The rating on New Jersey Educational Facilities Authority's bonds reflects: The general creditworthiness of the state of New Jersey as lessee; The strong essentiality of funding capital expenditures for institutions of higher education statewide; The additional strength provided by the master contract structure; The state's demonstrated commitment, within both the administrative and legislative branches, to repaying its appropriations-backed obligations; and Strong contractual provisions that include an absolute and unconditional payment provision upon annual appropriation. The rating also recognizes the increased usage and importance of contractual debt within the state's overall capital bonding structure. The bonds are being issued pursuant to the provisions of the Higher Education Capital Improvement Fund Act, which became effective in 1999, and under the Higher Education
