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6. a. There is created within the New Jersey educational facilities authority
established pursuant to N.J.S.18A:72A-4, the "Dormitory Safety Trust
Fund," hereinafter referred to as the "trust fund."; The
trust fund shall be maintained as a separate account and administered by
the authority to carry out the provisions of P.L.2000, c.56 (C.52:27D-198.7
et al.). There shall be paid into this fund:
(1) moneys received from the sale of bonds or notes issued pursuant to
section 8 of P.L.2000, c.56 (C.18A:72A-12.8);
(2) moneys appropriated by the Legislature, including moneys as may be
appropriated annually in an amount sufficient to pay the principal and
interest on the bonds or notes;
(3) all interest and investment earnings received on the moneys in the
trust fund; and
(4) all repayments of loans authorized pursuant to P.L.2000, c.56 (C.52:27D-198.7
et al.).
b. The trust fund shall be used to provide loans to the schools and institutions
of higher education which are required pursuant to P.L.2000, c.56 (C.52:27D-198.7
et al.) to install automatic fire suppression systems, for the cost, or
a portion of the cost, of the construction, reconstruction, development,
extension or improvement of dormitory safety facilities, including fire
prevention and sprinkler systems.
L.2000,c.56,s.6.
7. a. The State Treasurer shall establish a program to provide the loans
authorized pursuant to P.L.2000, c.56 (C.52:27D-198.7 et al.). The governing
board of a public or private institution of higher education as defined
pursuant to N.J.S.18A:72A-3 or of a public or private secondary school
shall be eligible for and may determine by resolution to apply for a loan
from the trust fund established pursuant to section 6 of P.L.2000, c.56
(C.18A:72A-12.6). The resolutions shall be transmitted to and in a manner
to be determined by the State Treasurer. Owners of residences being utilized
by fraternities or sororities, other than those owned by public or private
institutions of education, who are responsible for the installation of
an automatic fire suppression system pursuant to section 3 of P.L.2000,
c.56 (C.52:27D-198.9) shall not be eligible for a loan from the trust fund
established pursuant to section 6 of P.L.2000, c.56 (C.18A:72A-12.6), but
shall be eligible and may apply for a life safety improvement loan pursuant
to section 13 of P.L.1983, c.530 (C.55:14K-13) as amended by section 13
of P.L.2000, c.56.
b. Individual loan amounts from the trust fund shall be limited to no more
than the projected costs as stated in the plan required to be filed with
the Director of the Division of Fire Safety in the Department of Community
Affairs pursuant to section 3 of P.L.2000, c.56 (C.52:27D-198.9), and loan
amounts shall be disbursed in accordance with the need and the time frame
established under the installation plan. If sufficient funds are not available
to fully fund each request, the State Treasurer may limit the amounts loaned
on a basis which shall provide the maximum amount of funding to the greatest
number of buildings.
c. The loans issued pursuant to this subsection shall bear interest of
not more than:
(1) zero percent per year for loans made to public or private institutions
of higher education as defined pursuant to N.J.S.18A:72A-3; or
(2) two percent per year for loans made to secondary schools, military
schools, boarding schools, or similar occupancies.
d. The term of a loan shall be for a period of not more than 15 years.
Any loan approved pursuant to this subsection shall be contingent upon
the applicant entering into a contract or contracts for the construction,
reconstruction, development, extension or improvement required in the installation
plan in accordance with section 3 of P.L.2000, c.56 (C.52:27D-198.9).
e. The State Treasurer shall:
(1) review each application and approve, disapprove, amend or modify the
loan request;
(2) establish any other terms or conditions of each loan which are not
otherwise provided under this section; and
(3) forward to the New Jersey educational facilities authority and the
Department of Community Affairs a copy of any loan approval granted pursuant
to this section, including information concerning the amount and terms
of the loan.
f. All repayments of loans awarded pursuant to this section shall be made
to the authority and deposited by the authority into the trust fund.
g. The State Treasurer shall promulgate the rules necessary to effectuate
this section in accordance with the "Administrative Procedure Act," P.L.1968,
c.410 (C.52:14B-1 et seq.).
L.2000,c.56,s.7.
8. a. The authority shall from time to time issue bonds or notes, in accordance
with the provisions of the "New Jersey educational facilities authority
law," N.J.S.18A:72A-1 et seq., and in an amount sufficient to finance
the loans provided under P.L.2000, c.56 (C.52:27D-198.7 et al.) and to
finance the administrative costs associated with the approval process and
the issuance of the bonds or notes, up to a total amount not to exceed
$90,000,000; except that all administrative costs associated with the approval
process and the issuance of bonds, notes or other obligations shall not
be included within the total aggregate principal amount of the bonds, notes
or other obligations issued; the term of any bond so issued shall not exceed
15 years. In computing the foregoing limitation as to amount, there shall
be excluded all bonds which shall be issued for refunding purposes, provided
that the refunding shall be determined by the authority to result in a
debt service savings. The authority shall issue the bonds or notes in such
manner as it shall determine in accordance with the provisions of P.L.1993,
c.375 (C.18A:72A-49 et al.) and the "New Jersey educational facilities
authority law," N.J.S.18A:72A-1 et seq., provided that no bonds or
notes shall be issued pursuant to this section without the prior written
consent of the State Treasurer.
b. Bonds or notes issued pursuant to P.L.2000, c.56 (C.52:27D-198.7 et
al.) shall not be in any way a debt or liability of the State or of any
political subdivision thereof other than the authority and shall not create
or constitute any indebtedness, liability or obligation of the State or
of any political subdivision thereof, or be or constitute a pledge of the
faith and credit of the State or of any political subdivision thereof,
but all bonds or notes, unless funded or refunded by the bonds or notes
of the authority , shall be payable solely from revenues of funds pledged
or available for their payment as authorized by P.L.2000, c.56 (C.52:27D-198.7
et al.). Each bond shall contain on its face a statement to the effect
that the authority is obligated to pay the principal thereof, redemption
premium, if any, or the interest thereon only from revenue or funds of
the authority and that neither the State nor any political subdivision
thereof is obligated to pay the principal thereof, redemption premium,
if any, or interest thereon and that neither the faith and credit nor the
taxing power of the State or of any political subdivision thereof is pledged
to the payment of the principal of, redemption premium, if any, or the
interest on the bonds.
c. The State of New Jersey does hereby pledge to and covenant and agree
with the holders of any bonds or notes issued pursuant to the authorization
hereunder that the State shall not limit or alter the rights or powers
hereby vested in the authority to perform and fulfill the terms of any
agreement made with the holders of the bonds or notes, or to fix, establish,
charge and collect such rents, fees, rates, payments, or other charges
as may be convenient or necessary to produce sufficient revenues to meet
all expenses of the authority and to fulfill the terms of any agreement
made with the holders of the bonds and notes, together with interest thereon,
with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceedings by or on behalf of
the holders, until the bonds and notes, together with interest thereon,
are fully met and discharged or provided for.
d. The State Treasurer is hereby authorized to enter into a contract with
the authority pursuant to which the State Treasurer, subject to available
appropriations, shall pay the amount necessary to pay the principal and
interest on bonds, notes and other obligations of the authority issued
pursuant to P.L.2000, c.56 (C.52:27D-198.7 et al.) plus any amounts payable
in connection with an agreement authorized under subsection (g) of N.J.S.18A:72A-8.
e. To assure the continued operation and solvency of the dormitory safety
trust fund program, the authority shall require that if a school or institution
of higher education fails or is unable to pay to the authority in full,
when due, any obligation of the institution to the authority , an amount
sufficient to satisfy the deficiency shall be retained by the State Treasurer
from State aid or an appropriation payable to the institution. As used
in this section, "obligation of the school or institution" means
any amount payable by the school or institution for dormitory safety facilities
pursuant to an agreement with the authority.
The amount retained by the State Treasurer shall be deducted from the corresponding
appropriation or apportionment of State aid payable to the school or institution
of higher education and shall not obligate the State to make, or entitle
the school or institution to receive, any additional appropriation or apportionment.
L.2000,c.56,s.8.
Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and
the trustee or trustees under any trust agreement, except
to the extent the rights herein given may be restricted
by any resolution authorizing the issuance of, or any
such trust agreement securing, such bonds, may, either
at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under
the laws of the state or granted hereunder or under such
resolution or trust agreement, and may enforce and compel
the performance of all duties required by this chapter
or by such resolution or trust agreement to be performed
by the authority or by any officer, employee or agent
thereof, including the fixing charging and collecting
of the rates, rents, fees and charges herein authorized
and required by the provisions of such resolution or
trust agreement to be fixed, established and collected.
(a) The authority is hereby authorized to provide for
the issuance of bonds of the authority for the purpose
of refunding any bonds of the authority then outstanding,
including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest
or subsequent date of redemption, purchase or maturity
of such bonds, and, if deemed advisable by the authority,
for the additional purpose of paying all or any part
of the cost of constructing and acquiring additions,
improvements, extensions or enlargements of a project
or any portion thereof.
(b) The proceeds of any such bonds issued for the purpose
of refunding outstanding bonds may, in the discretion
of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either
on their earliest or any subsequent redemption date or
upon the purchase or at the maturity thereof and may,
pending such application, be placed in escrow to be applied
to such purchase or retirement at maturity or redemption
on such date as may be determined by the authority.
(c) Any such escrowed proceeds, pending such use, may be invested and reinvested
in obligations of or guaranteed by the United States of America, or in
certificates of deposit or time deposits secured by obligations of or guaranteed
by the United States of America, maturing at such time or times as shall
be appropriate to assure the prompt payment, as to principal, interest
and redemption premium, if any, of the outstanding bonds to be so refunded.
The interest, income and profits, if any, earned or realized on any such
investment may also be applied to the payment of the outstanding bonds
to be so refunded. After the terms of the escrow have been fully satisfied
and carried out, any balance of such proceeds and interest, income and
profits, if any, earned or realized on the investments thereof may be returned
to the authority for use by it in any lawful manner.
(d) The portion of the proceeds of any such bonds issued
for the additional purpose of paying all or any part
of the cost of constructing and acquiring additions,
improvements, extensions or enlargements of a project
may be invested and reinvested in obligations of or guaranteed
by the United States of America, or in certificates of
deposit or time deposits secured by obligations of or
guaranteed by the United States of America, maturing
not later than the time or times when such proceeds will
be needed for the purpose of paying all or any part of
such cost. The interest, income and profits, if any,
earned or realized on such investment may be applied
to the payment of all or any part of such cost or may
be used by the authority in any lawful manner.
(e) All such bonds shall be subject to the provisions of this chapter in
the same manner and to the same extent as other bonds issued pursuant
to this chapter.
Bonds and notes issued by the authority under the provisions
of this chapter are hereby made securities in which
the state and all political subdivisions of the state,
their officers, boards, commissions, departments or
other agencies, all banks, bankers, savings banks,
trust companies, savings and loan associations, investment
companies and other persons carrying on a banking=
business, all insurance companies, insurance associations,
and other persons carrying on an insurance business,
and all administrators, executors, guardians, trustees
and other fiduciaries, and all other persons whatsoever
who now are or may hereafter be authorized to invest
in bonds or other obligations of the state, may properly
and legally invest any funds, including capital belonging
to them or within their control; and said bonds, notes
or other securities or obligations are hereby made
securities which may properly and legally be deposited
with and received by any state or municipal officers
or agency of the state for any purpose for which the
deposit of bonds or other obligations of the state
is now or may hereafter be authorized by law.
Bonds may be issued under the provisions of this chapter
without obtaining the consent of any department, division,
commission, board, bureau, agency or officer of the
state, and without any other proceedings or the happening
of any other conditions or things than those proceedings,
conditions and things which are specifically required
by this chapter.
The authority shall not have power to mortgage any of its real property
or projects.
The exercise of the powers granted by this chapter will be in all respects
for the benefit of the people of this state, for the increase of their
commerce, welfare and prosperity, and for the improvement of their health
and living conditions, and as the operation and maintenance of a project
by the authority or its agent will constitute the performance of an essential
public function, neither the authority nor its agent shall be required
to pay any taxes or assessments upon or in respect of a project or any
property acquired or used by the authority or its agent under the provisions
of this chapter or upon the income therefrom, and any bonds issued under
the provisions of this chapter, their transfer and the income therefrom,
including any profit made on the sale thereof, shall at all times be
free from taxation of every kind by the state and by the municipalities
and other political subdivisions in the state.
The state of New Jersey does pledge to and agree with
the holders of the bonds, notes and other obligations
issued pursuant to authority contained in this chapter,
and with those parties who may enter into contracts
with the authority pursuant to the provisions of this
chapter, that the state will not limit, alter or restrict
the rights hereby vested in the authority and the participating
colleges to maintain, construct, reconstruct and operate
any project as defined in this chapter or to establish
and collect such rents, fees, receipts or other charges
as may be convenient or necessary to produce sufficient
revenues to meet the expenses of maintenance and operation
thereof and to fulfill the terms of any agreements
made with the holders of bonds authorized by this chapter,
and with the parties who may enter into contracts with
the authority pursuant to the provisions of this chapter,
or in any way impair the rights or remedies of the
holders of such bonds or such parties until the bonds,
together with interest thereon, are fully paid and
discharged and such contracts are fully performed on
the part of the authority. The authority as a public
body corporate and politic shall have the right to
include the pledge herein made in its bonds and contracts.
In carrying out the provisions of this chapter the
authority shall not be subject to the provisions of
section 18A:62-2.
On or before March 31 in each year, the authority shall
make an annual report of its activities for the preceding
calendar year to the governor and the legislature.
Each such report shall set forth a complete operating
and financial statement covering the authority's operations
during the year. The authority shall cause an audit
of its books and accounts to be made at least once
in each year by certified public accountants.
Except as otherwise expressly provided in this chapter,
any member, officer, agent or employee of the authority
who is interested, either directly or indirectly, in
any contract of another with the authority, or in the
sale of any property, either real or personal, to the
authority, shall be guilty of a misdemeanor.
The comptroller of the treasury and his legally authorized
representatives are hereby authorized and empowered
from time to time to examine the accounts and books
of the authority, including its receipts, disbursements,
contracts, sinking funds, investments and any other
matters relating to its financial standing.
18A:72A-24. The Governor may visit, examine into and inspect, the
authority as an institution under the educational supervision of the State,
and may require, as often as desired, duly verified reports therefrom giving
such information and in such form as the Governor shall prescribe.
Amended 1994,c.48,s.237.
The authority shall be entitled to call to its assistance and avail itself
of the services of such employees of any state department or agency as
it may require and as may be available to it for said purpose.
18A:72A-26. In order to provide new dormitories and to enable the
construction and financing thereof, to refinance indebtedness hereafter
created by the authority for the purpose of providing a dormitory or dormitories
or additions or improvements thereto, or for any one or more of said purposes,
but for no other purpose unless authorized by law, each of the following
bodies shall have the powers hereafter enumerated to be exercised upon
such terms and conditions, including the fixing of any consideration or
rental to be paid or received, as it shall determine by resolution as to
such property and each shall be subject to the performance of the duties
hereafter enumerated, that is to say, the treasurer as to such as are located
on land owned by the State or by the authority, the board of governors
of the university, the board of trustees of the New Jersey Institute of
Technology or the University of Medicine and Dentistry of New Jersey, the
board of trustees of a State college or the board of trustees of a county
college as to such as are located on land owned by the university or by
the particular college respectively, namely:
a. The power to sell and to convey to the authority
title in fee simple in any such land and any existing dormitories thereon
owned by the State or owned by the board of trustees of a county college
or the power to sell and to convey to the authority such title as the university
or the college respectively may have in any such land and any existing
dormitories thereon.
b. The power to lease to the authority any land
and any existing dormitories thereon so owned for a term or terms not exceeding
50 years each.
c. The power to lease or sublease from the authority,
and to make available, any such land and existing dormitories conveyed
or leased to the authority under subsections a. and b. of this section,
and any new dormitories erected upon such land or upon any other land owned
by the authority, any rentals to be payable, as to the university or as
to any such college from available funds other than moneys appropriated
to it by the State.
d. The power and duty, upon receipt of notice of
any assignment by the authority of any lease or sublease made under subsection
c. of this section, or of any of its rights under any such lease or sublease,
to recognize and give effect to such assignment, and to pay to the assignee
thereof rentals or other payments then due or which may become due under
any such lease or sublease which has been so assigned by the authority.
Amended 1971,c.77,s.1; 1994,c.48,s.238.
18A:72A-27. In addition thereto the board of governors of the university
and the board of trustees of each of said colleges including county colleges
shall have the following powers and shall be subject to the following duties
as to its lands and dormitories:
a. The power to pledge and assign all or any part of the revenues derived
from the operation of such new dormitories as security for the payment
of rentals due and to become due under any lease or sublease of such new
dormitories under subsection c. of the preceding section.
b. The power to covenant and agree in any lease or sublease of such new
dormitories made under subsection c. of the preceding section to impose
fees, rentals or other charges for the use and occupancy or other operation
of such new dormitories in an amount calculated to produce net revenues
sufficient to pay the rentals due and to become due under such lease or
sublease.
c. The power to apply all or any part of the revenues derived from the
operation of any dormitories to the payment of rentals due and to become
due under any lease or sublease made under subsection c. of the preceding
section.
d. The power to pledge and assign all or any part of the revenues derived
from the operation of any dormitories to the payment of rentals due and
to become due under any lease or sublease made under subsection c. of the
preceding section.
e. The power to covenant and agree in any lease or sublease made under
subsection c. of the preceding section to impose fees, rentals or other
charges for the use and occupancy or other operation of any dormitories
in an amount calculated to produce net revenues sufficient to pay the rentals
due and to become due under such lease or sublease.
f. The power to indemnify the authority from any liability for loss or
damage to any person or property of others resulting from any project financed
or to be financed by the authority for the benefit of the college.
Amended 1971, c.77, s.2; 1999, c.217, s.13.
18A:72A-27.1. In addition to the powers and duties
with respect to dormitories given under N.J.S.18A:72A-26
and 18A:72A-27 the treasurer, the board of governors
of the university, the board of trustees of the New
Jersey Institute of Technology, the board of trustees
of a State college, the board of trustees of a county
college and the board of trustees of the University
of Medicine and Dentistry of New Jersey shall also
have the same power and be subject to the same duties
in relation to any conveyance, lease or sublease made
under subsection a., b., or c. of section 18A:72A-26,
with respect to revenue producing facilities; that
is to say, structures or facilities which produce revenues
sufficient to pay the rentals due and to become due
under any lease or sublease made under subsection c.
of section 18A:72A-26 including, without limitation,
student unions and parking facilities.
Amended 1971,c.74; 1971,c.77,s.3; 1994,c.48,s.239.
In addition to the powers and duties with respect to dormitories and revenue
producing facilities given under the provisions of this chapter, the board
of trustees of a State college shall have the following powers with respect
to any educational facility, as defined in N.J.S. 18A:72A-3:
a. To enter into any conveyance, lease or sublease of the type
provided for in N.J.S. 18A:72A-26, 18A:72A-27 and 18A:72A-27.1 with the
authority , with respect to the acquisition, construction and financing
of any educational facility;
b. To enter into any other agreement with
the authority , with respect to the acquisition, construction
or financing of an educational facility according to
terms and conditions which the authority and the board
of trustees shall determine in accordance with the
powers of the authority;
c. To pledge and assign all or any part
of any funds appropriated to the State college and
available for the purposes provided in subsections
a. and b. of this section or any other available monies
of the State college to the payment of any amount due
and owing under any agreement made under subsections
a. and b. of this section if that agreement expressly
states that the payment of any and all amounts due
and owing thereunder shall, to the extent the funds
shall be derived from appropriations, depend on appropriations
being made by the Legislature.
L. 1988, c. 159, s. 1.
2. The board of trustees of the public institution of higher education
shall submit a copy of a resolution approving any non-revenue producing
facility project to the President of the Senate and the Speaker of the
General Assembly and shall submit informational copies of the proposal
to the members of the Senate Budget and Appropriations Committee and the
Assembly Appropriations Committee and to the Commission on Higher Education.
The submission shall include all appropriate supporting information including,
but not limited to, a description of the project, its impact, cost and
construction schedule, and a detailed explanation of the sources of revenue
which will be dedicated to the financing of the project. If the Legislature
does not disapprove the proposal by the adoption of a concurrent resolution
within 45 days, the proposal shall be deemed to be approved.
L.1988,c.159,s.2; amended 1994, c.48, s.240; 1999, c.46, s.49; 1999, c.217,
s.14.
The board of governors of the university or the board
of trustees of the Newark College of Engineering or
the board of trustees of a State college or the board
of trustees of a county college such approve the plans
and specifications and location of each dormitory undertaken
for it or under its control, prior to the undertaking
thereof by the authority.
Amended by L.1971, c. 77, s. 4, eff. April 5, 1971.
18A:72A-29. All lands and other assets real or personal presently titled
in the name of the State Board of Higher Education or the State Department
of Higher Education, which are occupied by a public institution of higher
education shall be titled in the name of the State of New Jersey only.
All conveyances, leases and subleases, pursuant to this chapter shall be
made, executed and delivered in the name of the State and shall be signed
by the State Treasurer and sealed with the seal of the State.
To the extent not otherwise expressly provided under existing law, all
powers and duties conferred upon the university pursuant to this chapter
shall be exercised and performed by resolution of its board of governors
and all powers and duties conferred upon any of said colleges pursuant
to this chapter shall be exercised and performed by resolution of its board
of trustees.
All conveyances, leases and subleases made pursuant to this chapter, when
duly authorized by the university, shall be made, executed and delivered
in the name of the university and shall be signed by its president or a
vice president and sealed with the seal of the university and all conveyances,
leases and subleases made pursuant to this chapter, when duly authorized
by any of said colleges, shall be made, executed and delivered in the name
of the college and shall be signed by the president or a vice president
and sealed with the seal of the college.
Amended 1994, c.48, s.241; 1999, c.46, s.50.
In addition to the foregoing powers, the authority
with respect to private colleges, shall have power:
(a) upon application of the participating college to
construct, acquire or otherwise provide projects for
the use and benefit of the participating college and
the students, faculty and staff of such participating
college. The participating college for which such a
project is undertaken by the authority shall approve
the plans and specifications and location of such project;
(b) to operate and manage any project provided pursuant
to this section, or the authority may lease any such
project to the participating college for which such
project is provided. At such time as the liabilities
of the authority incurred for any such project have
been met and the bonds of the authority issued therefor
have been paid, or such liabilities and bonds have
otherwise been discharged, the authority shall transfer
title to all the real and personal property of such
project vested in the authority , to the participating
college in connection with which such project is then
being operated, or to which such project is then leased;
provided, however, that if at any time prior thereto
such participating college ceases to offer educational
facilities , then such title shall vest in the state
of New Jersey.
Any lease of a project authorized by this section shall be a general obligation
of the lessee and may contain provisions, which shall be a part of the
contract with the holders of the bonds of the authority issued for such
project, as to:
(i) pledging all or any part of the moneys, earnings, income and revenues
derived by the lessee from such project or any part or parts thereof, or
other personal property of the lessee, to secure payments required under
the terms of such lease;
(ii) the rates, rentals, fees and other charges to be fixed and collected
by the lessee, the amounts to be raised in each year thereby, and the use
and disposition of such moneys, earnings, income and revenues;
(iii) the setting aside of reserves and the creation
of special funds and the regulation and disposition
thereof;
(iv) the procedure, if any, by which the terms of such lease may be amended,
the amount of bonds the holders of which must consent thereto, and the
manner in which such consent may be given;
(v) vesting in a trustee or trustees such specified
properties, rights, powers and duties as shall be deemed
necessary or desirable for the security of the holders
of the bonds of the authority issued for such projects;
(vi) the obligations of the lessee with respect to
the replacement, reconstruction, maintenance, operation,
repairs and insurance of such project;
(vii) defining the acts or omissions to act which shall
constitute a default in the obligations and duties
of the lessee, and providing for the rights and remedies
of the authority and of its bondholders in the event
of such default;
(viii) any other matters, of like or different character,
which may be deemed necessary or desirable for the
security or protection of the authority or the holders
of its bonds.
The authority also shall have power:
(a) to make loans to any private college for the construction of projects
in accordance with a loan agreement and plans and specifications approved
by the authority. No such loan shall exceed the total cost of such project
and the equipment therefor as determined by the authority. Each such loan
shall be premised upon an agreement between the authority and the private
college as to payment, security, maturity, redemption, interest and other
appropriate matters.
(b) to make loans to any private college to refund
existing bonds, mortgages or advances given or made
by such private college for the construction of projects
to the extent that this will enable such private college
to offer greater security for loans for new project
construction.
For the purpose of obtaining and securing loans under section 18A:72A-31
every private college shall, notwithstanding the provisions of any other
law, have power to mortgage and pledge any of its real or personal property,
and to pledge any of its income from whatever source to repay the principal
of and interest on any loan made to it by the authority or to pay the interest
on and principal and redemption premium, if any, of any note, bond or other
evidence of indebtedness evidencing the debt created by any such loan;
provided that the foregoing shall not be construed to authorize actions
in conflict with specific legislation, trusts, endowment, or other agreements
relating to specific properties or funds.
Moneys of the authority received from any private college
in payment of any sum due to the authority pursuant
to the terms of any loan or other agreement or any
bond, note or other evidence of indebtedness, shall
be deposited in an account in which only moneys received
from private colleges shall be deposited and shall
be kept separate and apart from and not commingled
with any other moneys of the authority. Moneys deposited
in such account shall be paid out on checks signed
by the chairman of the authority or by such other person
or persons as the authority may authorize.
(a) Whenever the authority under section 18A:72A-30
undertakes to construct, acquire or otherwise provide
and operate and manage a project, the authority shall
be responsible for the direct operation and maintenance
costs of such project, but each private college in
connection with which such a project is provided and
operated and managed shall be responsible at its own
expense for the overall supervision of each project,
for the overhead and general administrative costs of
the private college which are incurred because of such
project and for the integration of each project operation
into the institution's educational program.
(b) Whenever the authority under section 18A:72A-30
undertakes to construct, acquire or otherwise provide
a project and to lease the same to a private college,
the lessee shall be responsible for the direct operation
and maintenance costs of such project and, in addition,
shall be responsible for the overall supervision of
each project, for the overhead and general administrative
costs of the lessee which are incurred because of such
project and for the integration of each project operation
into the lessee's educational program.
(c) Whenever the authority under section 18A:72A-31
makes loans for the construction of a project, the
private college at which such project is located shall
be responsible for the direct operation and maintenance
costs of such project and, in addition, shall be responsible
for the overall supervision of each project, for the
overhead and general administrative costs of the private
college which are incurred because of such project
and for the integration of each project operation into
the institution's educational program.
Any pledge of moneys, earnings, income or revenues
authorized with respect to private colleges, pursuant
to the provisions of this chapter, shall be valid and
binding from the time when the pledge is made. The
moneys, earnings, income or revenues so pledged and
thereafter received by the pledgor shall immediately
be subject to the lien of such pledge without any physical
delivery thereof or further act. The lien of any such
pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract or otherwise
against the pledgor irrespective of whether such parties
have notice thereof. No instrument by which such a
pledge is created need be filed or recorded in any
manner.
This chapter, being necessary for the welfare of the
state and its inhabitants, shall be liberally construed
to effect the purposes thereof.
Nothing contained in this chapter shall be deemed or
construed to create or constitute a debt, liability,
or a loan or pledge of the credit, of the state.
The foregoing sections of this chapter shall be deemed
to provide an additional and alternative method for
the doing of the things authorized thereby, and shall
be regarded as supplemental and additional to powers
conferred by other laws, and shall not be regarded
as in derogation of any powers now existing; provided,
however, that the issuance of bonds or refunding bonds
under the provisions of this chapter need not comply
with the requirements of any other law applicable to
the issuance of bonds.
The powers granted to the authority by this chapter
may be exercised without regard or reference to any
department or agency of the state. All other general
or special laws, or parts thereof, inconsistent with
this chapter are hereby declared to be inapplicable
to the provisions of this chapter. |
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