40A:2-3. Power to borrow money and issue obligations.
Any local unit, by bond ordinance, may incur indebtedness, borrow money, authorize and issue negotiable obligations for financing:
- a. any capital improvement or property which it may lawfully make or acquire;
- b. any purpose for which it is authorized or required by law to make an appropriation, except current expenses and payment of obligations (other than those for temporary financing); or
- c. the amount of any contribution by a local unit that is a sending municipality under a regional contribution agreement pursuant to section 12 of P.L.1985, c.222 (C.52:27D-312).
No local unit shall borrow money or issue its obligations for purposes authorized under this chapter except as provided in this chapter.
Amended. L. 1996, c. 113, §9, effective September 5, 1996.
40A:2-4. Payment of Obligations.
The power and obligation of a local unit to pay any and all bonds and notes issued by it pursuant to this chapter, or any act of which this chapter is a revision, shall be unlimited, and the local unit shall levy ad valorem taxes upon all the taxable property within the local unit for the payment of principal of and interest on such bonds and notes without limitation as to rate or amount.
40A:2-5. Authorization as appropriation.
An authorization of obligations shall constitute an appropriation of the proceeds thereof for the purposes stated in the bond ordinance.
40A:2-6. Debt limitation.
No bond ordinance shall be finally adopted if it appears from the supplemental debt statement required by this chapter that the percentage of net debt as stated therein pursuant to 40A:2-42 exceeds 2.00%, in the case of a county, or 3 1/2%, in the case of a municipality.
Amended. L. 1964, c. 72, §2.
40A:2-12. Contents of bond ordinance.
A bond ordinance shall contain in substance the following:
- a. (1) an authorization for the issuance of obligations, stating in brief and general terms sufficient for reasonable identification the purpose or purposes for which the obligations are to be issued, a statement of the estimated maximum amount of bonds or notes to be issued, and the estimated cost of such purpose or purposes, but related improvements or properties may be treated as one improvement or property; or
a. (2) an authorization for the assumption by the local unit of the obligations of the authority sought to be dissolved pursuant to section 20 of P.L.1983, c.313 (C.40A:5A-20) for which the local unit is not a guarantor;
- b. a determination of the period of usefulness of the purpose within the limitations of this chapter or, if issued for several purposes, a determination of the average period of usefulness, taking into consideration the respective amounts of obligations authorized for the said several purposes;
- c. a determination that (1) the supplemental debt statement has been filed in the office of the clerk, (2) such statement shows that the gross debt as defined in this chapter is increased by authorization of such obligations by $______ or is not increased, and (3) the obligations authorized by the bond ordinance will be within debt limitations prescribed by this chapter, or the issuance thereof is permitted by an exception to said limitations naming the particular section, paragraph or law providing such exception;
- d. a statement of the aggregate amount for items of expense permitted under 40A:2-20.
Amended. L. 2001, c. 29, §2, effective March 8, 2001.
40A:2-13. Multipurpose bond ordinances.
Any 2 or more purposes for which this chapter authorizes obligations may be provided for in a single bond ordinance and may be combined in a single issue of obligations.
After final adoption, final publication of the bond ordinance must take place. There is a 20 day estoppel period after final publication before the bond ordinances will take effect, and a 10 day estoppel period after final publication before the capital ordinances will take effect.