New Jersey § 40a:3-4

§ 40a:3-4.

a. Bonds issued by any municipality pursuant to provisions of this act shall be “qualified

bonds” and shall be entitled to the benefit of the provisions of this act. b. Whenever the governing body of a municipality determines, by passage of a bond

ordinance upon first reading, to issue bonds for any lawful purpose, it may file an

application and a certified copy of the ordinance as passed on first reading with

the Local Finance Board to qualify the bonds pursuant to the provisions of this act. Upon receipt of any such application, the Local Finance Board shall cause an investigation to be made, taking into consideration such factors as

the need for the facilities to be financed from the proceeds of such proposed qualified

bonds, the ability of the municipality to supply other essential public improvements

and services and during the ensuing 10 years to pay punctually the principal and interest

on its debts, the reasonableness of the amounts to be expended for each of the purposes

or improvements to be financed pursuant to such bonds, and such other factors as the Local Finance Board may deem necessary. c. If such investigation shows to the satisfaction of the Local Finance Board that such municipality should be entitled to issue qualified bonds pursuant to the

provisions of this act, the Local Finance Board may by resolution determine that such municipality is entitled to issue qualified

bonds. In considering any ordinance submitted to it and before endorsing its consent thereon,

the Local Finance Board may require the governing body of any municipality to adopt resolutions restricting

or limiting any future proceedings with respect to the authorization of bonds or other

matters deemed by the Local Finance Board to affect any estimate made or to be made by it in accordance with subsection b. of this section . Every resolution so adopted shall constitute a valid and binding obligation of such

municipality running to and enforceable by, and releasable by the Local Finance Board . d. Within 60 days after the submission to it of an application made in accordance

with subsection b. of this section, the Local Finance Board shall cause its consent to be endorsed upon the ordinance authorizing the issuance

of qualified bonds, if it shall be satisfied and record by resolution that the municipality

is entitled to issue qualified bonds. If the Local Finance Board is not so satisfied, it shall cause its disapproval to be endorsed upon such ordinance

within said period of 60 days. e. If the governing body of a municipality shall determine by resolution that a maturity

schedule for its qualified bonds, other than the maturity schedule approved by the Local Finance Board pursuant to subsection c. of this section , is in the best interest of said municipality, it may make application to the Local Finance Board setting forth such belief and the grounds therefor and requesting approval of a schedule

of maturities for such qualified bonds set forth in the application. Within 60 days after submission to the Local Finance Board of such application, the Local Finance Board shall cause its approval to be endorsed thereon if it shall be satisfied, and shall

record by resolution its findings, that the belief set forth in such application is

well founded and that the issuance of the bonds pursuant to the revised maturity schedule

in such application would not materially impair the credit of the municipality or

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

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

services. 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. f. A municipality that has issued qualified bonds shall not be required to obtain

the approval of the Local Finance Board prior to issuing any other bonds solely by

reason of having previously issued qualified bonds, unless such approval is otherwise

required by law.