New Jersey § 58:25-9

§ 58:25-9.

Whenever any local governmental unit, pursuant to an order or in the case of a municipality

in a county of the first class, pursuant to an order or written approval of the Department

of Environmental Protection and in compliance therewith, has completed installation

of a sanitary sewerage collector system and issued bonds or bond anticipation notes

to finance such system, and such system is inoperable because the sewerage authority

charged with the duty of providing an interceptor system has not yet so provided and

therefore no interceptor system is ready to receive the effluent from such municipal

collector system through no fault of the local governmental unit, the State shall

reimburse such governmental unit for annual interest and debt service costs for the

collector system. Such payments shall be made for such period that the collector system remains inoperative

and should the system become operable for any portion of a year, payment shall be

made for the entire year. That portion of the reimbursement representing principal received at any time on

or after July 1, 1982, shall be treated as a loan to be repaid by the local governmental

unit to the State over a period of years equal to the number of years during which

those loan payments were received by the local governmental unit and in the same amount

per year and same order each year as those loan payments were received, but the repayments

shall not commence until the first full calendar year after the collector system becomes

operative and after all principal and interest on the outstanding obligations of the

local governmental unit for the collector system have been repaid. Upon receipt of a written request from a local governmental unit, the Local Finance

Board, if compelling reasons are demonstrated, may modify the repayment schedule,

provided all repayments are made within the same number of years as required hereinabove.