New Jersey § 18a:72a-78

§ 18a:72a-78.

a. The authority shall from time to time issue bonds, notes or other obligations in

an amount sufficient to finance the grants provided under this act and to finance

the administrative costs associated with the approval process and the issuance of

the bonds, notes, or other obligations, provided that the total outstanding principal amount of the bonds, notes or other obligations

shall not exceed $550,000,000, except that all administrative costs associated with the approval process and the

issuance of bonds shall not be included within the total aggregate principal amount

of bonds issued, and the term of any bond, note, or other obligation issued shall not exceed 30 years. In computing the foregoing limitation as to amount, there shall be excluded all

bonds, notes or other obligations which have been retired or which shall be issued

for refunding purposes, provided that the refunding is determined by the authority

to result in a debt service savings. The authority shall issue the bonds, notes or other obligations in such manner as

it shall determine in accordance with the provisions of P.L.1999, c. 217 ( C.18A:72A-72 et al.) and the “New Jersey educational facilities law,” N.J.S.18A:72A-1 et seq. , provided that no bonds, notes or other obligations shall be issued pursuant to this

section without the prior written consent of the State Treasurer. b. The State Treasurer is hereby authorized to enter into a contract with the authority

pursuant to which the State Treasurer, subject to available appropriations, shall

pay the amount necessary to pay the principal and interest on bonds, notes and other

obligations of the authority issued pursuant to this act plus any amounts payable

in connection with an agreement authorized under subsection e. of this section. The authority shall enter into a contractual agreement with each institution receiving

a capital improvement fund grant, and the agreements shall be approved by a resolution

of the authority. All agreements with the four-year public institutions of higher education shall

include provisions as may be necessary to insure that each institution pays an amount

equal to one-third of the amount necessary to pay the principal and interest on the

bonds, notes and other obligations of the authority issued pursuant to this section

to finance the projects approved at the institution plus its share of any amounts

payable in connection with an agreement authorized under subsection e. of this section. All agreements with the four-year private institutions of higher education shall

include provisions as may be necessary to insure that each institution pays an amount

equal to one-half of the amount necessary to pay the principal and interest on the

bonds, notes and other obligations of the authority issued pursuant to this section

to finance the projects approved at the institution plus its share of any amounts

payable in connection with an agreement authorized under subsection e. of this section. Upon receipt of the moneys from the public or private institutions of higher education,

the authority shall apply the moneys in a manner specified in the contract with the

State Treasurer. c. Bonds, notes or other obligations issued pursuant to this act shall not be in any

way a debt or liability of the State or of any political subdivision thereof other

than the authority and shall not create or constitute any indebtedness, liability

or obligation of the State or of any political subdivision thereof, or be or constitute

a pledge of the faith and credit of the State or of any political subdivision thereof,

but all bonds, notes or other obligations, unless funded or refunded by the bonds,

notes or other obligations of the authority, shall be payable solely from revenues

of funds pledged or available for their payment as authorized by this act. Each bond, note or other obligation shall contain on its face a statement to the

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

if any, or the interest thereon only from revenue or funds of the authority, 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 of 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. d. The State of New Jersey does hereby pledge to and covenant and agree with the holders

of any bonds, notes or other obligations issued pursuant to the authorization of P.L.1999, c. 217 ( C.18A:72A-72 et al.) that the State shall not limit or alter the rights or powers hereby vested

in the authority to perform and fulfill the terms of any agreement made with the holders

of the bonds, notes or other obligations, or to fix, establish, charge and collect

such rents, fees, rates, payments, or other charges as may be convenient or necessary

to produce sufficient revenues to meet all expenses of the authority and to fulfill

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

together with interest thereon, with interest on any unpaid installments of interest,

and all costs and expenses in connection with any action or proceedings by or on behalf

of the holders, until the bonds, notes and other obligations, together with interest

thereon, are fully met and discharged or provided for. e. In connection with any bonds or refunding of bonds issued pursuant to this section,

the authority may also enter into any revolving credit agreement; agreement establishing

a line of credit or letter of credit; reimbursement agreement; interest rate exchange

agreement; currency exchange agreement; interest rate floor cap, option, put or

call to hedge payment, currency, rate, spread or similar exposure, or similar agreement;

float agreement; forward agreement; insurance contract; surety bond; commitment

to purchase or sell bonds; purchase or sale agreement; or commitment or other contract

or agreement or other security agreement approved by the authority.