40:68A-43 - Powers of municipalities; finances; ordinance - New Jersey Statutes

40:68A-43.  Powers of municipalities;  finances;  ordinance
    a.  Any municipality shall have power, in the discretion of its governing body, and pursuant to ordinance:

    (1) To appropriate moneys for the purposes of the municipal port authority,  and to loan or donate such moneys to the municipal port authority in such  installments and upon such terms as may be agreed upon with the municipal port  authority;

    (2) To covenant and agree with the municipal port authority to pay to, or on  order of, the authority annually or at shorter intervals as a subsidy for the  promotion of its purposes, amounts not to exceed those stated in the ordinance;

    (3) To unconditionally guarantee the punctual payment of the principal and interest of bonds of the authority;  and

    (4) Upon authorization by it in accordance with law of the performance of any act or thing which it is empowered by law to authorize and perform, and after appropriation of the moneys necessary, if any, for such performance, to covenant and agree with the authority to do and perform that act or thing and concerning the time, manner and other details of the action or performance.

    b.  Any guaranty of bonds of an authority made pursuant to this section shall be evidenced by endorsement thereof on the bonds, executed in the name of  the municipality and on its behalf by the officer designated in the ordinance  authorizing such guaranty, and the municipality shall thereupon and thereafter  be obligated to pay the principal of and interest on the bonds in the same  manner and to the same extent as in the case of bonds issued by it. Any  guaranty of bonds of the authority and any ordinance authorizing the guaranty  is subject to all statutory or other debt limitations including particularly  any limitation or requirement under or pursuant to the  "Local Bond Law"  (N.J.S. 40A:2-1 et seq.), and the principal amount of bonds guaranteed pursuant  to the ordinance shall be included in the gross and net debt of the  municipality for the purpose of determining the indebtedness of the  municipality under or pursuant to that law.  Any payment made by a municipality  pursuant to a guaranty shall be considered  "debt service"  for purposes of the  municipal spending limitations in P.L.1976, c. 68, s. 3 (C. 40A:4-45.3).

    c.  Every municipality which shall make any contract, covenant or agreement  with an authority or pledge to an authority pursuant to this section is hereby  authorized and directed to do and perform any and all acts or things necessary,  convenient or desirable to carry out and perform the same and to provide for  the payment or discharge of any obligation thereunder in the same manner as  other obligations of the municipality. Every authority is hereby empowered to  accept, and make and enter into, any of the contracts, covenants, agreements or  contractual provisions referred to in this section and is hereby authorized and  directed to do and perform any and all acts and things necessary, convenient or  desirable to carry out and perform the same. The contract, covenant, agreement  or pledge, and any instrument making or evidencing the same, may be pledged or  assigned by the authority to secure its bonds and thereafter may not be  modified except as provided by the terms of that instrument or by the terms of  that pledge or assignment.

     L.1960, c. 192, p. 817, s. 15, eff. Feb. 15, 1961.  Amended by L.1981, c. 547, s. 1.