N.J. Stat. Ann. § 2A:56-21

The clerk or other officer of the court by whom an encumbrance is paid off shall procure satisfaction thereof to be acknowledged in the form required by law, and cause the encumbrance to be duly satisfied or canceled of record, and shall defray the expenses thereof out of the portion of the moneys in court belonging to the party by whom the encumbrance was payable, if there be enough for the purpose, but if not, then out of the money due the encumbrancer.