New Jersey § 40a:5a-20

§ 40a:5a-20.

Notwithstanding the provisions of any other law to the contrary, the governing body

of a local unit which has established an authority shall have the power and is authorized

by ordinance in the case of a municipality, and ordinance or resolution, as appropriate,

in the case of a county, to dissolve the authority, except that the ordinance or resolution,

as the case may be, shall be approved by the Local Finance Board prior to adoption. Any authority established by more than one municipality or county may be dissolved

by the adoption of parallel ordinances or resolutions, as appropriate. The Local Finance Board shall approve the dissolution if it finds that the ordinance

or resolution makes adequate provision in accordance with a bond resolution or otherwise

for the payment of all creditors or obligees of the authority and that adequate provision

is made for the assumption of those services provided by the authority which are necessary

for the health, safety and welfare of the recipients of those services. The ordinance or resolution shall be introduced and adopted in the manner provided

by law, shall take effect immediately after final adoption, and shall not be subject

to referendum. A copy of the ordinance or resolution as adopted shall be filed immediately with

the Local Finance Board and with the Secretary of State. In the event that an authority has obligations outstanding at the time of the taking

effect of the ordinance or resolution to dissolve the authority, the local unit or

units dissolving the authority are authorized to either issue obligations in furtherance of the dissolution or assume the responsibility for and payment of the obligations of the authority being

dissolved; if an authority created by a local unit or units is dissolved and has

obligations outstanding at the time that the ordinance or resolution to dissolve the

authority takes effect, an existing authority which serves the same local unit or

units, or that serves one of the local units which is served by the authority being

dissolved, is authorized to issue obligations in furtherance of the dissolution or

to assume the responsibility for and payment of the obligations of the authority being

dissolved, as provided in this section. No such assumption of responsibility for and payment of the obligations of the

dissolved authority shall be effective, however, until the local unit or units or

the existing authority proposing to undertake such assumption determines, by resolution

of the governing body setting forth facts that constitute the basis for the determination,

that such assumption will be a cost effective means of meeting those obligations as

compared with the issuance of obligations of the local unit or units, or of the existing

authority, and transmits a certified copy of that resolution to the Local Finance

Board. An ordinance or resolution dissolving an authority shall designate which local unit

or units or which authority, as the case may be, will assume the outstanding debt,

and no such ordinance or resolution including a provision for assumption of responsibility

for and payment of that outstanding debt by the local unit or units or existing authority

shall take effect until there shall have been a public hearing, conducted by the governing

body pursuant to the “Open Public Meetings Act,” P.L. 1975, c. 231 ( C.10:4-6 et seq. ), on the question of such assumption 1 Any obligations issued in furtherance of dissolution shall have a period of usefulness not exceeding 40 years from the date of issuance. The assumption by the local unit of the obligations of the authority sought to be dissolved

for which the local unit is not the guarantor or any bonds to be issued in furtherance of a dissolution shall be authorized by a bond ordinance to be introduced and adopted in accordance

with the provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq. , except for the provisions of sections 40A:2-11 , 40A:2-26 , 40A:2-27 and 40A:2-31 of the New Jersey Statutes , and except that the bond ordinance shall take effect immediately after final adoption

and shall not be subject to referendum. The bonds or other indebtedness for which the responsibility and payment is assumed may be deducted from the gross debt of the local unit by action of the Local Finance

Board in accordance with subsection d. of N.J.S.40A:2-7 . Notwithstanding any of the provisions of the “Local Bond Law” regarding the sale of

bonds, bonds issued for this purpose shall be sold under the direction and supervision of the

Local Finance Board on terms prescribed by the Local Finance Board , and may be sold at either public or private sale as the board shall prescribe. Notwithstanding the provisions of any other law, rule or regulation to the contrary,

if in order to make adequate provision for the payment of outstanding obligations

of an authority being dissolved, the local unit or authority determines, with the

approval of the Local Finance Board, to assume the responsibility and payment of the

obligations of such authority, the local unit or authority, as the case may be, is

hereby authorized, for so long as any bonds issued by the authority being dissolved

remain outstanding, to exercise directly all of the powers of such authority, as if

it had not been dissolved including the power and authority to assume the responsibility

and payment of such outstanding obligations on the same terms and conditions as the

outstanding authority obligations and to exercise all rights under any law, including

the right to create pledges of revenue or create liens on property or grant security

interests as appropriate and necessary to comply with the terms of the bond indenture

or to assure that the security of the holders of such authority obligations shall

not be adversely affected by the assumption of such obligations by the local unit

or authority. Nothing contained in this section or in this act shall limit the powers accorded under

any other law to any county or municipality to dissolve any authority which it has

created or of which it has joined in the creation, nor limit any general reorganization

powers accorded under law to any county or municipality to alter or abolish its agencies,

but the provisions of this section and this act shall be supplementary to the powers

accorded under any other law. 1

So in original.