49:2B-2 - Findings - New Jersey Statutes

49:2B-2.     Findings       2.   The Legislature finds that:

    a.   Many series of bonds of the State have been issued periodically to fulfill the various purposes for which those bonds were authorized; 

    b.   It has been necessary to sell some series of bonds of the State at times when interest rates in the municipal bond market have been higher than presently prevailing rates; 

    c.   Projections indicate that, when interest rates decline in the municipal bond market, certain refinancing methods can be utilized to reduce, on a present value basis, the aggregate amount of principal and interest payable on bonds of the State; 

    d.   Laws of the State enacted prior to the effective date of this act and authorizing the issuance of bonds do not provide the authority needed to utilize those refinancing methods; 

    e.   Bonds of the State have heretofore and will hereafter be issued pursuant to those laws; 

    f.   It is necessary for the State of New Jersey to provide for refinancing methods that will reduce, on a present value basis, the aggregate amount of principal and interest payable on bonds of the State in order to make more efficient use of the State's resources; 

    g.   At the general election held in the month of November 1983, the people of the State approved, in accordance with the provisions of the Constitution of the State of New Jersey, the amendment of Article VIII, Section II, paragraph 3 of the Constitution to allow the Legislature to authorize actions which would facilitate greater financial flexibility in connection with the refinancing of all or a portion of any outstanding debts of liabilities of the State theretofore or thereafter created; and 

    h.   The purpose of this Refunding Bond Act of 1985 is to implement the purpose of that amendment to the Constitution. 

    L.1985,c.74,s.2.

49:2B-3.     Definitions 
    3.   As used in this act:

   a.   "Outstanding bonds" means any bonds of the State of New Jersey, and the interest coupons, if any, appertaining thereto, which have heretofore been issued or which are hereafter issued pursuant to any law of the State and which are direct obligations of the State for which the faith and credit of the State are pledged for the payment of the interest thereon as it shall become due and the payment of the principal at maturity. 

   b.   "Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency to the extent those obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of any ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions of those obligations (which may consist of the principal of, or the interest on, those obligations). 

   c.   "State Treasurer" means the Treasurer of the State of New Jersey.

   d.   "Refinancing" means providing for the payment of an obligation at or prior to its maturity or upon redemption, as provided in this act. 

   e.   "Refunding bonds" means bonds of the State issued under this act.

   L.1985,c.74,s.3; amended 1992,c.182,s.1.