[HISTORY: Adopted by the Township Committee
of the Township of Lumberton 1-16-1996 by Ord. No. 1996-1. Amendments noted where
applicable.]
[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.
