[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."
A.
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:
(1)
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
(2)
The municipality submits to the insurance company a copy
of a resolution adopted pursuant to N.J.S.A. 17:36-11 (installment payments).
B.
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.
C.
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.
