32:2-23.10. Pledging of funds

The moneys in the General Reserve Fund of the Port Authority may be pledged in whole or in part by the Port Authority as security for or applied by it to the repayment with interest of any moneys which it may raise upon Narrows Bridge bonds issued by it from time to time and the moneys in said General Reserve Fund may be applied by the Port Authority to the fulfillment of any other undertakings which it may assume to or for the benefit of the holders of any such bonds.

Subject to prior liens and pledges (and to the obligation of the Port Authority to apply revenues to the maintenance of its General Reserve Fund in the amount prescribed by the General Reserve Fund statutes), the revenues of the Port Authority from facilities established, constructed, acquired or effectuated through the issuance or sale of bonds of the Port Authority secured by a pledge of its General Reserve Fund may be pledged in whole or in part as security for or applied by it to the repayment with interest of any moneys which it may raise upon Narrows Bridge bonds, and said revenues may be applied by the Port Authority to the fulfillment of any other undertakings which it may assume to or for the benefit of the holders of such bonds.

In the event that at any time the balance of moneys theretofore paid into the General Reserve Fund and not applied therefrom shall exceed an amount equal to 1/10 of the par value of all bonds legal for investment, as defined and limited in the General Reserve Fund statutes, issued by the Port Authority and currently outstanding at such time, by reason of the retirement of Narrows Bridge bonds the par value of which had theretofore been included in the computation of said 1/10 , then the Port Authority may pledge or apply such excess for and only for the purposes for which it is authorized by the General Reserve Fund statutes to pledge the moneys in the General Reserve Fund, and such pledge may be made in advance of the time when such excess may occur.

L.1956, c. 12, p. 42, s. 5.