[Ord. #15-1994, § 1]
This chapter shall be known by its short form title as the "Spring
Lake Heights Fire Insurance Ordinance."
[Ord. #15-1994, § 1]
The purpose of this chapter is to ensure the payment of taxes,
assessments or other municipal liens due and payable on real property
in the Borough of Spring Lake Heights when said property is covered
by fire insurance in excess of $2,500 and is damaged or destroyed
by fire.
This chapter shall apply only to fire insurance policies issued
or renewed after the adoption of this chapter and after the filing
of this chapter with the New Jersey State Commissioner of Insurances.
[Ord. #15-1994, § 1]
The payment to a claimant by any fire insurance company authorized
to issue fire insurance in this State of any claim in excess of $2,500
for fire damages on any real property within the Borough of Spring
Lake Heights is hereby prohibited until:
a.
Such time as all taxes and assessments or charges due and payable appearing on an official certificate of search for Borough liens pursuant to N.J.S.A. 54:5-12 dated subsequent to the fire shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of Section 20-7 of this chapter; or
[Ord. #15-1994, § 1]
The official certificate of search 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 Borough
liens or related charges due and payable subsequent to the preparation
of the official certificate.
[Ord. #15-1994, § 1]
If it is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property, the governing body of the Borough may submit to the insurance company a certified copy of a resolution by which it has entered into an agreement with the owner of any firedamaged property to accept payment in full of all delinquent taxes, assessments or other municipal liens or charges 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 Revised Statutes.
[Ord. #15-1994, § 1]
Unless a resolution is received in accordance with Section 20-6 of this chapter by an insurance company writing fire policies in the Borough of Spring Lake Heights, such insurance company is hereby authorized and required prior to payment of any claims for fire damages in excess of $2,500 to pay to the Borough of Spring Lake Heights the amount of the liens appearing in the official certificate, or in any alteration thereof pursuant to Section 20-5 of this chapter and such other recorded liens or related charges as may be certified to the insurance company; provided, however, that if an appeal is taken on the amount of the 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 moneys and all interest accruing thereon at a rate paid on interest-bearing accounts in banking institutions or savings and loan associations in the State shall be disbursed in accordance with the final order or judgement of the Court.
[Ord. #15-1994, § 1]
Except as provided in the case of appeals under Section 20-7 of this chapter, nothing in this chapter shall be construed to obligate the insurance company for any liens not appearing on the official certificate or in any certified changes therein submitted to the insurance company by the bonded official.
[Ord. #15-1994, § 1]
The Borough's claim made in accordance with the provisions of
this chapter shall be paramount to any other claims on the proceeds
of the fire insurance policy, except the claim of a holder of a mortgage
on the fire-damaged property, where the fire insurance policy at the
time of the loss listed the mortgages as a named insured, in which
event the claim of the mortgagee to the process shall be paramount
to the municipal lien only to the extent of the amount due and payable
to the mortgagee under the mortgage contract.
[Ord. #15-1994, § 1]
Upon its adoption, this chapter and any subsequent amendment
thereof shall be filed with the New Jersey State Commissioner of Insurance
as required by law.
