New Jersey § 18a:71a-22

§ 18a:71a-22.

a. The State of New Jersey does pledge to and agree with the holders of the bonds,

notes and other obligations issued pursuant to authority contained in this act and N.J.S.18A:71A-8 , that the State will not limit the power and obligation of the authority to fulfill

the terms of any agreements made with the holders of bonds, notes and other obligations

so issued, or in any way impair the rights or remedies of the holders of the bonds,

and will not modify in any way the exemptions for taxation provided for in this act,

until the bonds, notes and other obligations together with interest thereon, are fully

paid and discharged. The authority as a public body corporate and politic shall have the right to include

the pledge herein made in its bonds and contracts. b. Unless otherwise determined by the authority, all bonds, notes or other obligations

issued pursuant to this act are hereby declared to be issued by a body corporate and

politic of this State and for an essential public and governmental purpose. The bonds, notes and other obligations, and the interest thereon and the income

therefrom, and all fees, charges, funds, revenues, income and other moneys pledged

or available to pay or secure the payment of the bonds, notes or other obligations,

or interest thereon, shall at all times be exempt from taxation except for transfer,

inheritance and estate taxes. c. With respect to all or any portion of any issue of any bonds, notes or other obligations

that the authority may issue in accordance with this act, the authority may covenant,

elect and consent that the interest on the bonds be includable under the federal Internal

Revenue Code of 1986, as amended, in the gross income of the holders of the bonds

to the same extent and in the same manner that the interest on bills, bonds, notes

or other obligations of the United States is includable in the gross income of the

holders under the federal Internal Revenue Code of 1986, as amended, or in such other

manner as the authority may covenant, elect and consent. Bonds issued pursuant to this act are not subject to any limitations or restrictions

of any law that may limit the authority's power to issue those bonds.