40:37B-20. Public sale of bonds upon sealed proposals; exceptions; deposit; confirmation of private sale

253 words·~1 min read·/nj/title-40/chapter-37b/40-37b-20

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

All bonds shall be sold at public sale upon sealed proposals, except that bonds may be sold at private sale:

(a)Without any previous public offering

(1)if constituting all or part of an authorized issue of $20,000.00 or less; or

(2)if sold to any board, body, agency, commission, instrumentality, district, authority or political subdivision of any local unit, or of the State, or of the Federal Government; or

(b)if no legally acceptable bid is received at advertised public offering, such bonds or any of them may be sold within 30 days after the advertised date for public bidding; provided, however, that no bonds shall bear interest at any rate of interest which is higher than the rate or maximum rate specified in the notice of sale, nor contain substantially different provisions from those specified in said notice.

Any purchaser of bonds at private sale, other than a public body, shall deposit a certified or cashier's or treasurer's check drawn upon a bank or trust company in an amount equal to 5% of the amount of bonds purchased and such amount shall be applied as in the case of a deposit made at a public sale.

Any private sale of bonds shall be made or confirmed by resolution of the authority adopted by not less than a 2/3 vote of the full membership thereof, setting forth the date, maturities, interest rate and price of the bonds and the name of the purchaser.

L.1967, c. 136, s. 20, eff. June 28, 1967.