If an appeal is taken on the amount of any lien
or charge, other than an 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 the state or federally chartered
bank, savings bank or savings and loan association in the state in
an amount totaling 75% of the full amount of the lien or 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
moneys and all interest accruing thereon at a rate paid on interest-bearing
accounts in state or federally chartered banks, savings bank or savings
and loan association to the state shall be disbursed in accordance
with the final order or judgment of the court.
Copies of this chapter shall be provided to
the Chief Financial Officer, Tax Collector, and Borough Clerk for
their information and attention.
Upon the adoption of this chapter, a certified
copy shall be filed by the Clerk of the Borough with the State Commissioner
of Insurance, pursuant to Section 2 of P.L. 1978, Chapter 184.