New Jersey § 39:3-40

§ 39:3-40.

a. A motor vehicle subject to the provisions of this act may be impounded by any law

enforcement officer if the registrant: (1) knowingly permits an unlicensed driver to operate that motor vehicle; (2) operates or permits the operation of that motor vehicle without a valid temporary

registration or valid temporary registration plates as authorized under section 3

of P.L.1995, c. 286 ( C. 39:3-40.2 ); or (3) fails to surrender a registration certificate and registration plates in accordance

with the provisions of subsection b. or c. of section 2 of P.L.1995, c. 286 ( C.39:3-40.1 ). A motor vehicle impounded under the provisions of this subsection shall be removed

to storage space or garage and its registration certificate and registration plates

seized. The registrant shall be responsible for the cost of the removal and storage of the

impounded motor vehicle. b. (1) If the registrant fails to claim the motor vehicle and pay the reasonable costs

of removal and storage by midnight of the 30th day following impoundment, along with

a fine of $50 to cover the administrative costs of the municipality wherein the violation

occurred, the municipality may sell the motor vehicle at public auction. The municipality shall give notice of the sale by certified mail to the registrant

of the motor vehicle and to the holder of any security interest filed with the director,

and by publication in a form to be prescribed by the director by one insertion, at

least five days before the date of the sale, in one or more newspapers published in

this State and circulating in the municipality in which the motor vehicle has been

impounded. (2) At any time prior to the sale, the registrant or other person entitled to the

motor vehicle may reclaim possession of it upon payment of the reasonable costs of

removal and storage of the motor vehicle and any outstanding fines or penalties;

provided, however, if the other person entitled to the motor vehicle is a lessor or

the holder of a lien on the motor vehicle, he may reclaim the motor vehicle without

payment. In such cases, the violator shall be liable for all outstanding costs, fines and

penalties, and the municipality shall have a lien against the property and income

of that violator for the total amount of those outstanding costs, fines and penalties. (3) Any proceeds obtained from the sale of a motor vehicle at public auction pursuant

to paragraph (1) of this subsection in excess of the amount owed to the municipality

for the reasonable costs of removal and storage of the motor vehicle and any outstanding

fines or penalties shall be returned to the registrant of the vehicle.