Under which legal provision must funds deposited by an applicant for professional services be placed in an interest-bearing account?

The correct answer is NJSA 40:55D 53.1, which specifically addresses the requirement for municipalities to deposit funds provided by applicants for professional services into interest-bearing accounts. This provision ensures that any fees collected for services such as planning and engineering are not only safeguarded but also generate interest that can ultimately benefit either the municipality or the applicant.

This legal requirement is significant because it promotes transparency and accountability in the handling of applicant funds, while simultaneously ensuring that the applicant can potentially recover some interest on their deposited funds, which is especially important in longer processes where the utilization of funds may be delayed. This approach reflects an equitable practice in municipal operations regarding financial dealings with applicants seeking development approvals.