[HISTORY: Adopted by the Mayor and Council of the Borough of Edgewater 11-12-1996 by Ord. No. 1082-96 (Ch. 149A of the 1975 Code). Amendments noted where applicable.]
No insurance company shall pay any claim in excess of $2,500 for fire damages on any real property located within the Borough, when such claim is payable in connection with a fire insurance policy issued or renewed after the adoption of this chapter, until such time as anticipated demolition costs and all taxes and assessments and all other municipal liens or charges due and payable appearing on the official certificate of search shall have been paid either by the owner of such real property or by the insurance company pursuant to § 196-3 of this chapter. Notwithstanding the foregoing, the Borough may enter into an agreement with an owner for the payment of delinquent taxes, assessments or municipal liens in installments in accordance with § 196-2 of this chapter.
The Borough 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 installments pursuant to N.J.S.A. 54:5-19, or for the redemption of any tax sale lien by installment payments as provided by law, or for the payment in full of any anticipated costs of demolition by installment, if the governing body is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property. A certified copy of a resolution by the governing body shall authorize an insurance company to make full payment on the claim to the insured party.
Unless a resolution is received in accordance with § 196-2 of this chapter, an insurance company is hereby authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the amount of anticipated demolition costs to the Borough as prescribed by N.J.S.A. 17:38-8 and to pay to the Borough the amount of liens as appears on the official certificate and such other recorded liens or related charges as may be certified to the insurance company.
Should an appeal be taken on the amount of any lien or charge other than an appeal on the assessed valuation of real property, the insurance company shall issue a draft payable to the court of record which shall be held by the court as required by law, the draft shall be in an amount totaling 75% of the full amount of the lien or charge being contested but not to exceed the proceeds payable under the insurance policy. The insurance company shall be required to issue a draft payable to the Borough for the remaining 25% of the lien or charge being contested, provided that the full amount paid by the insurance company to the court and Borough shall not exceed the proceeds payable under the policy. Upon conclusion of all proceedings, the money shall be disbursed in accordance with the final order of the judgment of the court.