2009 New Jersey Code
TITLE 40 - MUNICIPALITIES AND COUNTIES
Section 40:68
40:68-43 - Guaranty of bonds

40:68-43.  Guaranty of bonds
    For the purpose of aiding a district in the accomplishment of any of the purposes or powers provided for in this article and in marketing any of its bonds, refunding or other, the municipality in which it is situate may pursuant  to ordinance duly adopted by its governing body in the manner provided for  adoption of a bond ordinance as provided in the Local Bond Law (N.J.S.A. Title  40A:2 et seq.) and with or without consideration and upon such terms and  conditions as may be agreed to by and between the municipality and the district  unconditionally guarantee the punctual payment of the principal of and interest  on any bonds of the district.  Any guaranty of bonds of a district made  pursuant to this section shall be evidenced by indorsement thereof or such  bonds executed in the name of the municipality and on its behalf by such  officer thereof as may be designated in the ordinance authorizing such guaranty  and such municipality shall thereupon and thereafter be obligated to pay the  principal of and interest on such bonds in the same manner and to the same  extent as in the case of bonds issued by it. The principal amount of bonds so  guaranteed shall after their issuance be included in the gross debt of such  municipality for the purpose of determining the indebtedness of such  municipality under or in pursuant to the Local Law.

     L.1967, c. 184, s. 17, eff. July 27, 1967.