New Jersey § 5:10-14

§ 5:10-14.

a. The authority may create and establish a reserve fund in connection with the issuance

of bonds to finance the initial project to be known as the debt service reserve fund

and may pay into such reserve fund (1) any moneys appropriated and made available

by the State for the purposes of such fund, (2) any proceeds of sale of such bonds

to the extent provided in the resolution of the authority authorizing the issuance

thereof, and (3) any other moneys which may be made available to the authority for

the purposes of such fund from any other source or sources. The moneys held in or credited to the debt service reserve fund established under

this section, except as hereinafter provided, shall be used solely for the payment

of the principal of such bonds of the authority secured by such reserve fund, as the

same mature or become due, the purchase or retirement of such bonds, the payment of

interest on such bonds or the payment of any redemption premium required to be paid

when such bonds are redeemed prior to maturity; provided, however, that moneys in

such fund shall not be withdrawn therefrom at any time in such amount as would reduce

the amount of such fund to less than the maximum debt service reserve (as hereinafter

defined) with respect to such bonds then outstanding and secured by such reserve fund,

except for the purpose of paying the principal of, interest on, the premium, if any,

on, and the retirement of, such bonds secured by such reserve fund maturing or becoming

due and for the payment of which other moneys of the authority are not available. Maximum debt service reserve as used in this section shall mean, as of any date

of calculation and with respect to such bonds secured by the debt service reserve

fund, the largest amount of money required by the terms of any contracts of the authority

with the holders of such bonds to be provided in any succeeding calendar year for

the payment of interest on and serial maturities of such bonds then outstanding and

payments required by the terms of any such contracts to be made to sinking funds established

for the payment or redemption of such bonds, calculated on the assumption that such

bonds will cease to be outstanding after the date of such calculation only by reason

of the payment of such bonds at their respective maturities and the making of required

payments to sinking funds and the application thereof in accordance with the terms

of such contracts to the retirement of such bonds. Any income or interest earned by, or increment to, the debt service reserve fund

due to the investment thereof may be transferred to any other fund or account of the

authority to the extent it does not reduce the amount of such debt service reserve

fund below the maximum debt service reserve with respect to such bonds of the authority

then outstanding and secured by such reserve fund. b. The authority shall not issue bonds at any time if the maximum debt service reserve

with respect to such bonds outstanding and then to be issued and secured by the debt

service reserve fund will exceed the amount of such reserve fund at the time of issuance,

unless the authority, at the time of issuance of such bonds, shall deposit in such

reserve fund from the proceeds of such bonds so to be issued, or otherwise, an amount

which, together with the amount then in such reserve fund, will be not less than the

maximum debt service reserve with respect to such bonds then to be issued and on all

other bonds of the authority then outstanding and secured by such reserve fund. c. To assure the continued operation and solvency of the authority for the carrying

out of the public purposes of the act, provision is made hereinabove in this section

for the accumulation in the debt service reserve fund of an amount equal to the maximum

debt service reserve with respect to all bonds of the authority then outstanding and

secured by such reserve fund. In order further to assure the maintenance of such debt service reserve fund, there

shall be annually appropriated and paid to the authority for deposit in the debt service

reserve fund such sum, if any, as shall be certified by the chairman of the authority

to the Governor as necessary to restore such reserve fund to an amount equal to the

maximum debt service reserve with respect to such bonds of the authority then outstanding

and secured by such reserve fund. The chairman of the authority shall annually, on or before March 1, make and deliver

to the Governor his certificate stating the sum, if any, required to restore the debt

service reserve fund of the authority to the amount aforesaid, and the sum or sums

so certified, if any, shall be appropriated and paid to the authority for deposit

in such debt service reserve fund of the authority prior to the end of the first calendar

month of the next succeeding State fiscal year. Any payments to be made by the State to the authority as aforesaid for deposit in

such debt service reserve fund are subject to and dependent upon appropriations being

made from time to time by the State Legislature for such purpose. d. In computing the debt service reserve fund for the purposes of this section, securities

in which all or a portion of such debt service reserve fund shall be invested shall

be valued at par, or if purchased at less than par, at their cost to the authority. e. Nothing herein contained shall be deemed to cause the bonds or notes of the authority

to be in any way a debt or a liability of the State or any political subdivision thereof

other than the authority, and the bonds and notes of the authority, whether or not

payable from the debt service reserve fund created and established pursuant to this

section, shall not create or constitute any indebtedness, liability or obligation

of the State or any such political subdivision or be or constitute a pledge of the

faith and credit of the State or of any such political subdivision. f. For purposes of this section, initial project shall mean the initial development

of the meadowlands complex as determined by the authority, and shall consist of (1)

a football stadium to seat approximately 76,500 persons, (2) a racetrack and related

facilities for both thoroughbred and harness horse racing, (3) roadways, parking and

other support facilities therefor, and environmental facilities in connection therewith,

together with all land and rights in land, structures and improvements, and other

facilities and appurtenances related thereto.