New Jersey Statutes 40:14B-78. Acceptance of performance, maintenance guarantee which is irrevocable letter of credit
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Terms Used In New Jersey Statutes 40:14B-78
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- State: extends to and includes any State, territory or possession of the United States, the District of Columbia and the Canal Zone. See New Jersey Statutes 1:1-2
16. The municipal authority shall, for the purposes of section 11 of P.L.1999, c.11 (C. 40:14B-73), accept a performance guarantee or maintenance guarantee which is an irrevocable letter of credit if it:
a. Constitutes an unconditional payment obligation of the issuer running solely to the municipal authority for an express initial period of time in the amount determined pursuant to section 11 of P.L.1999, c.11 (C. 40:14B-73);
b. Is issued by a banking or savings institution authorized to do and doing business in this State;
c. Is for a period of time of at least one year; and
d. Permits the municipal authority to draw upon the letter of credit if the obligor fails to furnish another letter of credit which complies with the provisions of this section 30 days or more in advance of the expiration date of the letter of credit or such longer period in advance thereof as is stated in the letter of credit.
L.1999,c.11,s.16.