[HISTORY: Adopted by the Board of Commissioners
of the Township of Nutley 4-1-2003 by Ord. No. 2775 (§ 115-10 of
the 1978 Code). Amendments noted where applicable.]
Prohibition of payment by an insurance company for fire damage on any property located within the Township. No insurance company authorized to issue fire insurance policies in New Jersey shall pay to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Township of Nutley, pursuant to any fire insurance policy issued or renewed after the adoption of this chapter and the filing of this chapter with the State Commissioner of Insurance, 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 pursuant to N.J.S.A. 54:5-12, shall have been paid either by the owner of such real property or by the insurance company if the municipality submits to the insurance company a copy of a resolution adopted pursuant to § 338-2 of this chapter; provided, however that, if an appeal is taken on the amount of any lien or charge other than appeal on the assessed valuation of real property, pursuant to N.J.S.A. 54:3-21, the insurance company shall issue a draft payable to the court of record, to be held by the court in an interest-bearing escrow account in a banking institution or savings and loan association in the state, in an amount totaling 75% of the full amount of the lien or the charge being contested but not to exceed the proceeds payable under its insurance policy, and the insurance company shall issue a draft payable to the municipality for the remaining 25% of the lien or charge being contested, with the full amount paid by the insurance company to the court and the municipality not to exceed the proceeds payable under its insurance policy, pending termination of all proceedings, at which time such monies and all interest accruing thereon at a rate paid on interest-bearing accounts in banking institutions or savings and loan associations in the state shall be distributed in accordance with the final order or judgment of the court.
The Board of Commissioners of the Township of
Nutley may, by resolution, enter into an agreement with the owner
of any fire-damaged property situated in the Township of Nutley to
pay in full all delinquent taxes, assessments or other municipal liens
or costs of demolition by installments, pursuant to N.J.S.A. 54:5-19,
or for the redemption of a tax sale lien by installment payment, pursuant
to Article 7 of Chapter 5 of Title 54 of N.J.S.A., if the Township
of Nutley is satisfied that the claim for fire damages is to be used
to restore or improve the fire-damaged property. In the event of such
a resolution, a certified copy of said resolution shall be sent to
the insurance company, authorizing the insurance company to make full
payment on the claim to the insured.
Notwithstanding the provisions of § 338-1 of this chapter, 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.
