Every insurance company issuing fire insurance policies in the Borough of Woodstown is prohibited from paying a claimant any claim in excess of $2,500 for fire damages on any real property located within the Borough of Woodstown pursuant to any fire insurance policy issued or renewed after the adoption of this section until such times as anticipated demolition costs and taxes and assessments and all other municipal liens or charges due and payable appearing on the final certificate of search shall have been paid, either by the owner of such real property or by the insurance company, pursuant to §
56-2 herein or pursuant to a resolution of the governing body adopted pursuant to §
56-4 herein.
If any 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 withhold 75% of the
full amount of the lien or charge being contested pending termination
of all proceedings, at which time such monies and all interest accruing
thereon, at a rate paid on interest-bearing accounts in an interest-bearing
escrow account in a state or federally chartered bank or a savings
and loan association in the state, shall be disbursed in accordance
with the final order of judgment of the court.
The Council may, at its discretion, authorize the Tax Collector,
by resolution, to enter into agreements with the owners 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 redemption of the tax sale lien by installment payments, pursuant
to Article 7 of Chapter 5 of Title 54 of the New Jersey Statutes Annotated,
or for payment in full of any anticipated costs of demolition by installment
if the Council 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 any such resolution adopted
by the Borough Council is authorized to make full payment on the claim
to the insured.