A claim of the City upon the proceeds of a fire insurance policy
made by the City, pursuant to N.J.S.A. 17:36-8 et seq. and of this
chapter, shall be paramount to any other claims on said proceeds,
except that the claim of the holder of a mortgage on the fire-damaged
property where the policy lists the mortgagee as a named insured.
The claim of such mortgagee shall be paramount to the City's
lien only to the extent of the amount due and owing on the mortgage.
All fire insurance policies covering real property in this City
shall be subject to the provisions of the chapter as though fully
set forth in each such policy of fire insurance.