Title 40A, Title 40A: MUNICIPALITIES AND COUNTIES

40A:2-13. Multipurpose bond ordinances Any 2 or more purposes for which this chapter authorizes obligations may be provided for in a single bond ordinance and may be combined in a single issue of obligations. L.1960, c. 169, s. 1, eff. Jan. 1, 1962.

40A:2-14. Local improvement obligations a. Any bond ordinance to finance any local improvement, in addition to other required provisions, shall contain: 1. a determination of the amount or the percentage of the cost which the local unit will contribute to the payment of the cost …

40A:2-15. Power to make special covenants in bond Any bond ordinance to finance any cost or expense of a municipal public utility, or any ordinance amendatory thereof or supplemental thereto adopted prior to the issuance of obligations, may contain the following covenants with th…

40A:2-16. Matters not in bond ordinance All matters not required to be contained in the bond ordinance may be determined by subsequent resolutions passed by the recorded affirmative votes of a majority of the full membership of the governing body. L.1960, c. 169, s. 1, eff. Jan. …

40A:2-17 Adoption of bond ordinance, procedures. 40A:2-17. a. Introduction. A bond ordinance shall be introduced in writing at a meeting of the governing body and shall be passed upon first reading, which may be by title. b. Publication, hearing and adoption. The bond ordinance, …

40A:2-18 Bond ordinance, effective date. 40A:2-18. A bond ordinance shall take effect 20 days after the first publication of the ordinance or of a summary thereof after final adoption. A bond ordinance which authorizes obligations to fund, refund, renew, extend or retire obligati…

40A:2-19 Publications. 40A:2-19. 1. a. Publications required by this chapter shall, until March 1, 2026, either in the case of a municipality, be in a newspaper published and circulating in the municipality, if there be one, and if not, in a newspaper published in the county and …

40A:2-2. Definitions The following words as used in this chapter shall have the following meanings, unless the context clearly indicates a different meaning: "bond ordinance" means an ordinance adopted as herein provided by the governing body of a local unit authorizing obligatio…

40A:2-20. Expenses included in cost The cost of an improvement or property may include interest on obligations until the end of the fiscal year in which the obligations are issued or until 6 months after the completion of construction or acquisition, and architect's fees, account…

40A:2-21. Minimum period of usefulness No local unit shall authorize obligations for any improvement or purpose having a period of usefulness of less than 5 years. L.1960, c. 169, s. 1, eff. Jan. 1, 1962.

40A:2-22 Maximum bond terms. 40A:2-22. The governing body of the local unit shall determine the period of usefulness of any purpose according to its reasonable life computed from the date of the bonds, which period shall not be greater than the following: a. Buildings and structu…

40A:2-22.1 Request for determination of period of usefulness. 18. A local unit may request, in a form and manner determined by rule and regulation of the Local Finance Board, that the Director of the Division of Local Government Services in the Department of Community Affairs det…

40A:2-24. Form of obligations Notes may be issued payable to bearer, with interest payable to bearer or on presentation for endorsement or may be in registered form. Notes payable to bearer may be made subject to registration and the principal of and interest on notes so register…

40A:2-24.1 Submission of financial cost estimate for projects not funded by trust. 3. A local unit that does not finance an environmental infrastructure project with funding provided by the New Jersey Environmental Infrastructure Trust shall submit the financing cost estimate pro…

40A:2-25. Execution and delivery of obligations Obligations shall be executed in the name of the local unit by the manual or facsimile signatures of such officials, including a financial officer, as may be designated by resolution, or if none be designated, of the director of the…

40A:2-26 Maturities of bonds. 40A:2-26. Maturities of all bonds shall be as determined by bond ordinance or by subsequent resolution and within the following limitations: a. All bonds shall mature within the period or average period of usefulness determined in the bond ordinance.…

40A:2-27 Sale of bonds, methods. 40A:2-27. a. All bonds shall be sold at public sale upon the submission of sealed bids or through the submission of electronic proposals, except that bonds may be sold at private sale without any previous public offering: (1) if constituting all o…

40A:2-28. Sale of bond anticipation notes or capital notes All bond anticipation notes or capital notes may be sold at private sale pursuant to resolution of the governing body, or by a financial officer of the local unit expressly designated by resolution to sell such notes. The…

40A:2-29 Minimum price for obligations. 40A:2-29. Obligations sold pursuant to subsection d. of N.J.S.40A:2-32 shall be sold at not less than par value plus any interest accrued to the date of delivery. No other obligations shall be sold for less than 99% of par value and interes…

40A:2-3 Power to incur indebtedness, borrow money, issue bonds. 40A:2-3. Any local unit, by bond ordinance, may incur indebtedness, borrow money, authorize and issue negotiable obligations for financing: a. any capital improvement or property which it may lawfully make or acquire…

40A:2-3.1 Local governments, funding of animal shelter operated by nonprofit organization. 1. Notwithstanding the provisions of any other law to the contrary, and in addition to any other law authorizing these expenditures, a municipality or county may appropriate funds as a capi…

40A:2-30 Advertisement of public sale of bonds. 40A:2-30. a. A notice of public sale of bonds containing the provisions described in subsection a. of N.J.S.40A:2-31 shall be advertised at least once at least seven days prior thereto in a newspaper qualified for publication of a b…

40A:2-31 Contents of notice. 40A:2-31. a. A notice of public sale of bonds required to be advertised pursuant to N.J.S.40A:2-30 shall set forth: (1) the principal amount, date, denomination and maturities, and authorization for any adjustments to the maturities pursuant to subsec…

40A:2-32 Sale of bonds; bidding requirements. 40A:2-32. a. (1) All bidders shall be required to deposit cash delivered by wire or otherwise or a certified or cashier's or treasurer's check, drawn upon a bank or trust company, equal to not less than 2% of the bonds to secure the l…

40A:2-33. Sale of bonds at 1 time or in installments Any issue of bonds may be sold at 1 time or in installments at different times. The maturities of an installment of bonds offered for sale when combined with all maturities of the issue previously sold, shall be such as to comp…

40A:2-34. Power of financial officer to sell bonds The governing body, by resolution, may designate a financial officer of the local unit to sell and award bonds in accordance with the advertised terms of public sale. The financial officer making any such sale shall report in wri…

40A:2-35. Conversion, reconversion and reissuance of bonds Unmatured bonds heretofore or hereafter issued by a local unit under this chapter or any other law, and containing provisions for registration, conversion or reconversion, or issued as bonds in registered form or coupon f…

40A:2-36. Lost, destroyed or defaced obligations Lost, destroyed or defaced obligations shall be reissued in the form and tenor of the original obligations upon supplying to the satisfaction of the governing body (a) proof of ownership, (b) proof of loss or destruction or the def…

40A:2-37. Contracts to be financed by obligations The governing body shall not make any contract under which payments are to be financed pursuant to a bond ordinance until such bond ordinance shall be effective. L.1960, c. 169, s. 1, eff. Jan. 1, 1962.

40A:2-38. Prohibited agreements In the issuance or sale of obligations, it shall be unlawful for the governing body or any member thereof or any official: a. To pay or agree to pay, directly or indirectly, any bonus, commission, fee or other compensation or consideration for the …

40A:2-38.1. Attorneys; compensation; services on issuance of bonds No county, municipality or other political subdivision of the State or any board, commission or agency thereof, shall compensate an attorney for services rendered in connection with the issuance of bonds other tha…

40A:2-39. Application of proceeds The proceeds of the sale of obligations shall be applied only to the purposes for which such obligations are authorized. If, for any reason, any part of such proceeds are not necessary for such purposes, such part shall be used to pay such outsta…

40A:2-4. Payment of obligations The power and obligation of a local unit to pay any and all bonds and notes issued by it pursuant to this chapter, or any act of which this chapter is a revision, shall be unlimited, and the local unit shall levy ad valorem taxes upon all the taxab…

40A:2-40. Annual debt statement The chief financial officer of each local unit shall, before the end of the first month of each fiscal year, make and file in the office of the clerk and of the director an annual debt statement, under oath, as of the last day of the preceding fisc…

40A:2-41. Contents of annual debt statement The annual debt statement shall be in form prescribed by the director and shall set forth as to the local unit: a. Gross debt; b. Deductions; c. Net debt; d. The equalized valuations of the taxable real estate, together with improvement…

40A:2-42. Supplemental debt statement A supplemental debt statement shall be in form prescribed by the director and shall set forth as to the local unit: a. The net debt as stated in the annual debt statement or revision thereof last filed; the amount by which such net debt has b…

40A:2-43. Gross debt Gross debt shall include all bonds and notes issued and authorized but not issued pursuant to this or any other law by the local unit, or guaranteed by the local unit, except tax anticipation notes, emergency notes, special emergency notes and utility revenue…

40A:2-44. Deductions from gross debts 40A:2-44. There shall be deducted from the gross debt of the local unit, to the extent included therein, the amount of bonds or notes issued and authorized but not issued: a. for school purposes by a municipality or by a school district with …

40A:2-45 Self-liquidating purposes. 40A:2-45. Any municipal public utility shall be deemed to be a self-liquidating purpose if the cash receipts from fees, rents or other charges, and for redevelopment utilities, taxes other than taxes assessed on real property, in a fiscal year …

40A:2-46. Self-liquidating purposes during construction Any municipal public utility shall be deemed to be self-liquidating during the period of construction or acquisition and until it shall have been in operation for at least 1 fiscal year if the local government board or, in t…

40A:2-47. Self-liquidating improvements and extensions Obligations to finance an improvement or extension of a municipal public utility shall be deemed to be for a self-liquidating purpose in the fiscal year in which the obligations to finance the same shall have been authorized …

40A:2-48. Self-liquidating utility deficits The amount of the deficit in the income of a self-liquidating municipal public utility applicable to interest and debt redemption, or the prospective amount of such deficit as determined by the local government board or, in the case of …

40A:2-49. Conclusiveness of authorization of obligations After 20 days after publication after final passage of a bond ordinance, the following shall be conclusively presumed: a. the accuracy, correctness and sufficiency of any annual or supplemental debt statement filed in conne…

40A:2-5. Authorization as appropriation An authorization of obligations shall constitute an appropriation of the proceeds thereof for the purposes stated in the bond ordinance. L.1960, c. 169, s. 1, eff. Jan. 1, 1962.

40A:2-50. Conclusiveness of validity of obligations After issuance, all obligations shall be conclusively presumed to be fully authorized and issued by all the laws of this State, and any person shall be estopped from questioning their sale, execution or delivery by the local uni…

40A:2-51 Issuance of refunding bonds. 40A:2-51. Any local unit may incur indebtedness, borrow money, authorize and issue refunding bonds, notwithstanding any provision or limitation contained in this chapter or in any other law, and in any amount determined to be necessary by the…