New Jersey § 34:1b-21

§ 34:1b-21.

Notwithstanding the provisions of any law, rule, regulation or order to the contrary: a. The authority shall have the power, pursuant to and in accordance with the provisions

of this act and P.L.1974, c. 80 ( C.34:1B-1 et seq. ), to issue bonds and refunding bonds, incur indebtedness and borrow money secured,

in whole or in part, by money received pursuant to this act for the purpose of providing

funds: (1) for deposit into the Motor Vehicle Surcharges Securitization Proceeds Fund; (2) in the case of refunding bonds, to apply to the refunding, purchase or payment

of any bonds issued pursuant to this act; (3) to fund any capitalized interest on such bonds or refunding bonds; (4) to fund any reserve or other fund as may be established by the authority for such

bonds or refunding bonds and to further secure such bonds and refunding bonds as may

be determined by the authority; and (5) to pay all costs, fees and other expenses related to, or incurred by the authority

or the State in connection with, the issuance of such bonds or refunding bonds. b. The authority may, in any resolution authorizing the issuance of bonds or refunding

bonds issued by the authority pursuant to this act, or the execution and delivery

of any agreement authorized pursuant to subsection c. of this section, pledge the

amounts from time to time on deposit in the Motor Vehicle Surcharges Revenue Fund

and any contract entered into with the State Treasurer pursuant to section 7 of this

act, 1 or any part thereof, to secure the payment, purchase or redemption of the bonds or

refunding bonds issued pursuant to this act or any obligations of the authority under

any agreement entered into pursuant to subsection c. of this section, and covenant

as to the use and disposition of money on deposit in the Motor Vehicle Surcharges

Revenue Fund for payments of bonds and refunding bonds. All costs, fees and other expenses related to, or incurred by the authority or the

State in connection with, the issuance of bonds or refunding bonds by the authority

for the purposes set forth in this act may be paid by the authority from amounts it

receives from the proceeds of the bonds or refunding bonds and from amounts it receives

pursuant to sections 5 and 7 of this act, section 7 of P.L.1994, c. 57 ( C.34:1B-21.7 ) and section 12 of P.L.1994, c. 57 ( C.34:1B-21.12 ), which costs, fees and other expenses may include, but are not limited to, any initial

or annual administrative costs and fees of the authority attributable to any bonds

or refunding bonds issued pursuant to this act, all legal, accounting, trustee or

other professional fees, costs and expenses, all other costs, fees and expenses (including,

but not limited to, termination payments) attributable to any agreement, contract

or other commitment described in subsection c. of this section and any required rebate

or other payment to the United States of America. The bonds or refunding bonds shall be authorized by resolution adopted by the authority,

which shall stipulate the manner of execution and form of the bonds, whether the bonds

or refunding bonds are to be issued in one or more series, the date or dates of issue,

time or times of maturity, which shall not exceed 40 years, the rate or rates of interest

payable on the bonds, which may be at fixed rates or variable rates, and which interest

may be current interest or may accrue, the denomination or denominations in which

the bonds are issued, conversion or registration privileges, the sources and medium

of payment and place or places of payment, terms of redemption, privileges of exchangeability

or interchangeability, and entitlement to priorities of payment or security in the

amounts to be received by the authority pursuant to sections 5 and 6 of this act. The bonds may be sold at a public or private sale at a price or prices determined

by the authority. The authority is authorized to enter into any agreements necessary or desirable

to effectuate the purposes of this section, including agreements to sell bonds or

refunding bonds to any person and to comply with the laws of any jurisdiction relating

thereto. c. In connection with any bonds or refunding bonds issued or to be issued pursuant

to this act, 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 or cap,

options, puts or calls to hedge payment, currency, rate, spread or similar exposure,

or similar agreements, float agreements, forward agreements, insurance contract, surety

bond, commitment to purchase or sell bonds, purchase or sale agreement, or commitments

or other contracts or agreements and other security agreements approved by the authority. d. No resolution adopted by the authority authorizing the issuance of bonds or refunding

bonds pursuant to this act shall be adopted or otherwise made effective without the

approval in writing of the State Treasurer. Except as provided by subsection i. of section 4 of P.L.1974, c. 80 ( C.34:1B-4 ), bonds or refunding bonds may be issued without obtaining the consent of any department,

division, commission, board, bureau or agency of the State, other than the approval

as required by this subsection, and without any other proceedings or the occurrence

of any other conditions or other things other than those proceedings, conditions or

things which are specifically required by this act. e. Bonds and refunding bonds issued by the authority pursuant to this act shall be

special and limited obligations of the authority payable from, and secured by, such

funds and moneys determined by the authority in accordance with this section. Neither the members of the authority nor any other person executing the bonds or

refunding bonds shall be personally liable with respect to payment of interest and

principal on these bonds or refunding bonds. Bonds or refunding bonds issued pursuant to the provisions of this act shall not

be a debt or liability of the State or any agency or instrumentality thereof, other

than a special and limited obligation of the authority, either legal, moral or otherwise,

and nothing contained in this act shall be construed to authorize the authority to

incur any indebtedness on behalf of or in any way to obligate the State or any political

subdivision thereof, other than the authority, and all bonds and refunding bonds issued

by the authority shall contain a statement to that effect on their face. f. The authority is authorized to engage, subject to the approval of the State Treasurer

and in such manner as the State Treasurer shall determine, the services of bond counsel,

financial advisors and experts, placement agents, underwriters, trustees, verification

agents, remarketing agents, auction agents, broker-dealers, appraisers, and such other

advisors, consultants and agents as may be necessary to effectuate the purposes of

this act. g. All bonds or refunding bonds issued by the authority pursuant to this act are deemed

to be issued by a body corporate and politic of the State for an essential governmental

purpose, and the interest thereon and the income derived from all funds, revenues,

incomes and other moneys received for or to be received by the authority and pledged

and available to pay or secure the payment of bonds or refunding bonds and the interest

thereon, shall be exempt from all taxes levied pursuant to the provisions of Title

54 of the Revised Statutes or Title 54A of the New Jersey Statutes, except for transfer

inheritance and estate taxes levied pursuant to Subtitle 5 of Title 54 of the Revised

Statutes. h. The State hereby pledges and covenants with the holders of any bonds or refunding

bonds issued pursuant to the provisions of this act, that it will not limit or alter

the rights or powers vested in the authority by this act, nor limit or alter the rights

or powers of the State Treasurer in any manner which would jeopardize the interest

of the holders or any trustee of such holders, or inhibit or prevent performance or

fulfillment by the authority or the State Treasurer with respect to the terms of any

agreement made with the holders of these bonds or refunding bonds or agreements made

pursuant to subsection c. of this section, except that the failure of the State Legislature

to appropriate moneys for any purpose of this act shall not be deemed a violation

of this section. i. Notwithstanding any restriction contained in any other law, rule, regulation or

order to the contrary, the State and all political subdivisions of this State, their

officers, boards, commissioners, departments or other agencies, all banks, bankers,

trust companies, savings banks and institutions, building and loan associations, saving

and loan associations, investment companies and other persons carrying on a banking

or investment business, all insurance companies, insurance associations and other

persons carrying on an insurance business, and all executors, administrators, guardians,

trustees and other fiduciaries, and all other persons whatsoever who now are or may

hereafter be authorized to invest in bonds or other obligations of the State, may

properly and legally invest any sinking funds, moneys or other funds, including capital,

belonging to them or within their control, in any bonds or refunding bonds issued

by the authority under the provisions of this act; and said bonds and refunding bonds

are hereby made securities which may properly and legally be deposited with, and received

by any State or municipal officers or agency of the State, for any purpose for which

the deposit of bonds or other obligations of the State is now, or may hereafter be,

authorized by law. 1

L.2004, c. 70 (N.J.S.A. § 34:1B-21.29).