{"data":{"id":"us-nj/n.j.-stat.-40a-5-42","jurisdiction":"us-nj","citation":"N.J. Stat. § 40A:5-42","heading":"Purchase and retirement of outstanding bonds;  procedure; duties  of Local Finance Board","body":"Any local unit, by resolution adopted by vote of at least two-thirds of the  full membership of the governing body, may at any time appropriate and apply  any unappropriated funds to the purchase and retirement of any of its then  outstanding bonds, notes or other obligations.  The purchase price may be the  face value, or may be below or above the face value of such bonds, notes or  other obligations.  Any such proposed purchase shall be subject to the  following provisions:\na.  Before adoption of the resolution, the governing body shall cause satisfactory proof to be filed with the bureau that such funds then are, or within a reasonable time will be, available.\nb.  Before contracting to purchase any bonds, notes or other obligations at  a price above their face value, the governing body shall submit such resolution  to the said bureau for approval by the Local Finance Board. Before taking  definite action, the said Local Finance Board may require the submission of  additional information and may require that the governing body of the local  unit shall call for public tenders of bonds, notes or other obligations on such  notice and subject to such rules as the board may prescribe.  On receipt of  such tenders, the governing body shall report them to the said Local Finance  Board together with a further proposed resolution for approval by that board.\nIn approving or disapproving any proposed purchase of bonds, notes or other  obligations, the said Local Finance Board shall find and determine whether such  appropriation of available funds is in the interest of the local unit, having  regard for (1) the prospective need of funds for other purposes, (2)  reasonableness of the price proposed to be paid, (3) any saving of interest to  result from retirement of the bonds, notes or other obligations at the price  proposed to be paid, (4) the equality and reasonableness of the debt service on  obligations which will remain outstanding, and (5) fairness to the holders of  other obligations.\nAfter purchase of any bonds, notes or other obligations, satisfactory proof  of cancellation of the bonds, notes or other obligations and of any coupons  thereto annexed shall forthwith be filed with the bureau by the chief financial  officer of the local unit.\nAny local unit, by resolution adopted by vote of at least two-thirds of the  full membership of the governing body may at any time appropriate to and pay  into any sinking fund maintained by such local unit any unappropriated funds;   provided, a certified copy of such resolution shall be submitted to the Local  Finance Board and the Local Finance Board, by resolution, shall determine that  it is satisfied by proof submitted to it that such funds then are, or within a  reasonable time will be, available, and shall consent to such appropriation.\nL.1960, c. 169, s. 1, eff. Jan. 1, 1962.  Amended by L.1977, c. 396, s. 7, eff. Feb. 23, 1978.","path":["TITLE 40A MUNICIPALITIES AND COUNTIES"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"f39b772ca77f32fd76a706a9e474aa9c408091d10e4c1ed75ab138e439715f20","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-40a-5-41","next":"us-nj/n.j.-stat.-40a-5-43"},"notice":"GroundRules: Original legal text. Not legal advice."}