New Jersey Statutes Appendix - Former Title 3A Administration of Estates Decedents and Others 3A § 34-13

If, in a proceeding to sell real estate under authority of this chapter, any tax, assessment or water rent charged against such real estate is disputed, the court may direct that the real estate be sold free and clear of the disputed tax, assessment or water rent; that a sufficient sum to discharge such tax, assessment or water rent, with the interest to accrue thereon, be deposited with the clerk of the court to abide the result of the settlement of the dispute; and that when the tax, assessment or water rent is determined to be a legal lien on the real estate sold, it be paid out of the sum so deposited.

If the disputed tax, assessment or water rent is set aside, or found not to be a legal lien upon the real estate ordered to be sold, the sum deposited for the payment thereof shall be invested in the manner provided by this chapter; but if, when the disputed tax, assessment or water rent is set aside, a new tax, assessment or water rent is directed, the sum so deposited shall be chargeable with the payment thereof.

The court may, when it directs a sale and a deposit of a sum of money with the clerk as herein provided, direct that the interest on the disputed tax, assessment or water rent shall cease from the date of the sale, and that the interest to be allowed after that date shall be the amount allowed on the deposit made with the clerk.