[HISTORY: Adopted by the Township Committee
of the Township of Union 4-10-1979 by Ord. No. 3362 (Ch. 281 of the 2004
Code). Amendments noted where applicable.]
It shall be unlawful for any insurance company
authorized to issue fire insurance policies in the State of New Jersey
to pay to any claimant any claim in excess of $2,500 for fire damages
on any real property located within the Township of Union pursuant
to any fire insurance policy issued or renewed after the adoption
of this chapter and after the filing of this chapter with the State
Commissioner of Insurance, until such time as all taxes and assessments
and all other municipal liens or charges due and payable appearing
on the official certificate of search shall have been paid.
The official certificate of search shall be
provided by the Tax Collector of the Township of Union upon proper
application of the claimant and such certificate 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.
All taxes and assessments and other municipal
liens or charges due and payable appearing on the official certificate
of search shall be paid by the owner of the property or any insurance
company prior to the payment of any claims in excess of $2,500 on
the property and such insurance company is hereby authorized and required
to pay to the municipality the amount of the liens appearing on the
official certificate of search and such other recorded liens or related
charges which may be certified to said insurance company; provided,
however, that if an appeal is taken to 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 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 judgment
of the court.
The governing body of the Township of Union may enter into an 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 lien by installment payments, pursuant to Article 7 of Chapter 9 of Title 54 of the Revised Statutes of New Jersey, if the governing body of the municipality 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 a resolution of agreement from the governing body of the municipality 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 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 mortgagee as a
named insured, 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.
This chapter shall not affect the authority
of the Township of Union to enforce a municipal lien under any other
law of this state.
The Township Clerk shall file a certified copy
of this chapter with the State Commissioner of Insurance within 15
days of its enactment.
