40:43-21.1 - Refunding pro rata share of indebtedness - New Jersey Statutes

40:43-21.1.  Refunding pro rata share of indebtedness    When two or more municipalities have been created prior to May second, one thousand nine hundred and thirty-six, within the limits of a former municipality and the bonded indebtedness of said former municipality shall have  been apportioned among the newly created municipalities in accordance with this  article, and one or more but not all of such newly created municipalities shall  desire to retire or refund any or all of the indebtedness so allocated to it or  them by payment of the same or by the issuance of new bonds in discharge  thereof, such municipality or municipalities may pay said allocated proportion  of such indebtedness or refund all or any part thereof including interest  accrued thereon by the issuance of new bonds under the provisions of any law of  this state permitting the issuance of refunding bonds, provided the holders of  the outstanding obligations of said former municipality shall agree to accept part payment thereof either in cash or in refunding bonds of the municipalities desiring to refund their respective shares of said obligations.  As evidence of  the receipt of payment on account of the principal of and interest on the outstanding obligations, the registered holders thereof shall execute a release  which shall be stamped on each such obligation and which shall be in such form  as shall have been approved by the governing body of the municipality.  No  payment shall be made or any refunding bond issued on account of any such  outstanding obligations except to the registered holders of such obligations.   Upon the above-mentioned release being duly executed by the registered holder  of the outstanding obligation, such municipality or municipalities so released  shall be relieved and discharged of any and all further liability in respect to  the principal of and interest on each said outstanding obligation.