N.J. Stat. § App.A:4-32
Any city, borough, town, township, village or other municipality (hereinafter referred to as "municipality") shall have power to issue its negotiable bonds (hereinafter referred to as "refunding bonds"), pursuant to and within the limitations prescribed by this act, for the purpose of funding or refunding the principal of and/or accrued interest on any notes or bonds issued by such municipality and outstanding at the time the ordinance authorizing the issuance of such refunding bonds as hereinafter provided shall take effect, or any notes or bonds thereafter issued by such municipality for the purpose of renewing, funding or refunding such outstanding notes or bonds, but not including notes or bonds issued in anticipation of the collection of taxes levied for the fiscal year one thousand nine hundred and thirty-five, or subsequent fiscal years, or refunding bonds issued under this act or notes or bonds heretofore or hereafter issued under the act entitled "An act to authorize and regulate the issuance of bonds and other obligations and the incurring of indebtedness by county, city, borough, town, township, village or any other municipality, other than a school district" (Revision of 1935), approved the twentieth day of March, one thousand nine hundred thirty-five, or the act entitled "An act concerning the issuance of bonds by municipalities to pay, fund or refund certain bonds or other indebtedness," approved April fourth, one thousand nine hundred and thirty-four, or the acts amendatory of or supplemental to said acts. Any municipality shall have power to issue such refunding bonds in an amount not exceeding one per cent (1%) of the face amount of all bonds issued by it pursuant to this act, for the purpose of paying the cost of issuing said bonds, including legal expenses and a reasonable compensation or commission to financial agents employed to effect such funding or refunding.
N.J.S. § App.A:4-32