New Jersey Statutes 40A:12A-69. Payment secured by mortgage
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Terms Used In New Jersey Statutes 40A:12A-69
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
6. In lieu of, or in addition to, the provisions of section 5 of P.L.2001, c.310 (C. 40A:12A-68), the municipality may provide in the agreement that the payment in lieu of taxes, if any, is to be secured by a mortgage. In that event the mortgage may also be assigned and pledged to the repayment of the bonds authorized herein.
The assignment of any mortgage that secures a payment in lieu of taxes, if any, may also be an absolute assignment of all or part of the municipality’s right, title, and interest in the mortgage and, to the extent assigned, any moneys realized from the foreclosure of the mortgaged property shall not be included in the general funds of the municipality.
After the bonds are paid and no longer deemed to be outstanding, the assignment of the mortgage shall terminate.
L.2001,c.310,s.6.