[Adopted 11-1-1982 by Ord.
No. 834-82]
No insurer issuing fire insurance policies in the State of New Jersey shall pay any claims for fire damages in excess of $2,500 on any real property located within the Township of Hamilton pursuant to a fire insurance policy issued or renewed after the adoption of this article and filing of the same with the State Commissioner of Insurance unless or until 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 either by the assessed owner or insurer, or the municipality submits a certified copy of a resolution adopted pursuant to §
195-4 of this article. Any request pursuant to this section for an official certificate of search for municipal liens shall specify that the search concerns fire-damaged property.
The official certificate of search referred to in §
195-1 of this article 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.
The Township Committee of the Township of Hamilton may enter into 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 line by installment payments
pursuant to Article 7 of Chapter 5 of Title 54 of the New Jersey Revised Statutes
if the Township Committee is satisfied that the claim for fire damages is
to be used to restore and improve the fire-damaged property. An insurance
company receiving a certified copy of a resolution of agreement from the Township
Committee of the Township of Hamilton is authorized to make payment on the
same to the insured person.
A municipal claim made in accordance with the provisions of this article
shall be paramount to any other claim on the proceeds of a fire insurance
policy except the claim of the holder of a purchase money mortgage held as
a first mortgage or an institutional lender which is a holder of a mortgage
on a fire-damaged property where the fire insurance policy at the time of
the loss listed the mortgage held as the holder of an insurable interest,
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. As used in this
section, "institutional lender" means any bank, savings bank or state or federally
chartered savings and loan association or insurance company.
Nothing in this article shall be construed:
A. To obligate an insurance company for any amount in excess
of the proceeds payable under its fire insurance policy;
B. Except as provided in the case of appeals under §
195-3 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. To effect the authority of the Township of Hamilton to
enforce a municipal lien under any other law of this state.
This article 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 article to be filed with the State Commissioner of Banking and
Insurance, and this article shall not be deemed effective until such times
as said filing occurs.