for by or pursuant to the provisions of Title 18A, Education,

of the New Jersey Statutes and any other laws applicable, in principal amount not

in excess of the principal amount of the permanent bonds and subject to such additional

terms or conditions with respect to such obligations as may be fixed or required by

the Commissioner of Education or the local finance board under authority of this act. The amount and details of any such obligations issued and the interest payable thereon

and the name and address of the paying agent or paying agents for such bonds or notes

shall be certified by the chief financial officer of such school district or municipality

to the Commissioner of Education. The whole or any part of the allocation then applicable to any school district pursuant

to this act is hereby authorized to be paid in any year in which such obligations

are outstanding and notwithstanding that permanent bonds have not been issued, pursuant

to such terms and conditions as may be determined by the Commissioner of Education,

for use and application of the amount so paid to the payment of interest on such obligations

and so much of the principal thereof in any such year as shall be determined by said

commissioner. The determination of the commissioner hereunder provided for shall be conclusive

as to such matters, and receipt of the amount of such allocation so paid shall be

used and applied only for the payment of the interest on the principal of such obligations

in accordance with such determination by said commissioner. (h) No bonds or notes entitled to the benefits of this act shall be issued unless

there is designated therefor a paying agent or paying agents, at least one of which

is a bank or trust company authorized to do business in this State. All amounts of additional State school building aid to be paid under the provisions

of this act with respect to any school district for debt service (principal and interest)

on bonds or notes entitled to the benefits of this act shall, on or before the date

for such payment of interest and principal, be paid on behalf of the school district

or municipality issuing such bonds or notes to the paying agent or paying agents for

such bonds or notes in amount with respect to such date as reflects the amount of

principal or interest, respectively, payable as to such date by reason of such additional

State school building aid hereunder payable with respect to such school district. Amounts so paid to such paying agent or paying agents shall be applied to the payment

of debt service (principal and interest) on such bonds or notes and for no other purpose. (i) Pending application to the purposes for which bonds or notes entitled to the benefits

of this act are issued, the proceeds of such bonds or notes shall be invested or deposited

subject to regulations prescribed by the State Treasurer. On January 10 in each year the custodian of school moneys of a Type II school district

or the chief financial officer of the municipality of a Type I school district, as

the case may be, shall certify and pay to the State Treasurer the amount of earnings

received during the preceding year from the investment or deposit of the proceeds

from the sale of such bonds or notes, which amounts shall be held by him and applied

only to the payment of principal and interest on such bonds or notes. 1

N.J.S.A. § 18A:1-1 et seq.