Henry J. Behnke, Plaintiff-Appellant v. New Jersey Highway Authority, Theodore D. Parsons, Attorney-General of the…

Summary

The Supreme Court of New Jersey affirmed the lower court's judgment, holding that the 1952 Guaranty Act, which obligates the State to unconditionally guarantee the payment of bonds issued by the New Jersey Highway Authority for the Garden State Parkway, does not violate the constitutional prohibition against loaning the State's credit because it is permissible under the related provisions governing state debt and voter approval. The Court interpreted the credit‑loan ban in conjunction with the debt‑liability clause and found the act to satisfy the constitutional requirements, while noting the dissent's disagreement.