N.J. Admin. Code § 19:31-1.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 19:31-1.3 - Bond financing

(a) Typically, the bonds are secured by a loan agreement and a mortgage on project assets.

(b) The funds raised by the bond issue are loaned by the Authority to pay for eligible project costs. The borrower signs an agreement with the Authority pledging to make payments sufficient to cover principal and interest on the bond. This agreement is then assigned to the bond purchaser.

(c) The borrower makes payments directly to the bond purchaser or trustee.

N.J. Admin. Code § 19:31-1.3