New Jersey § 52:27-45

§ 52:27-45.

Any ordinance or resolution authorizing the issuance of warrants hereunder may contain

covenants of any such municipality to protect and safeguard the security and rights

of the holders of any such warrants, and without limiting the generality of the foregoing,

such ordinance or resolution may contain covenants as to (1) the manner in which warrants issued thereunder may be issued or be exchanged for

outstanding claims or evidences of indebtedness funded or refunded thereby and the

terms and conditions upon which such warrants may become a charge upon the special

fund or funds created by any such ordinance or resolution; (2) the collection, depositing, custody and disbursement of moneys or other assets

coming into any special fund or funds created hereunder for the payment of warrants,

including a specification of the depositaries to be designated to hold such deposits

and granting to such depositaries or other banks or trust companies authority to act

as fiscal agent of any such municipality for the custody of the moneys or other assets

held in any special fund or funds created hereunder, and to represent holders of such

warrants in the event of a default on same or in the event of a default in the performance

of any duty or obligation of any such board, municipality or the corporate authorities

thereof in connection therewith, with such powers and duties for the enforcement of

such warrants as such ordinance or resolution may provide; (3) the deposit of collateral security or indemnity bonds to secure the proceeds of

the liquidation of all moneys and assets under the control of the board, and limitations

on the amount, if any, of additional warrants or other claims or obligations of whatsoever

kind or nature which may be issued and payable from the special fund or funds established

in the ordinance or resolution authorizing issuance of warrants hereunder; (4) limitations upon the creation of additional liens or encumbrances on the real

estate or other assets to be liquidated by said board, the terms and conditions upon

which the real estate and other assets under the control of the board for liquidation

may be sold, exchanged, leased or otherwise disposed of, and the use or other disposition

of all funds received in the process of liquidation; (5) the validity and enforceability of the certificates of tax sale, or tax and assessment

title liens, and the title of the municipality to real estate or rights or interests

therein standing in the name of the municipality which shall have been pledged to

any special fund or funds created hereunder, and the obligation of any such municipality

to replace in said fund or funds additional assets of at least equal book value in

lieu of any such assets which have been declared by any court of competent jurisdiction

to be illegal or unenforceable; (6) such other covenants as may be deemed necessary or desirable to insure the speedy,

efficient and economical liquidation of the assets pledged to such special fund or

funds and the application of the proceeds thereof to the payment of the principal

of and interest on the warrants issued pursuant to such ordinance or resolution within

a reasonable time and at reasonable expense. The provisions of this act and of any such ordinance or resolution shall constitute

a contract with the holders of such warrants and the provisions thereof shall be enforceable

by a proceeding in lieu of a prerogative writ or any other appropriate action or proceeding

in any court of competent jurisdiction by the commission or by any owner or holder

of such warrants on behalf of himself individually or all other owners or holders

of said warrants.