New Jersey § 58:11b-6

§ 58:11b-6.

a. Except as may be otherwise expressly provided in the provisions of P.L.1985, c.

334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ), the trust may from time to time issue its bonds, notes, or other obligations in

any principal amounts as in the judgment of the trust shall be necessary to provide

sufficient funds for any of its corporate purposes, including the payment, funding,

or refunding of the principal of, or interest or redemption premiums on, any bonds,

notes, or other obligations issued by it, whether the bonds, notes, or other obligations

or the interest or redemption premiums thereon to be funded or refunded have or have

not become due, the establishment or increase of reserves or other funds to secure

or to pay the bonds, notes, or other obligations or interest thereon and all other

costs or expenses of the trust incident to and necessary to carry out its corporate

purposes and powers. b. Whether or not the bonds, notes or other obligations of the trust are of a form

and character as to be negotiable instruments under the terms of Title 12A of the

New Jersey Statutes, the bonds, notes and other obligations are made negotiable instruments

within the meaning of and for the purposes of Title 12A of the New Jersey Statutes,

subject only to the provisions of the bonds, notes and other obligations for registration. c. Bonds, notes or other obligations of the trust shall be authorized by a resolution

or resolutions of the trust and may be issued in one or more series and shall bear

any date or dates, mature at any time or times, bear interest at any rate or rates

of interest per annum, be in any denomination or denominations, be in any form, either

coupon, registered or book entry, carry any conversion or registration privileges,

have any rank or priority, be executed in any manner, be payable in any coin or currency

of the United States which at the time of payment is legal tender for the payment

of public and private debts, at any place or places within or without the State, and

be subject to any terms of redemption by the trust or the holders thereof, with or

without premium, as the resolution or resolutions may provide. A resolution of the trust authorizing the issuance of bonds, notes or other obligations

may provide that the bonds, notes or other obligations be secured by a trust indenture

between the trust and a trustee, vesting in the trustee any property, rights, powers

and duties in trust consistent with the provisions of P.L.1985, c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ) as the trust may determine. d. Bonds, notes or other obligations of the trust may be sold at any price or prices

and in any manner as the trust may determine. Notwithstanding any provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq. , to the contrary, each bond, note , or other obligation of the trust, and each bond, note, or other obligation of a local government unit,

public water utility, or other person, issued to the trust to evidence the loan issued

to the trust, or, if applicable, issued to the State, acting by and through the Department

of Environmental Protection, to evidence a loan issued thereby, pursuant to subsection

a. of section 9 of P.L.1985, c. 334 ( C.58:11B-9 ), shall mature and be paid not later than 30 years for environmental infrastructure

projects, 45 years for combined sewer overflow projects, 31 years for transportation projects, aviation projects, and marine projects, and 30 years for hazard mitigation and resilience projects pursuant to sections 1

through 8 of P.L.2023, c. 63 ( C.58:11B-20.3 et al.), from the effective date thereof, or the certified useful life of the project or projects

to be financed by the bonds, notes, or other obligations, whichever is less, or a shorter period of time as may be applicable to any companion

loan made concurrently with the loan made by the trust and issued pursuant to federal law or regulation. Notwithstanding the provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq. , or this subsection, to the contrary, each bond, note, or other obligation of the trust, and each bond, note, or other obligation of a local government unit,

public water utility, or other person, issued to the trust to evidence the loan issued

to the trust, or, if applicable, issued to the State, acting by and through the Department

of Environmental Protection, to evidence a loan issued thereby, pursuant to subsection

a. of section 9 of P.L.1985, c. 334 ( C.58:11B-9 ), and issued in connection with funding provided pursuant to the “Water Infrastructure Finance and Innovation Act of 2014” (WIFIA), 33 U.S.C. s.3901 et seq., as amended and supplemented, the “Transportation Infrastructure Finance and Innovation Act of 1998” (TIFIA), 23 U.S.C. s.601 et seq., as amended and supplemented, or the “Safeguarding Tomorrow Through Ongoing Risk Mitigation (STORM) Act,” Pub.L. 116-284 ( 42 U.S.C. s. 5135 ), as amended or supplemented, shall mature and be paid not later than the maximum time period allowed by those

federal acts. All bonds of the trust shall be sold at public or private sale at the price or prices

and in the manner as the trust shall determine, either on a negotiated or on a competitive

basis. If competitively sold, bonds shall be sold after notice of sale, a summary of which

shall be published at least once in at least three newspapers published in the State

of New Jersey and at least once in a publication carrying municipal bond notices and

devoted primarily to financial news published in New Jersey or the city of New York,

the first summary notice to be at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any or all bids made

in pursuance thereof may be rejected. In the event of such rejection or of failure to receive any acceptable bid, the

trust, at any time within 60 days from the date of such advertised sale, may sell

such bonds at private sale upon terms not less favorable to the State than the terms

offered by any rejected bid. The trust may sell all or part of the bonds of any series as issued to any State

fund or to the federal government or any agency thereof, at private sale, without

advertisement. e. Bonds, notes or other obligations of the trust may be issued under the provisions

of P.L.1985, c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ) without obtaining the consent of any department, division, board, bureau or agency

of the State, and without any other proceedings or the happening of any other conditions

or things, other than those consents, proceedings, conditions or things which are

specifically required by P.L.1985, c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ). f. Bonds, notes or other obligations of the trust issued under the provisions of P.L.1985,

c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ) shall not be a debt or liability of the State or of any political subdivision thereof

other than the trust and shall not create or constitute any indebtedness, liability

or obligation of the State or any political subdivision, but all these bonds, notes

and other obligations, unless funded or refunded by bonds, notes or other obligations,

shall be payable solely from revenues or funds pledged or available for their payment

as authorized in P.L.1985, c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ). Each bond, note and obligation shall contain on its face a statement to the effect

that the trust is obligated to pay the principal thereof or the interest thereon only

from its revenues, receipts or funds pledged or available for their payment as authorized

in P.L.1985, c. 334 ( C.58:11B-1 et seq. ), P.L.1997, c. 224 ( C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 ( C.58:11B-10.3 through C.58:11B-10.5 , C.58:11B-20.2 , C.58:11B-22.3 , and C.58:11B-22.4 ), and that neither the State, nor any political subdivision thereof, is obligated

to pay the principal or interest and that neither the faith and credit nor the taxing

power of the State, or any political subdivision thereof, is pledged to the payment

of the principal of or the interest on the bonds, notes or other obligations. g. The aggregate principal amount of bonds, notes or other obligations, including

subordinated indebtedness of the trust, shall not exceed (1) $5,000,000,000 with respect

to bonds, notes, or other obligations issued to finance the Disaster Relief Emergency

Financing Program established pursuant to section 1 of P.L.2013, c. 93 ( C.58:11B-9.5 ), and (2) $5,000,000,000 with respect to bonds, notes, or other obligations issued for all other purposes

of the trust. In computing the foregoing limitations there shall be excluded all the bonds, notes

or other obligations, including subordinated indebtedness of the trust, which shall

be issued for refunding purposes, whenever the refunding shall be determined to result

in a savings. (1) Upon the decision by the trust to issue refunding bonds, except for current refunding,

and prior to the sale of those bonds, the trust shall transmit to the Joint Budget

Oversight Committee, or its successor, a report that a decision has been made, reciting

the basis on which the decision was made, including an estimate of the debt service

savings to be achieved and the calculations upon which the trust relied when making

the decision to issue refunding bonds. The report shall also disclose the intent of the trust to issue and sell the refunding

bonds at public or private sale and the reasons therefor. (2) The Joint Budget Oversight Committee or its successor shall have the authority

to approve or disapprove the sales of refunding bonds as included in each report submitted

in accordance with paragraph (1) of this subsection. The committee shall notify the trust in writing of the approval or disapproval within

30 days of receipt of the report. Should the committee not act within 30 days of receipt of the report, the trust

may proceed with the sale of the refunding bonds, provided that the sale of refunding

bonds shall realize not less than three percent net present value debt service savings. (3) No refunding bonds shall be issued unless the report has been submitted to and

approved by the Joint Budget Oversight Committee or its successor as set forth in

paragraphs (1) and (2) of this subsection. (4) Within 30 days after the sale of the refunding bonds, the trust shall notify the

committee of the result of that sale, including the prices and terms, conditions and

regulations concerning the refunding bonds, the actual amount of debt service savings

to be realized as a result of the sale of refunding bonds, and the intended use of

the proceeds from the sale of those bonds. (5) The committee shall review all information and reports submitted in accordance

with this subsection and may, on its own initiative, make observations to the trust,

or to the Legislature, or both, as it deems appropriate. h. Each issue of bonds, notes, or other obligations of the trust may, if it is determined

by the trust, be general obligations thereof payable out of any revenues, receipts

or funds of the trust, or special obligations thereof payable out of particular revenues,

receipts or funds, subject only to any agreements with the holders of bonds, notes

or other obligations, and may be secured by one or more of the following: (1) Pledge of revenues and other receipts to be derived from the payment of the interest

on and principal of notes, bonds or other obligations issued to the trust by one or

more local government units, public water utilities, or other persons, and any other payment made to the trust pursuant to agreements with any local government

units, public water utilities, or other persons, or a pledge or assignment of any notes, bonds, or other obligations of any local

government unit public water utilities, or other persons and the rights and interest of the trust therein; (2) Pledge of rentals, receipts and other revenues to be derived from leases or other

contractual arrangements with any person or entity, public or private, including one

or more local government units, public water utilities, or other persons, or a pledge or assignment of those leases or other contractual arrangements and the

rights and interest of the trust therein; (3) Pledge of all moneys, funds, accounts, securities and other funds, including the

proceeds of the bonds, notes or other obligations; (4) Pledge of the receipts to be derived from the payments of State aid, payable to

the trust pursuant to section 12 of P.L.1985, c. 334 ( C.58:11B-12 ); (5) A mortgage on all or any part of the property, real or personal, of the trust

then owned or thereafter to be acquired, or a pledge or assignment of mortgages made

to the trust by any person or entity, public or private, including one or more local

government units , public water utilities, or other persons, and the rights and interest of the trust therein. i. The trust shall not issue any bonds, notes or other obligations, or otherwise incur

any additional indebtedness, on or after June 30, 2033. j. (Deleted by amendment, P.L.1996, c. 88 ).