New Jersey Revised Statutes § 40:43-21.1 - Refunding Pro Rata Share Of Indebtedness

40:43-21.1. Refunding pro rata share of indebtedness
When two or more municipalities have been created prior to May second, one thousand nine hundred and thirty-six, within the limits of a former municipality and the bonded indebtedness of said former municipality shall have been apportioned among the newly created municipalities in accordance with this article, and one or more but not all of such newly created municipalities shall desire to retire or refund any or all of the indebtedness so allocated to it or them by payment of the same or by the issuance of new bonds in discharge thereof, such municipality or municipalities may pay said allocated proportion of such indebtedness or refund all or any part thereof including interest accrued thereon by the issuance of new bonds under the provisions of any law of this state permitting the issuance of refunding bonds, provided the holders of the outstanding obligations of said former municipality shall agree to accept part payment thereof either in cash or in refunding bonds of the municipalities desiring to refund their respective shares of said obligations. As evidence of the receipt of payment on account of the principal of and interest on the outstanding obligations, the registered holders thereof shall execute a release which shall be stamped on each such obligation and which shall be in such form as shall have been approved by the governing body of the municipality. No payment shall be made or any refunding bond issued on account of any such outstanding obligations except to the registered holders of such obligations. Upon the above-mentioned release being duly executed by the registered holder of the outstanding obligation, such municipality or municipalities so released shall be relieved and discharged of any and all further liability in respect to the principal of and interest on each said outstanding obligation.

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Last modified: October 11, 2016