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1. Sections 1 through 4 of this act shall be known and may be cited as
the "County College Capital Projects Fund Act."
L.1997,c.360,s.1.
2. The Legislature finds and declares that:
a. Higher education plays a vital role in the economic development of
the nation and the State by providing the education and training of the
work force of the future;
b. The county colleges serve a vital role in the educational system of
the State by providing students with an affordable means of obtaining
higher education, thereby providing opportunities to the residents of
the State which would not otherwise be available;
c. County colleges and the residents of the State would benefit from
additional funds and resources enabling counties to undertake and complete
county college capital projects;
d. It would therefore be appropriate for the New Jersey Educational Facilities
Authority created pursuant to N.J.S.18A:72A-1 et seq. to enter into contracts
with counties and the State Treasurer to provide for the financing of
county college capital projects.
L.1997,c.360,s.2.
3. a. There is created within the New Jersey Educational Facilities
Authority , established pursuant to chapter 72A of Title 18A of the New
Jersey Statutes, hereinafter referred to as the " authority
," a county college capital projects fund to finance county college
capital projects. The authority may issue bonds to finance the
State share of county college capital projects and the county share of
county college capital projects as certified by the State Treasurer pursuant
to section 2 of P.L.1971, c.12 (C.18A:64A-22.2). The State Treasurer
is hereby authorized to enter into a contract with the authority pursuant
to which the State Treasurer, subject to available appropriation, shall
pay the amount necessary to pay the principal and interest on bonds and
notes of the authority issued to finance the State share of county college
capital projects. The authority may enter into a loan agreement
with each county in which a county college capital project is located
for the purpose of funding the county share of the applicable county
college capital project.
b. The authority may from time to time issue bonds or notes in an amount
sufficient to finance county college capital projects and which shall
also finance the administrative costs and any reserves or other issuance
costs associated with the issuance of bonds or notes. The authority
shall issue the bonds or notes in such manner as it shall determine in
accordance with the provisions of this act and the "New Jersey educational
facilities authority law," N.J.S.18A:72A-1 et seq. The authority
shall not issue any bonds or notes pursuant to this section without the
prior written consent of the State Treasurer.
L.1997,c.360,s.3.
4. a. At any time within one year of the certification by the State
Treasurer to the board of chosen freeholders, the county college at which
the capital project is located, and the authority, pursuant to section
2 of P.L.1971, c.12 (C.18A:64A-22.2), the board of chosen freeholders
is authorized, in lieu of issuing bonds or notes pursuant to N.J.S.18A:64A-19,
to enter into a loan agreement with the authority for the issuance of
bonds or notes of the authority to fund the county share of the capital
project. The county shall issue bonds and notes to the authority
which shall be delivered to the authority to evidence the loan, and which
shall be the source of payment for the bonds or notes issued by the authority
to finance the county share of the capital project. The loan evidenced
by the bonds or notes may be made subject to such terms and conditions
as the authority determines to be consistent with the purposes thereof. Each
loan by the authority shall be subject to approval by the State Treasurer
and shall be evidenced by notes or bonds issued by the county which shall
be authorized and issued as provided by law for the issuance of notes
and bonds by the county. A loan to a county, and the notes, bonds
or other obligations thereby issued shall bear interest at a rate or
rates per annum as may be agreed upon by the authority and the county.
b. Any bonds or notes authorized by the county to be issued to the authority
or to another entity for the purpose of funding the county share of a
county college capital project shall be in addition to the sums authorized
to be borrowed by the board of chosen freeholders pursuant to the provisions
of N.J.S.18A:64A-19 for the purpose of funding the county's share of
capital projects, and the additional borrowing, if entered into by the
county, shall constitute a deduction from the gross debt of the county
and shall not be considered in determining its net debt for debt incurring
purposes.
L.1997,c.360,s.4.
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