By Chapter 738 of the Laws of 1977, the New York State Legislature amended
the General Municipal Law by adding § 22, and amended the Insurance
Law by adding §§ 33-a and 168-c; and said Chapter 738 of the
Laws of 1977 of the New York State Legislature provides that outstanding real
property taxes and other municipal charges constitute a lien against the proceeds
of fire insurance policies and provides for the enforcement thereof in certain
cases; and provisions of said Chapter 738 of the Laws of 1977 of the New York
State Legislature are incorporated by reference herein and made a part hereof.
The City of Watervliet may release or return to the insured any amounts
to which the City of Watervliet would otherwise be entitled to claim, provided
that the insured agrees with the City of Watervliet, in writing, to restore
the affected premises to the same or improved condition that it was in prior
to the time that the lien of the City of Watervliet against said fire insurance
proceeds arose.