New Jersey Acts Saved from Repeal ACTS SAVED 40 § 62-122.1(1)

1. The act to which this act is a supplement, as heretofore supplemented and amended, is hereby further supplemented by adding thereto, after section five-A, a new section to be known as section five-B, reading as follows:

5-B. (1) The commission appointed pursuant to the first section of this act and any succeeding commission however appointed or elected (hereinafter in this section referred to as “commission”), as a body politic and corporate of the state of New Jersey, is hereby authorized and empowered, on its sole faith and credit and subject to the limitations of this section, to borrow money and issue its negotiable notes therefor in anticipation of its receipts on account of fees, rentals and charges made or to be made for the sale of water. The proceeds of such notes shall be applied only to purposes to which such receipts could lawfully be applied, excluding, however, capital improvements or payments to municipalities of this state.

(2) Said notes shall be authorized by resolution of the commission, shall bear interest at a rate not exceeding six per cent (6%) per annum, shall be executed in the name of the commission by the president under the seal of the commission and attested by its secretary, shall be sold by resolution of the commission at not less than par at public or private sale and shall be corporate and unlimited obligations of the commission. Each such note shall mature within three months from the date thereof and may be renewed for additional periods of not exceeding three months each, but not beyond two years from the date of the original note, and each renewal note shall state on its face the date, amount and maturity date of the note or notes renewed by it.

(3) Prior to the authorization of said notes the commission shall require the treasurer to make and file a certificate, prepared as of a date not more than ten days prior to adoption of the resolution constituting such authorization, setting forth: (1) the total amount of outstanding, uncollected fees, rentals and charges made and billed for the sale of water by the commission, less any part thereof which are more than ten months in arrears; (2) the estimated fees, rentals and charges for the sale of water by the commission to be made and billed within three months thereafter; (3) the gross borrowing power of the commission under this section, being fifty per cent (50%) of the total of the amounts stated for the two preceding items; and (4) the total amount of notes outstanding or authorized but not issued pursuant to this section. Such certificate shall be quoted in full in the resolution constituting such authorization. No notes shall be authorized or issued pursuant to this section which shall, together with any other notes then outstanding, exceed the gross borrowing power as stated in such certificate. No notes shall be issued or delivered pursuant to any resolution of the commission except within thirty days from the date of adoption thereof.

(4) If any such notes shall be outstanding at the end of any fiscal year of the commission, then the rates for water to be charged by the commission shall within thirty days be so increased that, if such rates had been in force during such fiscal year, the gross cash receipts for such year would have been increased by not less than the amount of such outstanding notes, except and unless the then existing rates, had they been in force during the whole of such fiscal year, the gross cash receipts for such year would have been increased by not less than the amount of such outstanding notes. Such increased rates or such rates then in force shall not be reduced until at least one year after the end of such fiscal year.

(5) The powers granted by this section shall be in addition to any other powers now vested in the commission and shall not be subject to any limitation contained in any other section of this act, or of any acts amendatory thereof or supplemental thereto.