[Adopted 2-13-1996 by Ord.
No. 1-96]
Pursuant to N.J.S.A. 17:36-8 et seq., a municipality is permitted to
adopt an ordinance to preclude fire insurance companies from paying insurance
proceeds to the insured until all delinquent taxes, assessments and municipal
liens are paid.
No insurance company authorized to issue fire insurance policies in
the State of New Jersey shall pay to an insured any claim in excess of $2,500
for fire damages on any real property located within the Borough of Franklin,
pursuant to any fire insurance policy issued or renewed after the adoption
of this article and the filing of this article with the State Commissioner
of Insurance, until such time as:
A. All taxes and assessments and all other municipal liens
or charges due and payable appearing on an official Certificate of Search
for Municipal Liens pursuant to N.J.S.A. 54:5-12 shall have been paid either
by the owner of such real property or by the insurance company; or
B. The borough submits to the insurance company a copy of
a resolution adopted, provided that if an appeal is taken on the amount on
any 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.
Notwithstanding the provisions of this article, an insurance company
may pay proceeds of a fire insurance policy to a mortgagee of fire damaged
real property where the fire insurance policy, at the time of the loss, listed
the mortgagee as a named insured, provided that the payment may not be in
an amount which exceeds that due and payable to the mortgagee under the mortgage
contract.
Upon adoption, a copy of this article shall be filed with Commissioner
of Insurance, pursuant to N.J.S.A. 17:36-9.