[HISTORY: Adopted by the Mayor and Council
of the Borough of Prospect Park 4-9-2001 by Ord. No. 2001-3.
Amendments noted where applicable.]
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 fire damages to real property located within
the Borough, unless or until:
A.Â
All taxes, assessments and other municipal liens or
charges due and payable to the Borough of Prospect Park as indicated
on the official certificate of search for municipal liens shall have
been paid in full either by the owner of such real property or by
the insurance company as provided in N.J.S.A. 17:36-9; or
B.Â
The Borough of Prospect Park submits to the insurance
company a copy of a resolution adopted pursuant to N.J.S.A. 17:36-11.
The official certificate of search may from
time to time be altered by the bonded official responsible for preparing
such certificates, in order to cancel any error or omissions or to
add any municipal liens or related charges due and payable subsequent
to the preparation of the official certificate.
In the event an appeal is taken on the amount
of any lien or charge, other than an appeal on the 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 Borough
of Prospect Park 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.
Any claim on behalf of the Borough 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 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.
All fire insurance policies covering property
within the Borough, issued or renewed after the adoption of this chapter
and the filing of a copy of this chapter with the State Commissioner
of Insurance shall be subject to the provisions of this chapter.
The provisions of this chapter are intended
to be interpreted in conjunction with N.J.S.A. 17:36-8 through N.J.S.A.
17:36-13, and the provisions of said statutes are herein incorporated
by reference.
