New Jersey § 40a:12a-68

§ 40a:12a-68.

a. Payments required to be made in accordance with an agreement for payments in lieu

of taxes entered into under section 3 of P.L.2001, c. 310 ( C.40A:12A-66 ) shall be a continuous lien on the land or improvements thereon, or both, or a continuous lien on any leasehold interests

in the land or improvements thereon, or both, against which the ordinance is recorded on and after the date of recordation of both

the ordinance and the agreement, whether simultaneously or not, or the date of confirmation

of the special assessments, whichever is earlier. All subsequent payments in lieu of taxes thereunder, interest, penalties , and costs of collection which thereafter fall due or accrue shall be added and relate

back to and be a part of the initial lien. Upon recordation of the ordinance and agreement, payments in lieu of taxes shall

constitute an automatic, enforceable, and perfected statutory municipal lien for all purposes, including the federal bankruptcy code, regardless of whether the amount of the payments

to be made in lieu of taxes has been determined at the time the lien attaches to any

interest in the land, leasehold estate, or improvements, as applicable. A confirmation hearing process to determine the amount due shall not affect the

commencement or validity of the lien. Notwithstanding any other applicable law, for the purposes of the “Redevelopment

Area Bond Financing Law,” sections 1 through 10 of P.L.2001, c. 310 ( C.40A:12A-64 et seq. ), a municipal lien on a leasehold estate shall constitute a lien against such leasehold

estate only, unless the financial agreement specifically provides for a lien on the

underlying fee interest in the land. In any case, enforcement of a municipal lien on a leasehold estate shall be limited

to an in rem proceeding only. No municipal lien shall attach to any interest of a State entity unless such State

entity shall have expressly consented to such lien in the financial agreement . b. If bonds are issued, the municipality, the redeveloper or the State entity redeveloper,

as the case may be, may record, either simultaneously or at different times, any ordinance

enacted by the municipality relating to the payment in lieu of taxes agreement or

special assessments and, either simultaneously with the ordinance or at different

times, a copy of the agreement or agreements. The ordinance, when recorded, shall contain a legend at the top of the front page

substantially as follows: “THIS ORDINANCE SECURES BONDS OR OTHER OBLIGATIONS ISSUED IN ACCORDANCE WITH THE PROVISIONS

OF THE 'REDEVELOPMENT AREA BOND FINANCING LAW' AND THE LIEN HEREOF IN FAVOR OF THE

OWNERS OF SUCH BONDS OR OTHER OBLIGATIONS IS A MUNICIPAL LIEN SUPERIOR TO ALL OTHER

NON-MUNICIPAL LIENS HEREAFTER RECORDED.” c. Notwithstanding any law to the contrary, upon recordation of both the ordinance

and any accompanying agreement, the lien thereof shall be perfected for all purposes

in accordance with law and the lien shall thereafter be superior to (1) all non-municipal liens thereafter recorded or otherwise arising, and (2) all prior liens where lienholder consents, without any additional notice, recording, filing, continuation filing , or action, until the payment in full of the bonds. The lien thereby established shall apply not only to the bonds initially issued,

but also to any refinancing or refunding thereof, as well as to any additional bonds

thereafter issued on a parity therewith in accordance with the provisions of the original

documents securing the initial bonds; provided, however, that in the event any ordinance

or agreement is amended or supplemented in a way which increases the amount of payment

in lieu of taxes or special assessments, the lien as to that increase shall be perfected

and apply upon the recordation of the amended or supplemented ordinance and agreement

(including the above-recited legend). Except as set forth in this section, no amendment or supplement to the ordinance

or agreement thereafter recorded shall affect the perfection or priority of the lien

established upon original recordation thereof. d. Upon the final payment in full of any bonds secured as provided in this section

and section 4 of P.L.2001, c. 310 ( C.40A:12A-67 ), the lien established hereby shall terminate, and the trustee shall record a notice to that effect.