Disposal or encumbrance of utility

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40:14B-58. Disposal or encumbrance of utility

Neither the municipal authority nor any local unit shall have power to mortgage, pledge, encumber or otherwise dispose of any part of the utility system, except that the municipal authority may dispose of such part or parts thereof as may be no longer necessary for the purposes of the municipal authority. The provisions of this section shall be deemed to constitute a part of the contract with the holder of any bonds.

L.1957, c. 183, p. 674, s. 58, eff. Aug. 22, 1957.


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