New Jersey § 40a:12a-67

§ 40a:12a-67.

a. The municipality may issue bonds itself in the manner provided for herein or pursuant

to the “Local Redevelopment and Housing Law,” P.L.1992, c. 79 ( C.40A:12A-1 et seq. ) or may apply to an authority to issue bonds, regardless of whether the redevelopment project is undertaken

under municipal authority pursuant to P.L.1991, c. 431 ( C.40A:20-1 et seq. ) or by a State entity redeveloper pursuant to a State entity redevelopment agreement,

which in any case may be secured by payments in lieu of taxes or special assessments

or both or a portion thereof, by the adoption of a resolution or ordinance, as applicable,

of the governing body of the municipality, authority , or State entity to that effect. b. A municipality that has designated a redevelopment area or in which a redevelopment

project is undertaken by a State entity redeveloper pursuant to a State entity redevelopment

agreement may, by resolution of its governing body, if it determines to issue bonds

through an authority, enter into contracts with the authority relating to that redevelopment

project, or to act as a redeveloper or to finance or refinance a redevelopment project

undertaken by a State entity redeveloper pursuant to a State entity redevelopment

agreement within a redevelopment area. A resolution so adopted shall contain findings and determinations of the governing

body: (1) that all or a portion of the redevelopment project undertaken within the

municipality will result in the redevelopment of the municipality; and, (2) that

the contract with the authority or, to the extent applicable, the financial agreement

with the State entity redeveloper, is a necessary or important inducement to the undertaking

of the project or the redevelopment project undertaken by the State entity redeveloper

in that it makes the financing thereof feasible. The contract or contracts, or the terms of any bonds issued directly by a municipality

may provide for the assignment, for the benefit of bondholders, of all or any portion

of payments in lieu of taxes, or special assessments, or both , and may further provide that the State entity redeveloper may use, access, or draw

upon bond proceeds to pay costs of the redevelopment project. These contracts may be made and entered into for a term beginning currently or at some future or

contingent date, and with or without consideration, and for a specified or unlimited

time, and on any terms and conditions which may be requested by the municipality and,

to the extent applicable, the State entity redeveloper, and, if applicable, as may

be agreed to by the authority and, to the extent applicable, the State entity redeveloper,

in conformity with its contracts with the holders of bonds, and shall be valid and

binding on the municipality. The municipality is hereby authorized and directed to do and perform any contract

so entered into by it and to provide for the discharge of any obligation thereunder

in the same manner as other obligations of the municipality. Any contract, and any instrument making or evidencing the same, may be pledged or

assigned by the authority, with the consent of the municipality executing the contract,

and, to the extent applicable, the consent of the State entity redeveloper, to secure

its bonds and thereafter may not be modified except as provided by the terms of the

instrument or by the terms of the pledge or assignment. The municipality may include in the terms of a bond or contract, including a financial

agreement, a provision that the payments in lieu of taxes or special assessments shall

constitute a municipal charge for the purposes of R.S.54:4-66 . c. The payments in lieu of taxes or special assessments, or both, may be assigned

directly by the municipality or the authority to the trustee for the bonds as payment or security for the bonds. Notwithstanding any law to the contrary, the assignment shall be an absolute assignment

of all the municipality's right, title, and interest in the payment in lieu of taxes

or special assessments, or both, or portion thereof, along with the rights and remedies

provided to the municipality under the agreement including, but not limited to, the

right of collection of payments due. Any interest that is subject to the lien established under the “Redevelopment Area

Bond Financing Law” shall not be transferred, conveyed, assigned, disposed of, or

sold, whether by tax sale or otherwise, free and clear of the financial agreement

and any payments in lieu of taxes due thereunder while bonds are secured thereby,

regardless of the consent of the parties or order of any court, whether in law or

in equity, unless any such transfer or conveyance is provided for under the terms

and conditions set forth in the bond resolution or bond ordinance, as applicable. Any purchaser, transferee, successor, grantee, or assignee of such interest, whether

at tax sale or otherwise, shall take title to such interest subject to the obligations

imposed by the financial agreement. Payments in lieu of taxes and special assessments assigned as provided hereunder

shall not be included in the general funds of the municipality, nor shall they be

subject to any laws regarding the receipt, deposit, investment , or appropriation of public funds and shall retain such status notwithstanding enforcement

of the payment or assessment by the municipality or assignee as provided herein. The municipality shall be a “ person ” within the meaning of that term as defined in section 3 of P.L.1974, c. 80 ( C.34:1B-3 ); and the purpose described in this section shall be a “ project ” within the meaning of that term as defined in section 3 of P.L.1974, c. 80 ( C.34:1B-3 ). d. Notwithstanding the provisions of subsection g. of section 37 of P.L.1992, c. 79 ( C.40A:12A-37 ), the bonds issued pursuant to this section may be issued as non-recourse obligations,

and unless otherwise provided for by a separate action of the municipality to guarantee

such bonds or otherwise provide for a pledge of the municipality's full faith and

credit shall not, except for such action, be considered to be direct and general obligations

of the municipality, and, absent such action, the municipality shall not be obligated

to levy and collect a tax sufficient in an amount to pay the principal and interest

on the bonds when the same become due and payable. The provisions of the “Local Government Supervision Act (1947),” P.L.1947, c. 151

( C.52:27BB-1 et seq. ) shall not apply to any bonds issued or authorized pursuant to this section and those

bonds shall not be considered gross debt of the municipality on any debt statement

filed in accordance with the “Local Bond Law,” N.J.S.40A:2-1 et seq. , unless those bonds were guaranteed by the municipality, and the provisions of chapter 27 of Title 52 of the Revised Statutes shall not apply

to such bonds. e. The proceeds from the sale of bonds and any funds provided by any department of

the State, authority created by the State , or bi-state authority , for the purposes described in the “Redevelopment Area Bond Financing Law,” sections

1 through 10 of P.L.2001, c. 310 ( C.40A:12A-64 et seq. ) or for the purpose of financing or refinancing a redevelopment project pursuant

to a State entity redevelopment agreement, shall not require compliance with public

bidding laws, including the “Local Public Contracts Law,” P.L.1971, c. 198 ( C.40A:11-1 et seq. ), or any other statute where the redeveloper or State entity redeveloper, as the

case may be, shall undertake the redevelopment project. The use of these funds shall be subject to public accountability and oversight by

the issuer of those bonds, regardless of whether the municipality, agency , or authority provides the funds. f. In order to provide additional security for any loan to a redeveloper or a State

entity redeveloper, as the case may be, or to bonds issued to finance a redevelopment

project, regardless of whether that redevelopment project is undertaken under municipal

authority pursuant to P.L.1991, c. 431 ( C.40A:20-1 et seq. ) or by a State entity redeveloper pursuant to a State entity redevelopment agreement,

the municipality may utilize powers otherwise provided by law, including the “Local

Redevelopment and Housing Law,” P.L.1992, c. 79 ( C.40A:12A-1 et seq. ), to provide for any extension of the municipality's credit to any redeveloper or

State entity redeveloper, as the case may be, or its full faith and credit which may

include a full faith and credit lease as security for the bonds or any loan to a redeveloper

or State entity redeveloper, as the case may be. To the extent that the municipality provides for a full faith and credit guarantee

of any loan to a redeveloper or State entity redeveloper, as the case may be, or any

bonds, but determines not to authorize the issuance of bonds or notes to provide for

the funding source thereof, or otherwise determines to enter into a full faith and

credit lease, it may do so by an ordinance introduced, adopted, and published in accordance

with the provisions of N.J.S.40A:2-17 and N.J.S.40A:2-19 . Such ordinance shall take effect 20 days after the first publication of the ordinance

or of a summary thereof after final adoption. To the extent that bonds or notes are authorized as provided above, such bonds or

notes shall be authorized pursuant to the provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq. , and shall be deductible from the gross debt of the municipality until such time

as such bonds or notes are actually issued, and only up to the amount actually issued,

to fund such guarantee. g. A bond, issued in accordance with the “Redevelopment Area Bond Financing Law,” sections

1 through 10 of P.L.2001, c. 310 ( C.40A:12A-64 et seq. ) , whether issued by a municipality or an authority, that is secured in whole or in

part by payments in lieu of taxes or by special assessments, or both, as provided

herein shall be subject to the review and approval of the board. That review and approval shall be made prior to approval of an ordinance or a resolution, as may be required by the law pursuant to which the

bonds are issued . The board shall be entitled to receive from the applicant an amount sufficient to

provide for all reasonable professional and other fees and expenses incurred by it

for the review, analysis , and determination with respect thereto. As part of its review, the board shall specifically solicit comments from the Office

of State Planning and the New Jersey Economic Development Authority in addition to

comments from the public. The Department of Community Affairs, Office of Local Planning Services, shall provide comments on whether the redevelopment project or plan promotes congestion

reduction, enhanced mobility, further redevelopment, and otherwise improves the quality

of life of residents. As part of the board's review and approval, it shall consider the comments submitted

and whether the issuance of the redevelopment area bond will adversely impact the

financial stability of the municipality or service area of the authority. h. A municipality that has assigned any portion of the payments in lieu of taxes it

receives pursuant to a financial agreement, as payment or security for bonds, may

also pledge a portion of those payments in lieu of taxes as payment or security for

bonds in order to finance or refinance any cost or expense of the municipality, State

entity or authority. i. In the case of a municipality which is otherwise subject to tax or revenue sharing

pursuant to law and which assigns a portion of the payments in lieu of taxes or special

assessments pursuant to a financial agreement to secure bonds issued by the municipality

or the authority, the assigned portion of those payments in lieu of taxes or special

assessments shall not be considered part of the tax or revenue sharing formula or

calculation of municipal revenues for the purpose of determining whether that municipality

is obligated to make payment to, or receive a credit from, any tax sharing or revenue

sharing pool. j. Notwithstanding any law to the contrary, including subsection a. of section 3 of P.L.2001, c. 310 ( C.40A:12A-66 ), payments in lieu of taxes pursuant to a financial agreement to secure bonds may

be established in such amounts as shall be sufficient to pay the principal of, redemption

premium, if any, and interest on the bonds. k. Notwithstanding any law to the contrary, in the event that bonds shall be issued

that are secured by payments in lieu of taxes pursuant to a financial agreement, the

financial agreement shall not be terminated for any reason during the period that

the bonds are outstanding, except that this provision shall not be construed to prejudice

the rights and remedies afforded a municipality or authority under the terms of the

financial agreement where other parties are in violation of the terms of the agreement.