State Codes and Statutes

Statutes > New-jersey > Title-32 > Section-32-1 > 32-1-110

32:1-110.  Repayment of state advances
    The obligations for moneys so raised by the port authority on its own obligations for the construction of the said bridge and purposes incidental thereto shall constitute a lien upon the revenues and tolls therefrom in accordance with the terms and conditions of law upon which such moneys are raised, and any right or claim of the state, including that arising out of the appropriation made hereby, shall be subordinated to such lien.  The port authority shall, however, pay into the state treasury annually out of the revenues and tolls from the bridge, a sum equal to four per cent (4%) per annum  upon the unpaid balance of the amount actually advanced to the port authority  hereunder and applied to the bridge, as interest for that year, together with  at least two per cent (2%) of the principal of such advance until the whole sum  so advanced is repaid to the state;  provided, that the port authority shall  not make such payments until it shall have accumulated and only so long as and  for the years in which it holds out of the tolls or revenues of such bridge or  otherwise a reserve fund equal to ten per cent (10%) of its own obligations  issued in relation to or for the construction of such bridge, over and above  the sums required by the terms of such obligations to be set aside for  amortization or a sinking fund, and unless in said year the tolls or revenues  from the said bridge after the payment of all expenses for operation and  maintenance are sufficient to satisfy the interest and other contractual  requirements of said obligations;  and provided, further, that such payment  shall not be made into the state treasury unless there shall be available under  the same conditions sufficient money to make payment on similar terms to the  state of New York and that if there exists such surplus revenue, but  insufficient to make complete payment on such terms or conditions to both the  states of New York and New Jersey, then such surplus revenue shall be prorated  in accordance with the respective unpaid balances of the advances made by the two states and such prorated sum shall be paid into the state treasury in place  and stead of the amount above provided, to be applied first upon the interest  for the current year and the balance, if any, in reduction of principal.  The  intent hereof is that the port authority shall be required to and shall pay  interest to the state upon such advances, and/or make payments on account of  principal, only for the years when, and to the extent that, there shall be  available on the conditions herein provided a surplus from the revenues or  tolls for the payment of such interest and/or principal.

     L.1927, c. 3, s. 4, p. 18.