Which statute is cited for increasing the amount permissible under bond authority?

Which statute is cited for increasing the amount permissible under bond authority?

• A. N.J.S.A 40A:2-20
• B. N.J.S.A 40A:2-10
• C. N.J.S.A 40A:9-1
• D. N.J.S.A 52:39-?

Answer: (A)

The main idea here is that there is a specific provision in the Local Bond Law that allows a municipality to increase the amount of bonds it may issue when project costs rise beyond what was originally approved. That authority is found in N.J.S.A. 40A:2-20. It provides the mechanism to raise the authorized indebtedness, usually through an appropriate ordinance or resolution, while still operating within the state’s debt limits and the required procedural steps. The other statutes referenced do not grant this increase in bond authority. They govern other aspects of borrowing—such as the sale and delivery of bonds or apply to different topics entirely—so they don’t provide the basis for increasing the permitted bond amount.

The main idea here is that there is a specific provision in the Local Bond Law that allows a municipality to increase the amount of bonds it may issue when project costs rise beyond what was originally approved. That authority is found in N.J.S.A. 40A:2-20. It provides the mechanism to raise the authorized indebtedness, usually through an appropriate ordinance or resolution, while still operating within the state’s debt limits and the required procedural steps.

The other statutes referenced do not grant this increase in bond authority. They govern other aspects of borrowing—such as the sale and delivery of bonds or apply to different topics entirely—so they don’t provide the basis for increasing the permitted bond amount.