[HISTORY: Derived from the Revised General
Ordinances of the Borough of Fort Lee, 1978, adopted 3-1-1979, as
indicated in article histories. Amendments noted where applicable.]
[Derived from Ch. 13A of the 1978 Code]
As used in this article, the following terms
shall have the meanings indicated:
Chapter 184 of the Laws of 1978 of the State of New Jersey.
[1]The Borough of Fort Lee in the County of Bergen and State
of New Jersey.
The Mayor and Council of the Borough of Fort Lee.
All parties having an interest in the real estate affected
by fire damage and all parties insured under the terms and provisions
of the fire insurance coverage of the property damaged.
[1]
Editor's Note: See N.J.S.A. 17:36-8 et seq.
No insurance company authorized to issue fire
insurance policies in the State of New Jersey shall pay any claims
in excess $2,500 on any real property located within the borough unless
or until either:
A.Â
The insured person submits an official certificate
of search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying
that all taxes, assessments or other municipal liens or charges, levied
and assessed and due and payable to the borough against the property
have been paid; or
Any insurance company authorized to issue fire
insurance policies in the State of New Jersey on real properties located
within the borough be and is hereby prohibited from paying to a claimant
any claim in excess of $2,500 for fire damages on any real property
located within the borough pursuant to any fire insurance policy issued
or renewed after the final adoption of this article and after the
filing of this article with the New Jersey State Commissioner of Insurance,
until such time as either:
A.Â
All taxes and assessments and all other municipal liens or charges due and payable to the borough appearing on the official certificate of search shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 254-4 of this article and Section 3 of the Act; or
Unless a resolution is received in accordance with § 254-5 of this article and in accordance with Section 4 of the Act by an insurance company writing fire insurance policies on real property within the borough, such insurance company be and is hereby authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the borough the amount of the liens appearing on the official certificate 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 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 or savings and loan associations in this state shall be disbursed in accordance with the final order or judgment of the court.
Where the fire-damaged real property is located in the borough, the Borough Council may enter into an agreement with the owner of any fire-damaged property whereby the owner agrees 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 7 of Chapter 5 of Title 54 of the Revised Statutes,[1] if the Borough Council 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 by the Borough Council is authorized to make full payment
on the claim to the insured person.
[1]
Editor's Note: See N.J.S.A. 54:5-65 et seq.
A borough claim made in accordance with the
provisions of the Act and the provisions of this article 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 the proceeds shall be paramount to the municipal
lien under this article only to the extent of the amount due and payable
to the mortgagee under the mortgage contract.
Nothing in this article shall be construed:
A.Â
To obligate an insurance company for any amount in
excess of the value of the fire insurance policy on the property,
or the amount of the liability of the insurance company hereunder;
B.Â
Except as provided in the case of appeals under § 254-4 of this article, to obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by the bonded official; or
C.Â
To effect the authority of the borough to enforce
its municipal lien under any other law of the State of New Jersey.
The official certificate of search may from
time to time be altered by the bonded official responsible for preparing
such certificate, in order to correct any errors or omissions or to
add any municipal liens or related charges due and payable subsequent
to the preparation of the official certificate.
This article shall be filed with the New Jersey
State Commissioner of Insurance pursuant to the provisions of the
Act.
