New Jersey § 52:27d-363

§ 52:27d-363.

a. The department is authorized, upon application of any volunteer emergency service

organization, to make loans for the following purposes: (1) For establishing or modernizing emergency facilities. The amount of a loan for this purpose shall not exceed 50% of the total cost or

$50,000.00, whichever is less. The notarized financial statement filed pursuant to subsection d. of this section

shall show that the applicant has available 20% of the total cost of the emergency

facilities in unobligated funds. Proceeds of the loan shall be used only for purposes of land acquisition or construction,

and shall not be used for payment of fees for design, planning, preparation of applications,

or any other cost not directly attributable to land acquisition or construction. (2) For purchasing emergency vehicles. The amount of a loan for this purpose shall not exceed $50,000.00 for any individual

item, or 50% of the total cost, whichever is less. The notarized financial statement filed pursuant to subsection d. of this section

shall show that the applicant has available 20% of the total cost of the emergency

vehicle in unobligated funds. (3) For purchasing emergency equipment. The amount of a loan for this purpose shall not exceed $10,000.00. No volunteer emergency service organization shall receive a loan under this paragraph

more than once in any five-year period. (4) For refinancing of debt incurred or contracts entered into and used for the purchase

or modernization of emergency facilities, emergency equipment or emergency vehicles. The amount of a loan under this paragraph shall be limited to the monetary limitations

as provided in paragraphs (1), (2) and (3) of this subsection. (5) For repair or rehabilitation of existing emergency vehicles or equipment when

it has been determined that the standards of the National Fire Protection Association

(NFPA) are no longer met, and that the repair or rehabilitation, or both, will bring

the vehicle or equipment into compliance with NFPA standards. Loans for the repair or rehabilitation of emergency vehicles or equipment shall

be for not less than $1,000.00 nor more than $35,000.00; nor shall a loan exceed

80% of the total cost of repair or rehabilitation. (6) Purchasing of used emergency equipment or used emergency vehicles, provided, however,

that the used equipment or vehicles shall meet the National Fire Protection Association's

standards. (7) Except as provided in paragraph (4) of this subsection, loan proceeds shall not

be used for operating expenses. b. The criteria on which the department shall base its determinations on loan applications

shall include, but not be limited to, the following: the relative financial need

and resources of the applicants, the information included in the application described

in subsection d. of this section, and whether the purpose of the loan is consistent

with the recommendations included in the National Fire Protection Association's “Fire

Protection Handbook” regarding public fire protection, particularly the evaluation

and planning of public fire protection, including demographic and geographical factors. c. Any loan in excess of $10,000.00 shall be for a period of not more than 10 years,

and any loan in the amount of $10,000.00 or less shall be for a period of not more

than five years. Loans shall be subject to the payment of interest at 2% per annum and shall be subject

to security as determined by the department. The total amount of interest earned by the investment or reinvestment of all or

any part of the principal of any loan shall be returned to the department and transferred

to the Volunteer Emergency Service Organizations Loan Fund, and shall not be credited

as payment of principal or interest on the loan. The minimum amount of any loan shall be $1,000.00. d. Every application for a loan under this act shall be accompanied by a notarized

financial statement of the volunteer service organization and a financial plan showing

the amount of assets and projected revenues for the repayment of the loan and any

other obligations and operating expenses over the period of the loan. Every application shall show the total costs of the item to which the loan will

be applied and how they are to be met by the emergency service organization. If a volunteer emergency service organization is unable to meet the 20% requirement

of paragraphs (1) and (2) of subsection a., then a political subdivision which is

served by the volunteer company may pledge its credit in the amount of funds necessary

to satisfy the 20% requirement and, if it does so, shall cosign the application submitted

by the volunteer emergency service organization. e. A volunteer emergency service organization shall be eligible for a loan under this

act regardless of legal ownership in whole or part by any political subdivision of

any emergency facilities, equipment or vehicles used by the volunteer emergency service

organization. Any emergency vehicles, equipment or facilities financed under this act may be transferred

to a political subdivision served by the volunteer emergency service organization

and shall be subject to security as shall be determined by the department.