App.A:4-9. Payment in lieu of taxes; default 2. The owner of such lands so herein exempt from taxation shall pay to the municipality within whose confines such land or any part thereof is located, during the time said property shall be exempt, an annual payment in lieu of taxes equal to five per cent (5%) of the amount paid to the state for its interest in that portion of the lands located in said municipality and so described in the indenture between the government of the United States and the obligor, said sum to be paid in semiannual installments on the first day of June and December of each year of said exemption period. Should default be made in said payments and continue for a period of ninety (90) days thereafter, then the exemption herein granted shall cease and said property enter the tax ratables of the municipality within which it is located. The said percentage herein required to be paid to such municipality or municipalities shall be disbursed by it in the same manner as tax receipts. (L.1934, c. 143, s. 2, p. 376.)
New Jersey Legal Code