N.J. Admin. Code § 6A:26-10.8

Current through Register Vol. 56, No. 17, September 3, 2024

Section 6A:26-10.8 - Lease-purchase agreements entered into prior to July 18, 2000

(a) Approved lease-purchase agreements in excess of five years duration shall be accorded the same accounting treatment as school bonds. The payments by a school district on such lease-purchase agreements shall be considered debt service and may be eligible for State debt service aid under EFCFA.

(b) The provisions of 6A:26-10.6 and 10.7 shall apply to lease-purchase agreements entered into prior to July 18, 2000.

(c) A district board of education having entered into a lease-purchase agreement prior to July 18, 2000 for a capital project shall not terminate, change, or alter the approved lease-purchase agreement and accompanying legal documents without first obtaining the Division's written consent.

(d) Upon completion of a lease-purchase agreement entered into prior to July 18, 2000, a district board of education shall file with the Division the Official Statement (Prospectus) of the transaction.

(e) A school district that entered into a lease-purchase agreement prior to July 18, 2000, and applies for a State support under EFCFA for any school facilities project relating to a site or school building subject to the lessor's lien under the lease-purchase agreement shall be required to enter into an intercept agreement with the State and the lessor that provides the State shall have the right to withhold that portion of State support owed to the school district necessary to make timely payments under the lease-purchase and agent agreements if the school district fails to make timely payment of amounts owed under agreements. The State also shall have the right to apply the withheld State support to pay the school district's obligation, subject to available State appropriation. The Division's receipt of an intercept agreement executed by the school district and lessor, and acceptable to the Division, shall constitute a prior condition for the school district to receive State support under EFCFA for any school facilities project relating to a site or school facility subject to the lessor's lien under the lease-purchase agreement.

N.J. Admin. Code § 6A:26-10.8

Amended by R.2007 d.81, effective 3/19/2007.
See: 38 N.J.R. 4533(a), 39 N.J.R. 899(a).
In (a), (b) and (f), inserted "school" preceding "district" throughout.
Amended by R.2013 d.145, effective 12/16/2013.
See: 45 N.J.R. 1026(a), 45 N.J.R. 2557(a).
Section was "Lease purchase agreements entered into prior to July 18, 2000". Rewrote the section.