[HISTORY: Adopted by the Mayor and Borough Council of the Borough
of Gibbsboro 7-17-1979 by Ord. No. 79-8
(Ch. 103 of the 1982 Code); amended in its entirety at time of adoption of
Code (see Ch. 1, General Provisions, Art. II). Subsequent amendments noted
where applicable.]
Pursuant to the authorization of N.J.S.A. 17:36-8 et seq., there is
hereby adopted an ordinance to ensure the payment of taxes, assessments or
other municipal liens due and payable on real property in the Borough of Gibbsboro
when said property is covered by fire insurance in excess of $2,500 and is
damaged or destroyed by fire and to ensure that, if demolition is required,
the costs of demolition have been paid or escrowed.
This chapter shall apply to any fire insurance policy issued or renewed
after the adoption of this chapter and after the filing of this chapter with
the State Commissioner of Insurance.
A.
The payment to a claimant by any fire insurance company
authorized to issue fire insurance policies in this state of any claim in
excess of $2,500 for fire damages on any real property located within the
Borough of Gibbsboro is hereby prohibited until:
(1)
Such time as all taxes and assessments or charges due
and payable appearing on an official certificate of search for Borough liens
pursuant to N.J.S.A. 54:5-12 dated subsequent to the fire shall have been
paid either by the owner of such real property or by the insurance company
pursuant to the provisions of this chapter; or
(2)
The Borough submits to the insurance company a certified copy of a resolution adopted pursuant to the provisions of § 176-5 of this chapter.
(3)
In addition, prior to payment, the insured is required
to submit an official certificate executed by the Borough of Gibbsboro that
demolition is not required or the costs of demolition have been paid.
B.
If the demolition has not yet occurred on the date of
receipt by the Borough of a request for execution of the certificate required
by this section, the insured shall provide on that certificate an estimate
of the anticipated costs of demolition. The insurer on notice to the insured
shall then pay the anticipated costs of demolition to the Borough which shall
hold the funds in an interest-bearing escrow account until the demolition
occurs or the actual costs of demolition are determined and paid.
The official certificate of search may from time to time be altered
by the bonded official responsible for preparing such certificates in order
to correct any errors or omissions or to add any Borough liens or related
charges due and payable subsequent to the preparation of the official certificate.
If it is satisfied that the claim for fire damages is to be used to
restore or improve the fire-damaged property, the governing body of the Borough
may submit to the insurance company a certified copy of a resolution by which
it has entered into an agreement with the owner of any fire-damaged property
to accept payment in full of all delinquent taxes, assessments or other municipal
liens or charges in installments pursuant to N.J.S.A. 54:5-19 or for redemption
of the tax sale lien by installment payments pursuant to N.J.S.A. 54:5-65
et seq.
Unless a resolution is received in accordance with this chapter by an
insurance company writing fire policies in the Borough of Gibbsboro, such
insurance company is hereby authorized and required, prior to payment of any
claims for fire damages in excess of $2,500 to pay to the Borough of Gibbsboro
the amount of the liens appearing in the official certificate, or in any alteration
thereof pursuant to this chapter, and such other recorded liens or related
charges as may be certified to the insurance company; provided, however, that
if an appeal is taken on the amount of the lien or charge, other than an appeal
on the assessed valuation of real property pursuant to N.J.S.A. 54:3-21, the
insurance company shall withhold 75% of the full amount of the lien or charge
being contested, pending termination of all proceedings, at which time such
moneys and all interest accruing thereon at a rate paid on interest-bearing
accounts in banking institutions or savings and loan associations in the state
shall be disbursed in accordance with the final order or judgment of the court.
Except as provided in the case of appeals under this chapter, nothing
in this chapter shall be construed to obligate the insurance company for any
liens not appearing on the official certificate or in any certified changes
therein submitted to the insurance company by the bonded official.
The Borough's claim made in accordance with the provisions of this chapter
shall be paramount to any other claims on the proceeds of the fire insurance
policy, except the claim of a holder of a mortgage on the fire-damaged property,
where the fire insurance policy at the time of the loss listed the mortgagee
as a named insured, in which event the claim of the mortgagee to file process
shall be paramount to the municipal lien only to the extent of the amount
due and payable to the mortgagee under the mortgage contract.
Upon its adoption, this chapter and any subsequent amendment thereof
shall be filed with the New Jersey State Commissioner of Insurance as required
by law.
