[HISTORY: Adopted by the Borough Council of the Borough of Pemberton 8-19-1996 by Ord. No. 8-1996 (Ch. 39 of the 1975 code). Amendments noted where applicable.]
This chapter shall be known as an "Ordinance of the Borough of Pemberton Pursuant to N.J.S.A. 17:36-8 et seq. to Prohibit Payment of Claims for Fire Loss Prior to Payment of Borough Liens or costs."
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claim in excess of $2,500 for damages on any real property located within the Borough of Pemberton until such time as:
All taxes and assessments and all other municipal liens or charges due and payable, appearing on the official certificate of search for municipal liens, shall have been paid in full and a municipal certificate is issued stating that the cost of demolition has been paid; or
The municipality submits to the insurance company a copy of a resolution adopted pursuant to N.J.S.A. 17:36-11 (installment payments).
If an appeal is taken on the amount of any lien or charge, other than an appeal on an assessed valuation of real property, the insurance company shall issue a draft payable to the court of record, pursuant to N.J.S.A. 17:36-10, in an amount totaling 75% of the full amount of the lien or charge being contested, and the insurance company shall issue a draft payable to the municipality for the remaining 25% of the lien or charge being contested; provided, however, that the amount paid by the insurance company to the court and the municipality shall not exceed the proceeds payable under its insurance policy.
A municipal claim made in accordance with the provisions of this chapter shall be paramount to any other claims on the proceeds of the fire insurance policy, except the claim of a 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 a named insured, in which event the claim of the mortgagee to the proceeds shall be paramount to the municipal lien only to the extent of the amount due and payable to the mortgagee under the mortgage contract.
This chapter is adopted under and in accordance with P.L. 1978, c. 184, Section 1 et seq. (N.J.S.A. 17:36-8 et seq.), and any amendments and supplements thereto, and any regulations promulgated pursuant thereto, and anything herein contained to the contrary shall be controlled by said legislative enactment and regulations.