N.J. Stat. tit. 42, ch. 6

in effect

N.J. Stat. § 42:6-1 Application for injunction and receivers or trustees; procedure

When any voluntary association, carrying on business with partnership liabilities, is or shall become insolvent, has suspended or shall suspend its ordinary business for want of funds to carry on the same, or whose debts are unpaid and whose business is unsettled, any creditor or member of such association may in an action apply to the Superior Court for injunctive relief and the appointment of receivers or trustees for the winding up of the business and payment of the debts of the association. Thereupon the court may proceed in the action in a summary manner or otherwise and the proceedings shall be as near as may be similar to those provided by law for winding up insolvent corporations. Amended by L.1953, c. 40, p. 767, s. 35, eff. March 19, 1953.

N.J. Stat. § 42:6-2 List of members filed with clerk of Superior Court

Upon the commencement of the action process shall issue, directed to the trustees or managers of the association as in other cases, who shall, on penalty of being proceeded against as for contempt, file, with the clerk of the Superior Court within ten days after service of process, a duly verified list of the names of all members of the association, with their several places of residence. Such members shall be made defendants to the action. Amended by L.1953, c. 40, p. 768, s. 36, eff. March 19, 1953.

N.J. Stat. § 42:6-5 Notice to creditors to file claims

The receivers or trustees appointed for the association shall give such notice as the court may direct to the creditors thereof, requiring them to file with them any claims they may have against the association, within such time as the court may direct, or be barred from all relief under the proceedings had by virtue of this chapter. Amended by L.1953, c. 40, p. 768, s. 39, eff. March 19, 1953.

N.J. Stat. § 42:6-7 Assessments on members to pay claims

If it shall appear by the report filed by the receivers or trustees that the assets of the association are insufficient to pay its debts and the expenses attending the winding up of the same, the court may assess against each member thereof a sum to be paid by him to the receivers or trustees in liquidation of such indebtedness. In making the assessment, the court may inquire into the solvency or ability of the members to pay the same, in order to assess sufficient moneys to pay all claims. If a sufficient amount to pay all claims is not assessed at one time, the court may, from time to time, make additional assessments, until an amount sufficient to satisfy all claims is obtained. Amended by L.1953, c. 40, p. 768, s. 41, eff. March 19, 1953.

N.J. Stat. § 42:6-8 § 42:6-8

The receivers or trustees of the association shall have authority to maintain, in their own names as receivers or trustees, actions in any court of competent jurisdiction in this state for the collection of the amounts assessed against the members of the association.

N.J. Stat. § 42:6-9 § 42:6-9

If, on the final account of the receivers or trustees, it shall appear that, as a result of the assessments made under section 42:6-7 of this title, more funds have been realized and remain unexpended in the hands of the receivers or trustees than are necessary to satisfy all claims against the association and the expenses of the proceedings under this chapter, such surplus shall be repaid pro rata to those who have contributed thereto.

N.J. Stat. § 42:6-10 § 42:6-10

Upon the final settlement of the accounts of the receivers or trustees and the payment of the debts of the association, the same shall be dissolved.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026