The governing body of Little Egg Harbor Township 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 7 of Chapter
5 of Title 54 of the Revised Statutes, or for the payment in full of any anticipated costs of demolition by installment, if the governing body of Little Egg Harbor Township 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 Little Egg Harbor Township is authorized to make full payment on the claim to the insured person.
A municipal claim made in accordance with the provisions of this article
shall be paramount to any other claims on the proceeds of the fire insurance
policy, except the claim of the holder of a purchase money mortgage held as
a first mortgage, or an institutional lender that is the holder of a mortgage
on the fire-damaged property in which the mortgagee is listed as the holder
of an insurable interest on the fire insurance policy at the time of the loss,
in which event the claim of the mortgagee to the proceeds shall be paramount
to the municipal lien under this act 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 state or federally chartered bank, savings bank, savings
and loan association, or insurance company. Nothing in this section shall
affect the authority of the municipality to enforce a municipal lien under
any other law of this state.
The provisions of this article are intended to be interpreted in conjunction
with N.J.S.A. 17:36-8 through N.J.S.A. 17:36-13, and the provisions of said
statutes and any amendments thereto are herein incorporated by reference.