New Jersey § 55:14k-51

§ 55:14k-51.

a. The agency is hereby authorized to contract with institutional lenders to guarantee

on behalf of a housing developer the repayment of the full principal balance of that

loan outstanding at the time of any default, if (1) the loan was made for construction

costs as defined in section 3 of this act; 1 (2) the amount of the loan and the terms on which it was made conform substantially

to the amount and terms then available to the borrower on such a construction loan;

and (3) the regulations of the agency pursuant to subsection c. of this section are

complied with. b. The agency shall establish within the fund sufficient reserves and liquid reserves,

aside from those moneys required to meet payments of interest and repayments of principal

on bonds issued pursuant to section 4 of this act, 2 to provide a sufficient and actuarially sound basis for its pledges contained in

any guarantee contract entered into pursuant to subsection a. of this section. c. The agency shall adopt rules and regulations governing the issuance of loan guarantees

pursuant to this section, including: (1) procedures for the submission of requests for such guarantees; (2) standards and requirements governing the allocation of guarantees to applicant

institutional lenders, and determining the fees to be charged therefor and the manner

of payment of those fees; (3) restrictions as to the maturities and interest rates of any loan, or the return

realized therefrom by the institutional lender, upon which a guarantee is to be issued; (4) requirements as to commitments by institutional lenders with respect to loans

upon which guarantees may be issued; and (5) any other matters related to the duties and the exercise of the powers of the

agency under this section. 1

N.J.S.A. § 55:14K-47. 2

N.J.S.A. § 55:14K-48.