If the demolition has not yet occurred on the date of receipt
by the City of a request for execution of the certificate required
herein, the insured shall provide on that certificate an estimate
of the anticipated costs of demolition. The insurer, on notice to
the insured, shall pay the anticipated cost of demolition to the City,
which shall hold the funds in an interest-bearing account in a state
or federally chartered bank, savings bank or savings and loan association
in this state.
Unless a resolution is received in accordance with §
154-5 by an insurance company writing insurance policies in the City, such insurance company is authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the amount of any anticipated demolition costs to the City in the manner set forth in §
154-2 and to pay to the City the amount of the liens appearing on the official certificate of search and such other recorded liens or related charges as may be certified to the insurance company.
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 a 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 by but
not to exceed the proceeds payable under its insurance policy, and
the insurance company shall issue a draft payable to the City 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. Upon
the termination of all proceedings, such money, and all interest accruing
thereon, shall be disbursed in accordance with the final order or
judgment of the court.
The Common Council may enter into agreement with the owner of
any fire-damaged property to pay in full all delinquent taxes, assessed
costs or other municipal liens by installments, pursuant to N.J.S.A.
54:5-19, for the redemption of the tax sale lien by installment payments
pursuant to N.J.S.A. 54:5-65 et seq.; or for the payment in full of
any anticipated costs of demolition by installment, if the Common
Council is satisfied that the claim for damages is to be used to restore
or improve the fire-damaged property. An insurance company receiving
a certified copy of a resolution of agreement from the Common Council
is authorized to make full payment on the claim to the insured person.
The City's claim is subject to the priority of claims mandated
by N.J.S.A. 17:36-12.
Upon adoption of this chapter, the Municipal Clerk shall cause
the ordinance to be filed with the State Commissioner of Insurance,
who shall cause notice to be published in the New Jersey Register.