N.J. Stat. tit. 2A, ch. 49

N.J. Stat. § 2A:49-1 Action for recovery; jurisdiction; bond for costs

If moneys, funds or other property held or owned by any municipality or school district, or held or owned officially or otherwise for or on behalf thereof, have been or shall be, without right, obtained, received, paid, converted or disposed of, action for the recovery thereof or to recover damages or other compensation for such wrongful obtaining, receiving, paying, conversion or disposition, or both, may be maintained in any court of competent jurisdiction thereof, by 10 freeholders of such municipality or district who have paid taxes on real estate in such municipality or school district, within 1 year, in the name of and for and on behalf of such municipality or school district. Before any such action shall be maintained, such freeholders shall file with the clerk of such municipality or school district, a bond to the municipality or school district conditioned for the payment of the costs, if any, assessed against such municipality or school district, in said action, approved as to form and amount by a judge of the court in which such action is brought.

N.J. Stat. § 2A:49-2 Limitation of action

No action under this chapter shall lie unless the cause thereof shall have accrued within 6 years before its commencement.

N.J. Stat. § 2A:49-3 Disposition of recovery

Out of any recovery had in an action under this chapter, the expenses incurred in the action by the freeholders, including payments made or to be made for legal services in an amount to be approved by the court, shall be first deducted and the balance thereupon be paid into the treasury of the municipality or school district in whose behalf the action is brought.