[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]
A.
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:
(1)
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
(2)
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
B.
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.
A.
Any request
for an official certificate of search for municipal liens shall specify
that the search concerns fire-damaged property.
B.
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.
A.
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.
B.
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.
A.
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.
B.
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.
