[Added 8-21-2012 by Ord.
No. 15-12]
Whenever it shall be necessary or convenient to carry out its
powers under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1
et seq. ("the Redevelopment Law"), the governing body shall be empowered
to establish an escrow account to fund the services in accordance
with the terms and conditions herein.
[Added 8-21-2012 by Ord.
No. 15-12]
Such an escrow account is to be funded by a party seeking the
performance of the services.
[Added 8-21-2012 by Ord.
No. 15-12]
The amount deposited into the escrow account shall be as agreed
upon by the governing body and the depositor and may be replenished
as needed or as otherwise specified by the parties.
[Added 8-21-2012 by Ord.
No. 15-12]
Whenever an amount of money in excess of $5,000 shall be deposited
into an escrow account by a depositor, the money, until released or
applied to the purposes for which it is deposited, including the depositor's
portion of the interest earned thereon, except as otherwise provided
in this section, shall continue to be the property of the depositor
and shall be held in trust by the governing body.
[Added 8-21-2012 by Ord.
No. 15-12]
The governing body shall place the deposit in a banking institution
or savings and loan association in this state insured by an agency
of the federal government, or in any other fund or depository approved
for such deposits by the state, in an account bearing interest at
the minimum rate currently paid by the institution or depository on
time or savings deposits. The governing body shall notify the depositor,
in writing, of the name and address of the institution or depository
in which the deposit is made and the amount of the deposit.
[Added 8-21-2012 by Ord.
No. 15-12]
The governing body shall not be required to refund an amount
of interest paid on a deposit which does not exceed $100 for the year.
If the amount of interest exceeds $100, that entire amount shall belong
to the depositor and shall be refunded to the depositor by the governing
body annually or at the time the deposit is repaid or applied to the
purposes for which it was deposited, as the case may be; except that
the governing body may retain for administrative expenses a sum equivalent
to no more than 10% of that entire amount which shall be in lieu of
all other administrative and custodial expenses.
[Added 8-21-2012 by Ord.
No. 15-12]
Prior to the acceptance of any deposit monies, the governing
body shall enter into a written agreement with the Depositor that,
without limitation, identifies the designated redevelopment area,
and contains representations that (1) the money is to be held and
expended in accordance with this article, (2) the acceptance of any
deposit money does not ensure or suggest that the governing body will
ultimately authorize the documents or activity resulting from the
performance of the services, and (3) except in instances where the
depositor has already been designated as the redeveloper for the designated
redevelopment or rehabilitation area in accordance with the Redevelopment
Law, the acceptance of any deposit money does not ensure or suggest
that the depositor or any party of the depositor's choosing shall
be designated as the redeveloper of the designated redevelopment or
rehabilitation area. In no event shall the governing body enter into
such an agreement or accept such monies prior to the designation of
the subject area as an area in need of redevelopment or rehabilitation
and the adoption of a redevelopment plan, both in accordance with
the Redevelopment Law.
