[Adopted 4-11-1979 by Ord. No. 696R]
[Amended 12-28-1999 by Ord. No. 99-25R]
No insurance company authorized to issue fire insurance policies
in the State of New Jersey shall pay to a claimant any claim in excess
of $2,500 for fire damages on any real property located within the
Borough pursuant to any fire insurance policy issued or renewed, unless
and until such time as:
A. The insured person submits an official certificate of search pursuant
to N.J.S.A. 54:5-12 certifying that either all taxes and assessments
and all other municipal liens or charges due and payable appearing
on the official certificate have been paid either by the owner of
such real property or by the insurance company or that a demolition
is not required; or
B. If the demolition has not yet occurred on the date of receipt by
the Borough of a request for execution of the certificate, the insured
shall provide on that certificate an estimate of the anticipate demolition.
The insurance company on notice to the insured shall pay the anticipated
cost of demolition to the Borough, 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.
C. The Borough submits to the insurance company a copy of a resolution adopted pursuant to §
177-2 of this article; 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.
[Amended 12-28-1999 by Ord. No. 99-25R]
A. Notwithstanding the provisions of §
177-1 of this article, an insurance company may pay proceeds of a fire insurance policy to a mortgagee of fire-damaged real property where the fire insurance policy at the time of the loss listed the mortgagee as a named insured; provided that said payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract.
B. A claim on behalf of the Borough shall be paramount to any other
claim on the 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 the fire-damaged property,
where the fire insurance policy at the time of the loss listed the
mortgagee as the holder of an insurable interest, in which event the
claim of the mortgagee to the proceeds shall be paramount to the Borough's
lien only to the extent of the amount due and payable to the mortgagee
under the mortgage contract. An insurance company, however, cannot
be obligated for any amount in excess of the proceeds payable under
the fire insurance policy or for any amount not appearing on an official
certificate or any changes submitted by the bonded official.