N.J. Admin. Code § 9A:12-1.7

Current through Register Vol. 56, No. 19, October 7, 2024

Section 9A:12-1.7 - Payment of principal and interest

(a) Each four-year public institution shall pay the Authority, or the bond trustee, if so directed by the Authority, one-third (1/3) and each four-year private institution shall pay the Authority, or bond trustee, if so directed by the Authority, one-half (1/2) of the amount necessary to pay the principal and interest on the portion of bonds allocated to finance the capital improvement projects for the institution and in accordance with its grant agreement.

(b) If an institution fails or is unable to pay to the Authority in full, when due, any such obligation of an institution to the Authority, an amount sufficient to satisfy the deficiency shall be retained by the State Treasurer from State aid or any other State appropriation allotted to the institution. As used in this subsection, "obligation of an institution" means any amount payable by the institution for the principal and interest on the bonds, notes, or other obligations of the Authority issued to finance projects for the institution under this program. The Authority shall notify the State Treasurer of the amount to be retained to satisfy the obligation of each institution. A copy of such notification shall be submitted to the Secretary.

Amended by 54 N.J.R. 444(a), effective 3/7/2022