No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claim in excess of $2,500 on any real property located within the Township of Cinnaminson pursuant to a fire insurance policy issued or renewed after adoption of this chapter and filing the same with the State Commissioner of Insurance until such time as all taxes, assessments and other municipal liens or charges due and payable appearing on an official certificate of search shall have been paid either by the owner of such real property or the insurance company pursuant to N.J.S.A. 17:36-8 et seq., unless a municipality shall submit to the insurance company a copy of the resolution adopted pursuant to §
277-2 of this chapter.
The Township Committee of the Township of Cinnaminson may enter into
an agreement with the owner of any fire-damaged property to pay in full all
delinquent taxes, assessments or other municipal liens by installments pursuant
to N.J.S.A. 54:5-19 or for the redemption of the tax sale lien by installment
payments pursuant to Article VII of Chapter 5 of Title 54 of the New Jersey
Revised Statutes if the Township Committee of the Township of Cinnaminson
is satisfied that the claim for fire damages is to be used to restore or improve
the fire-damaged property. An insurance company receiving a certified copy
of a resolution of agreement from the governing body of the municipality is
authorized to make full payment on the claim to the insured purpose.
Unless a resolution, as provided above, is received by an insurance
company writing fire insurance policies within the Township of Cinnaminson,
said insurance company is hereby required, prior to the payment of any claims
for fire damages in excess of $2,500, to pay to the municipality the amount
of any liens appearing on the official certificate and such reported liens
or related charges as may be certified to the insurance company; provided,
however, that if an appeal is taken on the amount of 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, at
which time such moneys and all interest accruing thereon at a rate paid on
interest-bearing accounts in banking institutions and savings and loan associations
of the state shall be disbursed in accordance with the final order of judgment
of the court.
This chapter shall take effect upon final passage, approval and publication
as required by law, provided that the Township Clerk shall cause a certified
copy of this chapter to be filed with the State Commissioner of Banking and
Insurance, and this chapter shall not be deemed effective until such time
as said filing occurs.