Editor's Note: Ord. No. 2020-40 amended Chapter T7A in entirety. Prior history includes Ord. No. 992.
[Amended 12-7-2020 by Ord. No. 2020-40]
No insurance company authorized to issue fire insurance policies
in the State of New Jersey shall pay any claim in excess of $2,500
for fire damages to real property located within the municipality,
unless or until such time as: a. (1) anticipated demolition costs
and all taxes and assessments and all other municipal liens or charges
due and payable, appearing on the official certificate of search;
or (2) 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 either by the owner of such real property
or by the insurance company pursuant to the provisions of section
3 of P.L. 1978, c. 184; or b. the municipality submits to the insurance
company a copy of a resolution adopted pursuant to section 4 of P.L.
1978, c. 184.
[Amended 12-7-2020 by Ord. No. 2020-40]
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 omissions or to add any municipal
liens or related charges due and payable subsequent to the preparation
of the official certificate.
[Amended 12-7-2020 by Ord. No. 2020-40]
In the event 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 R.S. 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.
[Amended 12-7-2020 by Ord. No. 2020-40]
Any claim on behalf of the municipality made in accordance with
the provisions of this chapter and P.L. 1978, c. 184 shall be paramount
to any other claims on the proceeds of the fire insurance policy,
except the claim of a holder of a purchase money mortgage held as
a first mortgage or an institutional lender which is 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 the holder of an insurable
interest, in which event the claim of the mortgagee to the proceeds
shall be paramount to the municipal lien only to the extent of the
amount due and payable to the mortgagee under the mortgage contract.
[Amended 12-7-2020 by Ord. No. 2020-40]
All fire insurance policies covering property within the municipality,
issued or renewed after the adoption of this chapter and the filing
of a copy of this chapter with the State Commissioner of Insurance
shall be subject to the provisions of this chapter.
