[HISTORY: Adopted by the Mayor and Council of the Borough
of High Bridge 2-9-2006 as Ch. 97, Art. I, of the 2006 Code of the Borough of High
Bridge. Amendments noted where applicable.]
In accordance with the provisions of and subject to the limitations of N.J.S.A. 17:36-8 through and including N.J.S.A. 17:36-12, no insurer issuing fire insurance policies in this state shall pay any claims for fire damages in excess of $2,500 on any real property located within the Borough of High Bridge unless or until the insured person submits an official certificate of search for the municipal liens pursuant to N.J.S.A. 54:5-12 certifying that all taxes and assessments, municipal liens, charges levied and assessed, due and payable against the said property and anticipated demolition costs have been paid in accordance with the provisions of the above statutes or the Borough submits a certified copy of a resolution adopted pursuant to § 172-2 of this chapter.
The Borough of High Bridge may enter into an agreement with
the owner of any fire-damaged property to pay in full all delinquent
taxes, assessments or other municipal liens by installment pursuant
to N.J.S.A. 54:5-19 or for the redemption of the tax sale lien by
installment payments pursuant to Article 7 of Chapter 5 of Title 54
of the New Jersey Statues Annotated, if the governing body of the
municipality is satisfied that the claim for fire damages is to be
used to restore or improve the fire-damaged property. An insurance
company receiving a certified copy of a resolution or agreement from
the governing body of the Borough of High Bridge is authorized to
make full payment on the claim to the insured person.
Unless a resolution is received in accordance with § 172-2 of this chapter by an insurance company writing fire insurance policies in the municipality, the company is hereby authorized and required, prior to paying any claims for fire damages in excess of $2,500, to pay to the Borough of High Bridge the amount of the liens appearing on the official certificate 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 be entitled to withhold
the full amount of the lien or charge being contested pending termination
of all proceedings, at which time such moneys and all interest accruing
thereon at a rate paid on interest-bearing accounts in banking institutions
or savings and loan associations in this state shall be disbursed
in accordance with the final order of judgment of the court.
A claim made by the Borough of High Bridge in accordance with
the provisions of this chapter shall be paramount to any other claims
on the proceeds of the fire insurance policy, except the claim of
a holder of a mortgage on the fire-damaged property, where the fire
insurance policy, at the time of the loss, listed the mortgagee as
a named insured, in which event the claim of the mortgagee to the
proceeds shall be paramount to the municipal lien under this chapter
only to the extent of the amount due and payable to the mortgagee
under the mortgage contract.
Nothing in this chapter shall be construed:
A.
To obligate an insurance company for any amount in excess of the
value of the fire insurance policy on the property or the amount of
the liability of the insurance company thereunder.
B.
Except as provided in the case of appeals under § 172-4 of this chapter, to obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by the appropriate municipal official.
C.
To effect the authority of the Borough of High Bridge to enforce
a municipal lien under any other law of this state.
Any person and/or insurance company who fails to comply with the terms of this chapter shall be guilty of a disorderly persons offense and shall be punishable as provided in Chapter 1, Article II, General Penalty. Each claim and/or each payment made not in conformity with the provisions of this chapter shall be deemed a separate offense.
