State Codes and Statutes

Statutes > New-jersey > Title-52 > Section-52-27 > 52-27-33

52:27-33.  Proceedings against municipality for assessment or collection of  taxes prohibited;  exceptions;  remedies of holders of unpaid claims against  municipality    Whenever the commission shall function in any municipality and so long as it  shall continue so to do, no action or proceeding of any kind, either direct or  ancillary, including a proceeding in lieu of prerogative writ, shall be brought  against such municipality or any public officers for the assessment, levy or  collection of taxes by or for such municipality and any and all actions or  proceedings therefor shall be and they hereby are stayed; except that first,  the Superior Court, after notice to the commission, may authorize one or more  creditors of such municipality to bring and maintain an action or proceeding  therefor in the Superior Court, which shall be brought for the benefit of  themselves and all other creditors of such municipality and in which all other  creditors of such municipality shall have the right to intervene and assert  their claim and in which all other creditors of such municipality may, and the  commission shall, be made parties in such manner and upon such notice as the  court shall prescribe;  and except that, second, the commission may bring and maintain an action or actions or a proceeding in lieu of prerogative writ or any other appropriate proceeding or proceedings for the assessment, levy or collection of taxes by such municipality for the payment of principal or interest of the indebtedness of the municipality found to be outstanding as provided in section 52:27-14 of this Title.

    Without limiting its power otherwise to direct by a proceeding in lieu of prerogative writ the assessment, levy or collection of taxes, the Superior Court, in the action or proceeding aforesaid may, to the extent which it shall deem just and equitable, afford to the holders collectively of any due and unpaid claims against a municipality any remedy which might be afforded under any other law to any individual creditor in any proceeding in lieu of prerogative writ for the assessment, levy or collection of taxes, to the same extent as if there had been an entry of judgment in their favor, issuance of execution and return thereof unsatisfied, service thereof upon public officials  and performance of any and all other conditions precedent to the affording of  such relief by a proceeding in lieu of prerogative writ under such other law;   provided, that the court be first satisfied from proof submitted by affidavit  or otherwise that the claims for the enforcement of which such remedy is sought are claims upon which a judgment could be obtained.

     Amended by L.1953, c. 49, p. 872, s. 35.