N.J. Admin. Code § 5:30-2.5 - Refunding of bonds meeting certain conditions

(a) Notwithstanding the approvals and consents required of the Local Finance Board in connection with the authorization, sale, and issuance of refunding bonds pursuant to N.J.S.A. 40A:2-51 et seq., or 18A:24-61 et seq., any municipality, county, or school district meeting all of the conditions set forth below, may authorize and issue refunding bonds, including by adoption of any refunding bond ordinance or resolution in connection therewith, to refund long-term debt without prior approval of the Local Finance Board, where the issuance of those refunding bonds realizes debt service savings on the outstanding obligations, provided all of the following conditions are present:

1. The present value savings is at least three percent;

2. The new debt service schedule shall be structured, such that no annual debt service payment is more than it was under the original debt service schedule;

3. The final maturity of the refunding bond does not extend past the budget year in which such final maturity was originally scheduled to mature; and

4. The debt savings are substantially level across the life of the refunding.

(b) The municipality, county, or school district shall, within 10 days of the closing on the refunding bond sale, file with the Local Finance Board a comparison of the initial and refunding debt service schedule showing annual present value savings; a summary of the refunding; an itemized accounting of all costs of issuance; a certification from the chief financial officer for a municipality or county, or the school business administrator or board secretary for a school district, that all of the conditions of this section have been met; and that a resolution, pursuant to N.J.S.A. 40A:2-51(c) or 18A:24-61.5(b), as appropriate, passed by two-thirds of the full membership of the governing body or board of education allowing for the refunding.

Notes

N.J. Admin. Code § 5:30-2.5

Amended by 49 N.J.R. 1187(a), effective 5/15/2017