15A:14-13 - Liens by legal process - New Jersey Statutes

15A:14-13.  Liens by legal process
    a.  Every lien against the property of a corporation shall be void if:

    (1) The lien is obtained by attachment, judgment, levy or other legal process;  and

    (2) A receivership action against the corporation is commenced within 4 months after the date on which the lien was obtained, or if the lien is obtained after the commencement of the receivership action;  and

    (3) The assets of the corporation are distributed in the receivership action.

    b.  The property affected by any lien shall be discharged from the lien and  shall pass to the receiver, but the court may order that lien to be preserved  for the benefit of the corporation's creditors.  The Superior Court may direct  the conveyance of the property affected as may be proper or adequate to  evidence title thereto of the receiver.  The title of a bona fide purchaser of  the property shall be valid, but, if the title is acquired otherwise than by a  judicial sale held to enforce the lien, it shall be valid only to the extent of  the present consideration paid for the property.

     L.1983, c. 127, s. 15A:14-13, eff. Oct. 1, 1983.