40:60-25.22 - Sale of plants; proceeds pledged to payment of bonds issued - New Jersey Statutes

40:60-25.22.  Sale of plants;  proceeds pledged to payment of bonds issued
    In order further to secure the payment of the principal of bonds which such  municipality may issue for the financing of the acquisition of, or of improvements to, the property, or any portion thereof, such governing body of the municipality, by ordinance adopted prior to the issuance of any such bonds,  may pledge the proceeds of sales of portions of the property to the payment of  such bonds, or a determined amount of bonds, for such purpose or purposes, as  the ordinance may provide.  In the event of the adoption of such a pledge by  such governing body, moneys thereafter derived from the sales of portions of  the property shall be paid to the municipality, shall be deposited in such bank  or banks as such governing body shall determine, shall be set aside in a  special fund and shall be withdrawn from that fund only for the payment of the  principal of bonds, as such ordinance may provide.  Unless or until such  ordinance shall be adopted, all moneys derived from the sales of portions of  the property shall be paid to the municipality, shall be deposited in such bank  or banks as such governing body shall determine, shall be set aside in a  special fund and shall be applied only to the payment of bonds or of notes in  anticipation of bonds, thereafter issued by the municipality for the financing  of the acquisition of, and of improvements to, the property.

     L.1946, c. 245, p. 864, s. 5.