No insurer issuing fire insurance policies in the State of New Jersey shall pay any claims for fire damages in excess of $2,500 on any real property located within the Borough of Woodlynne, pursuant to a fire insurance policy issued or renewed after the adoption of this chapter and filing of the same with the State Commissioner of Insurance, unless or until the insured person submits an official certificate of search for municipal liens, pursuant to N.J.S.A. 54:5-12, certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable against said property have been paid, either by the assessed owner or insurer, and that demolition is not required or that the costs of demolition have been paid, or the Borough submits a certified copy of a resolution adopted pursuant to § 317-4 of this chapter. If the demolition has not yet occurred on the date of receipt by the Borough of a request for execution of the certificate required by this section, the insured shall provide on that certificate an estimate of the anticipated costs of demolition. The insurer, on notice to the insured, shall pay the anticipated cost of demolition to the Borough, which shall hold the funds in an interest-bearing account in a state- or federally chartered bank, savings bank or savings and loan association in this state. Any request pursuant to this section for an official certificate of search for municipal liens shall specify that the search concerns fire-damaged property.
[HISTORY: Adopted by the Mayor and Council of the Borough of Woodlynne 3-12-1987 by Ord. No. 1987-2 (Ch. 54A of the 1976 Code). Amendments noted where applicable.]
The official certificate of search referred to in § 317-1 of this chapter may from time to time be altered by the bonded official responsible for preparing such certificates in order to correct any errors or omissions or to add any municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
A.
Unless a resolution is received in accordance with § 317-4 of this chapter by an insurance company writing fire insurance policies, such 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 the anticipated demolition costs, if so required by this chapter, to the Borough in the manner provided by § 317-1 of this chapter and to pay to the Borough the amount of the liens appearing on the official certificate and such other recorded liens or related charges as may be certified to the insurance company.
B.
If an appeal is taken on the amount of any lien or charge, other than an appeal on the 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 Borough 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 Borough 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 Woodlynne may enter into 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 the tax sale by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the New Jersey Revised Statutes, or for the payment in full of any anticipated costs of demolition by installment if the Borough Council is satisfied that the claim for fire damages is to be used to restore and improve the fire-damaged property. An insurance company receiving a certified copy of a resolution of agreement from the Borough Council of the Borough of Woodlynne is authorized to make full payment on the claim to the insured person.
A municipal claim made in accordance with the provisions of this chapter shall be paramount to any other claim on the proceeds of a fire insurance policy except the claim of the holder of a purchase money mortgage held as a first mortgage or an institutional lender which is a holder of a mortgage on a fire-damaged property where the fire insurance policy at the time of the loss listed the mortgagee as the holder of an insurable interest, in which event, the claim of the mortgagee to the proceeds shall be paramount to the municipal lien under this chapter only to the extent of the amount due and payable to the mortgagee under the mortgage contract. As used in this section, "institutional lender" means any state- or federally chartered bank, savings bank or state- or federally chartered savings and loan association or insurance company.
Nothing in this chapter shall be construed to:
A.
Obligate an insurance company for any amount in excess of the proceeds payable under its fire insurance policy;
B.
Except as provided in the case of appeals under § 317-3 of this chapter, obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by the bonded official; or
C.
Affect the authority of the Borough of Woodlynne to enforce a municipal lien under any other law of this state.
This chapter shall take effect upon final passage, approval and publication as required by law, provided that the Borough Clerk shall cause a certified copy of this chapter to be filed with the State Commissioner of Banking and Insurance, and this chapter shall not be deemed effective until such time as said filing occurs.