New Jersey Statutes Title 18A. Education 18A § 72A-31

(a) to make loans to any participating institution for the construction or acquisition of projects in accordance with a loan agreement and plans and specifications, as appropriate, 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 participating institution as to payment, security, maturity, redemption, interest and other appropriate matters.

(b) to make loans to any participating institution to refund existing bonds, mortgages or advances given or made by such participating institution for the construction of projects to the extent that this will enable such participating institution to offer greater security for loans for new project construction or acquisition.