New Jersey Acts Saved from Repeal ACTS SAVED 32 § 7-2(13)

13. (a) Bonds issued hereunder when purchased by the sinking fund for investment shall be deemed outstanding. Bonds issued hereunder when held by the sinking fund may be canceled only from the surplus in the sinking fund which is over and above the sinking fund requirements. When the amount of sinking fund to the credit of any series of bonds shall be sufficient together with three and one-half per cent interest compounded annually to equal the principal of the outstanding bonds of such series at maturity, no further contributions shall be required to be made thereto except to make good any losses which may occur.

Investment of sinking fund moneys shall be limited to the bonds, notes and certificates of the government of the United States, bonds and negotiable notes of the state of New Jersey, and of any county, school district or municipality of this state.

(b) It shall be lawful for the sinking fund commission to purchase at private sale the bonds or negotiable notes of any county, school district or municipality of this state at the time of their original issuance, any laws relating to the public sale thereof to the contrary notwithstanding.

It shall be lawful for the sinking fund commission to purchase at private sale any bonds issued by the state (including bonds issued hereunder) at the time of their issuance, any law relating to the public sale thereof notwithstanding. To effectuate such purpose, the issuing officials may, by resolution, set apart a portion of the bonds of any series at the time of issue and sell same to the sinking fund and offer the remainder of said bonds to the public.