§ 40A:2-11 — Down payment.

40A:2-11. a. No bond ordinance shall be finally adopted unless it appropriates to the purpose, or ratably to the respective purposes to be financed, in addition to the obligations thereby authorized, a sum as a down payment which is not less than five percent of the amount of the obligations authorized. b. The sum so appropriated as a down payment shall have been made available prior to final adoption of the bond ordinance from any one or more of the following: (1) by provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes; (2) from moneys then actually held by the local unit and previously contributed for such purpose other than by the local unit; or (3) by emergency appropriation. c. The provisions of this section shall not apply to a bond ordinance which authorizes obligations solely for any purpose referred to in paragraphs a., b., c., d., e., and h. of N.J.S.40A:2-7; for those bond ordinances which involve projects funded by State grants such as Green Acres, Transportation Trust Fund, and other similar programs; or for those bond ordinances which involve environmental infrastructure projects or transportation projects, as defined in section 3 of P.L.1985, c.334 (C.58:11B-3), or hazard mitigation and resilience projects pursuant to section 5 of P.L.2023, c.63 (C.58:11B-5a), funded by loans from the "New Jersey Infrastructure Bank," created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4), or the State, acting by and through the Department of Environmental Protection. amended 2003, c.15, s.2; 2015, c.95, s.33; 2021, c.80, s.1; 2025, c.164, s.1.