• New Jersey Local Finance Board Proposes Rule to Make It Easier For Municipalities, Counties and School Districts to Refund Outstanding Bonds
  • March 13, 2012 | Authors: Michael C. Barnes; Brian P. Kowalski
  • Law Firms: Saul Ewing LLP - Philadelphia Office ; Saul Ewing LLP - Princeton Office
  • The Local Finance Board within the New Jersey Department of Community Affairs, Division of Local Government Services recently announced a proposed rule that would offer municipalities, counties and school districts the ability to refund outstanding long-term bonds without first obtaining Local Finance Board approval. Under current rules, issuers must receive approval from the Local Finance Board before final adoption of a refunding bond ordinance. This requirement imposes additional professional fees and expenses upon an issuer. Even more importantly, during the time it takes to apply for and receive Local Finance Board approval, interest rates can change and adversely affect the savings that can be realized by an issuer seeking to refund outstanding debt.