New Jersey § 40a:3-7

§ 40a:3-7.

a. Each municipality which issues qualified bonds shall certify to the State Treasurer

the name and address of the paying agent, the maturity schedule, interest rate and

dates of payment of debt service on such qualified bonds within 10 days after the

date of issuance of such qualified bonds. After receipt of such certificate the State Treasurer shall withhold from the amount

of business personal property tax replacement revenues, gross receipts tax revenues,

municipal purposes tax assistance fund distributions, State urban aid, State revenue

sharing and any other funds appropriated as State aid and not otherwise dedicated

to specific municipal programs payable to such municipality an amount of such business

personal property tax replacement revenues, gross receipts tax revenues, municipal

purposes tax assistance fund distributions, State urban aid, State revenue sharing

and any other funds appropriated as State aid and not otherwise dedicated to specific

municipal programs which will be sufficient to pay the debt service on such qualified

bonds as the same shall mature and become due. The State Treasurer shall, on or before each principal and interest payment date,

forward such withheld amounts to the paying agent for such qualified bonds for deposit

to the account established with such paying agent for the purpose of paying the debt

service on such qualified bonds. Notwithstanding any other provision of law to the contrary, a statutory lien and trust

is automatically and without further act or filing created and impressed upon the business personal property tax replacement revenues , gross receipts tax revenues, municipal purposes tax assistance fund distributions,

State urban aid, State revenue sharing , and any other funds appropriated as State aid and not otherwise dedicated to specific

municipal programs so payable to such municipality that are withheld or are required to be withheld by the State Treasurer under P.L.1976, c. 38 ( C.40A:3-1 et seq. ), which statutory lien and trust shall be paramount and superior to all other liens

and interests of any kind in favor of the holders of qualified bonds, for the sole

purpose of paying debt service on the qualified bonds issued pursuant to P.L.1976,

c. 38 ( C.40A:3-1 et seq. ). The lien created under this subsection for the benefit of bondholders is perfected

without delivery, recording, or notice. All such business personal property tax replacement revenues, gross receipts tax

revenues, municipal purposes tax assistance fund distributions, State urban aid, State

revenue sharing, and any other funds appropriated as State aid and not otherwise dedicated

to specific municipal programs that are withheld or are required to be withheld by

the State Treasurer under P.L.1976, c. 38 ( C.40A:3-1 et seq. ) shall be exempt from being levied upon, taken, sequestered , or applied toward paying the debts of the municipality other than for payment of

debt service on such qualified bonds. All such business personal property tax replacement revenues , gross receipts tax revenues, municipal purposes tax assistance fund distributions,

State urban aid, State revenue sharing , and any other funds appropriated as State aid and not otherwise dedicated to specific

municipal programs that are withheld or are required to be withheld by the State Treasurer under P.L.1976, c. 38 ( C.40A:3-1 et seq. ) shall be deemed to be held in trust for the sole purpose of paying the debt service

on such qualified bonds. b. The State of New Jersey hereby covenants with the purchasers, holders and owners,

from time to time, of qualified bonds that it will not repeal, revoke, rescind, modify

or amend the provisions of subsection a. of this section so as to create any lien

or charge on or pledge, assignment, diversion, withholding payment or other use of

or deduction from any business personal property tax replacement revenues, gross receipts

tax revenues, municipal purposes tax assistance fund distributions, State urban aid,

State revenue sharing or any other funds appropriated as State aid and not otherwise

dedicated to specific municipal programs to be apportioned and paid to any paying

agent of qualified bonds which is prior in time or superior in right to the payment

required by subsection a. of this section; provided, however, that nothing herein

contained shall be deemed or construed to require the State of New Jersey to continue

to make payments of business personal property tax replacement revenues, gross receipts

tax revenues, municipal purposes tax assistance fund distributions, State urban aid,

State revenue sharing or any other funds appropriated as State aid and not otherwise

dedicated to specific municipal programs or to limit or prohibit the State from repealing

or amending any law heretofore or hereafter enacted for the payment or apportionment

of said revenues or aid or the manner, time, or amount thereof. c. It being the original and continuing intent of the State that all such business personal

property tax replacement revenues, gross receipts tax revenues, municipal purposes

tax assistance fund distributions, State urban aid, State revenue sharing, and any

other funds appropriated as State aid and not otherwise dedicated to specific municipal

programs that are withheld or are required to be withheld by the State Treasurer under

P.L.1976, c. 38 ( C.40A:3-1 et seq. ) shall be subject to a statutory lien and trust, the provisions of P.L.2015, c. 95 shall apply to all qualified bonds whether issued prior to or following enactment

of that act . All persons shall be forever estopped from denying that qualified bonds , whenever issued pursuant to subsection a. above, are entitled to the benefits of the provisions of P.L.1976, c. 38 ( C.40A:3-1 et seq. ), including but not limited to the statutory lien and trust created pursuant to subsection

a. of this section .