New Jersey § 17:3-2

§ 17:3-2.

When there shall come into the custody and control of a receiver or liquidator appointed

by a court of competent jurisdiction or under authority of any statute of this State,

or into the custody and control of any official of this State acting under authority

of the order, decree or judgment of a court or by virtue of any existing statute,

mortgages or mortgage securities constituting a part of the assets of any corporation

organized under the laws of this State and subject to the supervision and control

of the Department of Banking and Insurance or any superseding department or departments

of this State, and such receiver, liquidator or official is charged with the duty

of collecting such mortgages or mortgage securities, and if it shall be deemed by

such receiver, liquidator or official to be to the best interest of the creditors

and stockholders of any such corporation to accept bonds issued by the Home Owners'

Loan Corporation authorized pursuant to an Act of Congress, approved June thirteenth,

one thousand nine hundred and thirty-three, entitled “An act to provide emergency

relief with respect to home mortgage indebtedness, to refinance home mortgages, to

extend relief to the owners of homes occupied by them and who are unable to amortize

their debt elsewhere, to amend the federal home loan bank act, to increase the market

for obligations of the United States and for other purposes,” 1 in payment of such mortgages or mortgage securities, the receiver, liquidator or

official may accept the bonds issued by the Home Owners' Loan Corporation in payment

of the mortgage, mortgages or mortgage securities. 1

12 U.S.C.A. § 1461 et seq.