New Jersey § 52:27-45

§ 52:27-45.

Any such municipality may provide in any such plan or plans for the issuance of warrants

for the purpose of funding or refunding all or any part of the principal of and interest

on the indebtedness of such municipality including the principal of and interest on

the indebtedness of such municipality to any school district coterminous with said

municipality. Such warrants may be authorized by and issued, sold or exchanged pursuant to ordinance

or resolution, which ordinance or resolution shall provide for the creation of a special

fund or funds for the payment thereof in the manner hereinafter provided, and such

warrants shall be payable solely from said fund or funds. Such warrants shall be in such form and tenor and executed in such manner and shall

be dated at such time or times and shall bear interest at such rate or rates not exceeding

six per centum (6%) per annum, as the council or other governing body of such municipality

shall determine. Such warrants may contain a reservation of an option of redemption at such time

or times upon such terms and conditions and with such premiums as the council or other

governing body of such municipality may elect. Said warrants shall state upon their face that they are payable solely from such

special fund, naming the same, and shall be issued in registered form only. Payment of interest on said warrants shall be by check or bank draft and suitable

provisions for the registration of said warrants and the transfers of same and provisions

regarding the payment of interest shall be endorsed thereon. The ordinance or resolution authorizing the issuance of any such warrants shall

specify the source of revenue for the special fund therein created for the payment

thereof, which shall consist of all or a specified part of the proceeds of the sale

and other liquidation of real estate or rights or interests therein, acquired by the

municipality by virtue of the levy, collection and enforcement of taxes and special

assessments theretofore levied or confirmed and the certificates of tax sale or tax

and assessment title liens standing in the name of the municipality, theretofore acquired

and subsequent taxes and assessments accruing thereto (sometimes hereinafter referred

to collectively as “assets”). Such ordinance or resolution shall pledge the assets to such special fund.