[HISTORY: Adopted by the Common Council of
the City of Kingston 8-7-1984 by L.L. No. 3-1984, approved 8-28-1984,
as Ch. 52 of the 1984 Code. Amendments noted where applicable.]
As used in this chapter, any inconsistent provision
of law notwithstanding, the following terms shall have the following
meanings:
The Comptroller of the City of Kingston.
[Amended 12-16-1999 by L.L. No. 2-2000, approved
1-3-2000]
The Fire Chief of the City of Kingston.
[Amended 12-16-1999 by L.L. No. 2-2000, approved
1-3-2000]
Any lien, including liens for taxes, special ad valorem levies,
special assessments and municipal charges arising by operation of
law against property in favor of the city and remaining undischarged
for a period of one year or more.
Property upon which there is erected any residential, commercial
or industrial building or structure except a one- or two-family residential
structure.
A lien upon fire insurance proceeds pursuant to this chapter
and Chapter 738 of the Laws of 1977.
[Amended 12-16-1999 by L.L. No. 2-2000, approved
1-3-2000]
The Comptroller shall file a notice of intention
to claim against the proceeds of fire insurance policies pursuant
to § 22 of the General Municipal Law with the State Superintendent
of Insurance for entry in the index of liens maintained by him as
provided in § 331 of the Insurance Law.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000]
Prior to the payment of any proceeds of a policy
of insurance for damages caused by fire to real property, which policy
insures the interest of an owner and is issued on real property located
within the city, and following notification to the Comptroller by
an insurer of the filing of a claim for payment of such proceeds,
the Comptroller shall claim, by serving a certificate of lien, against
such proceeds to the extent of any lien (including interest and penalties
to the date of the claim) thereon, which claim when made and perfected
in the manner provided for in § 22 of the General Municipal
Law and § 331 of the Insurance Law, shall constitute a special
lien against such proceeds and shall, as to such proceeds, be prior
to all other liens and claims, except the claim of a mortgagee of
record named in such policy. Notice of the service of the certificate
of the special lien shall be given to the insured by certified mail
to the address as it appears on the records of the insurer.
The provisions of this chapter shall not be
deemed or construed to alter or impair the right of the city to acquire
or enforce any lien against property but shall be in addition to any
other power provided by law to acquire or enforce such right.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000; 3-5-2019 by L.L. No.
1-2019, approved 3-19-2019]
The Fire Chief or his designee is empowered, authorized and directed to administer the provisions of §§ 226-6 through 226-13 of this chapter. So far as practicable and subject to the approval of the Mayor, the services of all other city departments and agencies shall be made available by their respective heads to the Fire Chief or his designee for the carrying out of his or her functions.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000; 3-5-2019 by L.L. No.
1-2019, approved 3-19-2019]
Whenever the proceeds of policy of fire insurance which will be or has been paid to the city instead of an insured, all or part of such proceeds may be paid or released to the insured if the insured satisfies the Fire Chief or his designee that the affected premises have been or will be repaired or restored, that such repairs or restoration are in the public interest, and the insured is issued and complies with a certificate of the Fire Chief or his designee pursuant to this chapter. To secure such payment or release of proceeds, the insured must notify the Fire Chief or his designee, within 45 days after the mailing to the insured of a notice of the service of the certificate of special lien pursuant to § 226-3 hereof, of the intention to restore or repair the affected premises and must file with the Fire Chief or his designee a completed application with all required supporting documentation pursuant to § 226-7 of this chapter within 60 days thereafter, unless the Fire Chief or his designee grants an extension for a stated period of time.
The release or return to the insured of any
amounts to which he or it would otherwise be entitled to claim shall
be subject to the following conditions:
A.Â
Such release or return shall be subject to the repair
or restoration of the affected premises, in accordance with applicable
building laws, to the condition it was in prior to the time the lien
of the city arose, or to an improved condition.
B.Â
The insured shall file with the Fire Chief or his
designee an application in affidavit form with such supporting documentation
as he or she shall require containing the following:
[Amended 12-16-1999 by L.L. No. 2-2000, approved
1-3-2000; 3-5-2019 by L.L. No. 1-2019, approved 3-19-2019]
(1)Â
A complete description of the nature and extent of
the damage to the insured premises and of the condition of the premises
prior to the time the lien of the city arose.
(2)Â
A complete description of the nature of the repairs
or restoration to be undertaken and the cost thereof.
(3)Â
A statement as to the source of funds needed to complete
such repairs or restoration if the insurance proceeds are not sufficient
therefor.
(4)Â
The name and address of each contractor who will effect
such repairs or restoration.
(5)Â
An estimated time schedule showing how long the repairs
or restoration, and each phase thereof, will take.
(6)Â
Such other information as may be required by the Fire
Chief or his designee to enable him to determine whether the repairs
or restoration are in the public interest and will be or have been
timely and properly made.
C.Â
Upon a preliminary approval by the Fire Chief or his designee of an application pursuant to Subsection B of this section, he or she may issue a certificate evidencing the right of release to the insured of amounts representing insurance proceeds, upon such conditions as may be set forth therein. The repairs or restoration required shall be completed in compliance with the terms and conditions of the certificate prior to the release or return of any part of the insurance proceeds; provided, however, that the Fire Chief or his designee may, upon the written request of the insured and in his or her sole discretion, approve a prior release of such proceeds or a portion thereof, in a lump sum or in installments, where the insured certifies and demonstrates that such release is required to permit such repairs or restoration to go forward. Any such insurance proceeds released or returned prior to the completion of the repairs or restoration required by the Fire Chief or his designee may be paid directly to the contractor or contractors responsible for making such repairs or restoration. Such payment shall, to the extent thereof, release the Fire Chief or his designee from further liability to the insured.
[Amended 3-5-2019 by L.L.
No. 1-2019, approved 3-19-2019]
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000; 3-5-2019 by L.L. No.
1-2019, approved 3-19-2019]
If the insured fails to notify the city of his or its intention to repair or restore the affected premises as required in § 226-6 of this chapter; fails to file a completed application pursuant to this chapter; or fails to obtain a certificate from the Fire Chief or his designee or comply therewith within the time set forth, the right of the insured to assert a claim against the insurance proceeds, except to the extent they exceed the amount of the lien, shall terminate.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000]
Until such termination, any insurance proceeds
received by the city shall be deposited in a special fund and shall
be retained therein. Upon termination of the insured's right to claim
against the proceeds, the proceeds and any interest accrued thereon
shall be applied to the liens affecting the premises in a manner determined
by the Comptroller and may be transferred to the general fund.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000]
There shall be established in the office of
the Comptroller a fund for the deposit of fire insurance proceeds
to be held and applied in accordance with this chapter. Such funds
shall not be held together with the general tax levies in the general
fund.
The lien or liens against the affected premises
upon which the special lien against proceeds is based shall continue
in full force and effect except to the extent that such lien or liens
are or have been paid.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000; 3-5-2019 by L.L. No.
1-2019, approved 3-19-2019]
The Fire Chief or his designee may, pursuant
to this chapter, release, compromise or adjust the special lien upon
insurance proceeds created by this chapter. Any certificate issued
by such Fire Chief or his designee pursuant to this chapter shall
be for the purpose of preserving and evidencing the right of release
of the special lien created by this chapter subject solely to the
provisions of this chapter and shall not be deemed to be a contract
subject to city regulation. Any repair or restoration performed in
anticipation of a release of insurance proceeds shall not be deemed
to be a public work or municipal project nor to have been done pursuant
to a municipal contract.
[Amended 12-16-1999 by L.L. No. 2-2000; approved 1-3-2000; 3-5-2019 by L.L. No.
1-2019, approved 3-19-2019]
The Fire Chief or his designee shall be empowered
to promulgate rules and regulations and to adopt approved forms to
be used by applicants.
