[HISTORY: Adopted by the Township Committee of the Township of Lumberton 1-16-1996 by Ord. No. 1996-1. Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 152.
Housing standards — See Ch. 168.
Smoke detectors — See Ch. 242.
[Amended 12-5-2019 by Ord. No. 2019-18]
No insurer issuing fire insurance policies in this state shall pay any claims for fire damages in excess of $2,500 on any real property located within the Township of Lumberton unless or until:
A. 
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 against said property have been paid; and
B. 
The insured person submits an official certificate, on a form prescribed and certified by the Township, that demolition is not required or that the cost of demolition has been paid; or the Township submits a certified copy of a resolution stating the same. If the demolition has not yet occurred on the date of receipt by the Township 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 pay the anticipated cost of demolition to the municipality, which shall hold the funds in an interest-bearing escrow account in a state or federally chartered bank, savings bank or savings and loan association in this state.
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 municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
Unless a resolution is received in accordance with § 149-4 of this chapter by the insurance company writing the fire insurance policy on property in the Township of Lumberton, such insurance company is hereby directed and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay to the township 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 in the state shall be disbursed in accordance with the final order or judgment of the Court.
The governing body of the Township of Lumberton 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 or charges 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, Chapter 5, Title 54, of the Revised Statutes[1] if the governing body of the Township of Lumberton 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 is authorized to make full payment on the claim to the insured person or entity.
[1]
Editor's Note: See N.J.S.A. 54:5-65 et seq.
A municipal 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 the proceeds shall be paramount to the municipal lien under this chapter only to the extent of the amount due and payable to the mortgagee under the mortgage documents.
This chapter is adopted under and in accordance with P.L. 1978, c. 184, § 1 et seq. (N.J.S.A. 17:36-8, et seq.), and any amendments and supplements thereto, and any regulations promulgated pursuant thereto, and anything herein contained to the contrary shall be controlled by said legislative enactment and regulations.