2009 New Jersey Code
TITLE 52 - STATE GOVERNMENT, DEPARTMENTS AND OFFICERS
Section 52:27BB
52:27BB-55 - Application of article

52:27BB-55.  Application of article
    The provisions of this article and sections 20 and 21 of this amendatory and  supplementary act 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.

     L.1947, c. 151, p. 663, s. 55.  Amended by L.1981, c. 211, s. 1, eff. July 20,  1981.