What specific borrowing authority does the legislation provide?
A – Per N.J.S.A. 18A:22-44.2, a board of education may execute and deliver promissory notes on or before June 30 of the current budget year with a loan effective date no earlier than June 22. Pending legislation (bills A3981 and S2828) will change this to a loan effective date no earlier than June 8. (See Q24 for more information on effective dates for borrowing.) The notes must mature on or before the date of the payment of the delayed June state school aid payments and may be redeemable prior to maturity. The amount borrowed will constitute a general obligation of the board but will not constitute gross debt for purposes of N.J.S.A. 40A:2-43.
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