App.A:4-31.6. Pledge of delinquent special tax receipts to payment of notes; resolution; covenants and effect; remedies

6. Any issuing municipality may by resolution pledge to the equal and ratable payment of any notes issued or to be issued under this act, and described in such resolution, all or any specified part of receipts from any special taxes delinquent at the time of the adoption of such resolution, subject to the condition that the municipality may thereafter by similar resolution provide that the pledge be extended for the equal and ratable benefit and security of other notes theretofore or thereafter issued under this act. Any such resolution may contain covenants as to the application to the reduction of the debt of the municipality of any such receipts in excess of the amounts necessary for the purposes of the pledge and any extension of such pledge or any other such pledge theretofore or thereafter made pursuant to this act. Such receipts shall be held by the municipality as a trust fund for the purpose of fulfilling the terms of any such resolution. Any such resolution shall, if and to the extent provided therein, constitute a contract between the municipality and the holders of any notes, bonds or other debt to the payment of which such receipts under the terms of such resolution are to be applied, which may be enforced by mandamus or other appropriate action, suit or proceeding at law or in equity instituted by any such holder on behalf of all the other holders and/or by the owner of property subject to taxation in such municipality.

(L.1935, c. 199, s. 6, p. 480.)