New Jersey Turnpike Auth. v. Parsons

In New Jersey Turnpike Auth. v. Parsons, 3 N.J. 235, 242, 69 A.2d 875 (1949), the Court considered a challenge to the Turnpike Authority Act, which created the Turnpike Authority and empowered it to issue bonds payable from toll revenues, while expressly withholding any pledge of the faith and credit of the State. The Court held that the statute's explicit and unambiguous language "entirely negatives any possibility of the proposed bonds being in any manner debts or liabilities of the State by providing . . . that the bonds of the Turnpike Authority 'shall not be deemed to constitute a debt or liability of . . . or a pledge of the faith and credit of the State.'" Id.at 242, 69 A.2d 875; accord Clayton v. Kervick, 52 N.J. 138, 244 A.2d 281 (1968) (holding that statute authorizing the issuance of bonds by the EFA to construct facilities for participating higher educational institutions which were then leased by the authority to the institutions to pay the cost of the project, including the principal and interest on the bonds, does not violate the Debt Limitation Clause).