[HISTORY: Adopted by the Board of Trustees of the Village of Cobleskill as indicated in article histories. Amendments noted where applicable.]
[Adopted 4-17-2000 by L.L. No. 1-2000]
The intent of this chapter is to authorize the village to file liens against the proceeds of fire insurance policies under § 22 of the General Municipal Law of the State of New York. The Board of Trustees hereby finds that this legislation is necessary for the health, safety and welfare of the residents of the Village of Cobleskill. The village has too many buildings that have been destroyed by fire, which have not been repaired by their owners in a timely fashion. This chapter will help to ensure that such buildings are secured and repaired by their owners to the extent that fire insurance proceeds are available to carry out such work.
As used in this chapter, the following terms shall have the following meanings:
- The fire insurance proceeds fund created under this section.
- Any lien, including liens for taxes, special ad valorem levies, special assessments and municipal charges, arising by operation of law against real property in favor of the village and remaining undischarged for a period of one year or more.
- REAL PROPERTY
- Property upon which there is erected any residential, commercial or industrial building, except one- or two-family, owner-occupied residences.
- SPECIAL LIEN
- A lien upon fire insurance proceeds under this chapter.
- The Superintendent of Planning, Environment and Code Enforcement of the village.
The Mayor is hereby authorized to file a notice of intention to claim against the proceeds of fire insurance policies under § 22 of the General Municipal Law of the State of New York. The notice shall be filed with the State Superintendent of Insurance for entry in the index of liens maintained by him or her as provided in § 331 of the Insurance Law of the State of New York.
Before the payment of any proceeds of a policy of insurance for damages caused by fire to real property, which policy insures the interest of the owner and is issued on real property located within the village, and following notification to the Commissioner by an insurer of the filing of a claim for payment of such proceeds, the Mayor shall claim, by serving a certificate of lien, against such proceeds to the extent of any liens (including interest and penalties to the date of the claim) thereon, which claim, when made and perfected in the manner provided for in § 22 of the General Municipal Law of the State of New York and § 331 of the Insurance Law of the State of New York, shall constitute a special lien against such proceeds, prior to all other liens and claims except for the claim of a mortgagee of record named in such policy. Notice of service of the certificate of the special lien shall be given to the insurer by certified mail.
The provisions of this section shall not be deemed or construed to alter or impair the right of the village to acquire or enforce any lien against real property but shall be in addition to any other power provided by law to acquire or enforce such right.
Any certificate issued by the Superintendent under this section shall be for the purpose of preserving and evidencing the right of release of the special lien created by this section and shall not be deemed to be a contract subject to village regulation. Any repair or restoration performed in anticipation of a release or insurance proceeds shall not be deemed to be a public work nor to have been done under village contract.
All or part of the proceeds of a policy of insurance that will or have been paid to the village under this chapter may be paid or released to the insured if the insured satisfies the Superintendent that the affected premises have been or will be repaired or restored, that such repairs or restoration is in the public interest, and the insured is issued and complies with a certificate provided by the Superintendent under this section. To secure such payment or release of proceeds the insured must notify the Superintendent of his or her intention to repair or restore the affected premises and must file with the Superintendent a complete application under § 64-6 below within 45 days of the mailing of the notice of service of the certificate of the special lien as provided in § 64-4 above, unless the Superintendent grants an extension for a stated time.
The return to the insured of any amount of such proceeds shall be subject to the following conditions:
Such release or return shall be conditioned on the repair or restoration of the affected premises, in agreement with the Village of Cobleskill Code and the Uniform Fire Safety and Building Code, to the condition it was prior to the time the lien of the village arose, or to an improved condition.
The insured shall file with the Superintendent an application in affidavit form with supporting documentation. The affidavit shall contain the following information:
A complete description of the nature and extent of damage to the insured premises and the condition of the premises prior to the time the lien of the village arose.
A complete description of the nature of the repairs or restoration to be undertaken and the cost thereof.
An estimated time schedule for repairs or restoration.
Such other information as may be required by the Superintendent to enable him or her to determine whether the repairs or restoration is in the public interest and will be or have been timely and promptly made.
Upon approval by the Superintendent of an application made hereunder, the Superintendent may issue a certificate evidencing the right to release to the insured amounts representing insurance proceeds, upon such conditions as may be set forth therein. The repairs or restorations shall be completed in compliance with the terms and conditions of the certificate prior to the release or return of any part of the insurance proceeds. Notwithstanding the foregoing, the Superintendent may upon the written request of the insured approve prior release of such proceeds or a portion thereof, in a lump sum or in installments, where the insured certifies and demonstrates that such release is required to permit such repairs or restorations to go forward. Any such insurance proceeds released or returned prior to the completion of the repairs or restoration may be paid directly to the contractor or contractors responsible for making such repairs or restoration. Such payment shall, to the extent thereof, release the village from further liability to the insured.
The insured's right to assert a claim against the insurance proceeds shall terminate if he or she:
Fails to notify the village of his or her or its intention to repair or restore the affected premises as described in § 64-5;
Fails to obtain a certificate from the Superintendent or to comply therewith within the time set forth, except to the extent that the proceeds exceed the amount of the lien.
Until such termination, any insurance proceeds received by the village shall be deposited in a special fund and shall be retained therein. Upon termination of the insured's rights to claim against the proceeds, the proceeds and any interest accrued thereon shall be applied to the liens affecting the premises and may be transferred to the general fund of the village.
The lien or liens against the affected premises upon which the special liens against proceeds are based shall be continued in full force and effect except to the extent that such lien or liens are or have been paid.