[Code 1964, § 2-6.1; L.L. No. 1-1979, §§ 1—4]
(a)
Whenever the City has an existing lien for taxes, special ad valorem levies, special assessments or municipal charges arising by operation of law against real property as defined by § 22 of the General Municipal Law and the lien has remained undischarged for a period of one year or more and there is fire damage to the real property for which a claim for proceeds of a fire insurance policy insuring the interests of an owner of the real property may be made, the City Comptroller shall serve a notice of intention to claim against the proceeds of a fire insurance policy upon the state superintendent of insurance for entry in the notice of liens maintained by the State Superintendent of Insurance.
(b)
The City Comptroller may execute any document or perform any act as authorized by the General Municipal Law to perfect the lien of the City against fire insurance proceeds and to collect the fire insurance proceeds on behalf of the City, and the City Comptroller may deposit the proceeds in an account to be determined by the City Comptroller.
(c)
Whenever the City has filed a claim pursuant to § 22 of the General Municipal Law and receives insurance proceeds relative to a specific property, the City Comptroller may release or return to the insured of the property any amounts to which the insured would otherwise be entitled to claim, provided that the insured agrees with the City Treasurer, in writing, to restore the affected premises to the same or an improved condition that it was in prior to the time that the lien of the City arose, subject to the conditions that the resolution authorizing the service of the notice of intention to claim proceeds shall provide to guarantee performance of the obligation, including, but not limited to, an agreement to deposit the proceeds in an escrow account or that the insured shall obtain a performance bond, provided that the insured, no later than 30 days after the City has been paid the insurance proceeds in question, files a written notice of intention to execute the agreement.
(d)
The provisions of this section shall not be deemed or construed to alter or impair the right of the City to acquire or enforce any lien against the property but shall be in addition to any other power provided by law to acquire or enforce the City's right.