New Jersey § 52:27bb-55

§ 52:27bb-55.

The provisions of this article and sections 20 and 21 of this amendatory and supplementary

act 1 shall take effect in a municipality when any of the following conditions exists: (1) A default exists in the payment of bonded obligations or notes for which no funds

or insufficient funds are on hand and segregated in a special trust fund. (2) Payments due and owing the State, county, school district or special district,

or any of them, are unpaid for the year just closed and the year next preceding that

year. (3) An appropriation for “cash deficit of preceding year” in an amount in excess of

4% of the total amount of taxes levied upon real and personal property for all purposes

in such preceding year, is required to be included in the next regular budget and

was required to be included in the budget for the year just closed; provided, however,

in establishing the excess, if any, over the 4% there shall first be deducted from

such appropriation the amount, if any, that was caused by the failure to receive miscellaneous

anticipated revenue from franchise and gross receipts taxes. (4) Less than 70% of the total amount of taxes levied for all purposes upon real and

personal property in the taxing district, in the year just closed and in the year

next preceding that year, respectively, were collected during the year of levy. (5) The appropriation required to be included in the next regular budget for the liquidation

of all bonded obligations or notes exceeds 25% of the total of appropriations for

operating purposes (except dedicated revenue appropriations) in the budget for the

year just ended. (6) A judicial determination of gross failure to comply with provisions of the “Local

Bond Law” ( N.J.S. 40A:2-1 et seq. ), the “Local Budget Law” ( N.J.S. 40A:4-1 et seq. ) or the “Local Fiscal Affairs Law” ( N.J.S. 40A:5-1 et seq. ) which substantially jeopardizes the fiscal integrity of the municipality. 1

N.J.S.A. §§ 52:27BB-66.1 and 52:27BB-95.1.