[HISTORY: Adopted by the Mayor and Council of the Borough of Penns Grove as indicated in article histories. Amendments noted where applicable.]
[Adopted 6-19-1979 by Ord. No. 79-11 (Ch. 119 of the 1986 Code); amended in its entirety 7-5-2017 by Ord. No. 2017-5]
Pursuant to N.J.S.A. 17:36-8 et seq., no insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Borough of Penns Grove pursuant to any fire insurance policy issued or renewed after the adoption of this article and the filing of this article with the State Commissioner of Insurance until such time as:
All taxes and assessments and all other municipal liens or charges levied and assessed and due and payable appearing on the official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12 shall have been paid either by the owner of such real property or by the insurance company; and
The insured person submits an official certificate, on a form prescribed and certified by the Tax Collector of the Borough, that demolition is not required or that the costs of demolition or anticipated demolition have been paid, and the identity and contact information for the insurer of the property; or
If demolition has not yet occurred on the date of receipt of a request for an official certificate of search pursuant to this section, the insurer shall provide on that certificate an estimate of the anticipated costs of demolition. The insured on notice shall pay the anticipated cost of demolition to the municipality which shall hold the funds in an interest-bearing escrow account in a state or federally chartered bank, savings banks or savings and loan association in this state.
Any request for an official certificate of search for municipal liens shall specify that the search concerns fire-damaged property.
The official certificate of search may, from time to time, be altered by the bonded official responsible for preparing such certificates in order to cancel any error or omission or to add any municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
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, but not to exceed the proceeds payable under its insurance policy, and the insurance company shall issue a draft payable to the municipality 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, pending termination of all proceedings, at which time such moneys and all interest accruing thereon, at a rate paid on interest-bearing accounts in state or federally chartered banks, savings banks or savings and loan associations in the state, shall be disbursed in accordance with the final order or judgment of the court.
The Borough Council of the Borough of Penns Grove may by resolution enter into an agreement with the owner of any fire-damaged property situated in the Borough of Penns Grove 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 a tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the Revised Statutes of New Jersey, or for the payment in full of any anticipated costs of demolition by installment, if the Mayor and Council are satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property.
In the event of such a resolution, a certified copy of said resolution shall be sent to the insurance company authorizing the insurance company to make full payment on the claim to the insured.
Copies of this article shall be provided to the Chief Financial Officer, Tax Collector, and Borough Clerk for their information and attention.
Upon the adoption of this article, a certified copy shall be filed by the Clerk of the Borough with the State Commissioner of Insurance, pursuant to N.J.S.A. 17:36-9.
All other powers conveyed and reserved to the Borough of Penns Grove by N.J.S.A. 17:36-8 through 17:36-13, as now or hereafter amended, not specifically set forth in this article are hereby incorporated by reference and enacted by the Borough of Penns Grove.
Any provisions of this article inconsistent with the provisions of N.J.S.A. 17:36-8 through 17:36-13, as now or hereafter amended, are hereby modified or repealed to the extent of such inconsistencies, but all other parts of this article shall remain in full force and effect.