52:27-2 - Action where municipality defaults; judgment; powers and duties of commission - New Jersey Statutes

52:27-2.  Action where municipality defaults;  judgment;  powers and duties  of commission    Whenever it shall be made to appear to the Superior Court in an action brought by or on behalf of the holder of any notes or bonds of any municipality  of this State against the municipality, that the municipality has defaulted for  over sixty days in the payment of the principal or interest of any of its  outstanding notes or bonds held by the plaintiff, the court may proceed in the  action in a summary manner or otherwise.

    If it shall be established to the satisfaction of the court that the municipality is so in default, it may enter judgment to that effect.

    Upon the entry of the judgment, the commission shall have and exercise with  respect to such municipality the powers and duties prescribed by this chapter.

     Amended by L.1953, c. 49, p. 864, s. 27.