18A:24-61.11 - Refunding bonds for refunding bonds due over five year period; investments - New Jersey Statutes

18A:24-61.11.  Refunding bonds for refunding bonds due over five year period;  investments    If the local finance board shall find that a special refunding program is in  the public interest and is based upon a sound financial plan for equalizing or  reducing the debt service of a school district, a refunding bond ordinance may  authorize refunding bonds for refunding some or all of any bonds of the school  district which will become due over a period of not exceeding 5 years.  Such  refunding bond ordinance shall provide for the sale annually during such  period, or at such other time or times as the local finance board may approve,  of blocks or series of refunding bonds to provide funds to pay the bonds and  interest to be refunded and such ordinance may also provide for the investment  and application of the proceeds of such refunding bonds, pending the maturity  or maturities of the bonds to be refunded and for reinvestment or other  application of income and realizations upon such investments.

    Such investment and reinvestment shall be restricted to (a) purchase and holding of unlimited bonds or notes or other obligations (whether or not interest-bearing) issued or unconditionally guaranteed as to both principal and  interest by the United States of America and which mature or which the United  States of America is on demand obligated to pay, not later than the end of the  respective calendar years of the maturities of the several bonds to be  refunded, or (b) purchase and cancellation of any of the bonds to be refunded  in the manner or mode of procedure prescribed by the Fiscal Affairs Law.

     L.1969, c. 130, s. 11, eff. July 2, 1969.