[1991 Code § 127-1]
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 Borough unless
or until all taxes, assessments and 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 as provided in N.J.S.A. 17:36-1, or the municipality
submits to the insurance company a copy of a resolution adopted pursuant
to N.J.S.A. 17:36-11.
[1991 Code § 127-2]
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.
[1991 Code § 127-3]
In the event that 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 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 banking institution or
savings and loan association in the State, in an amount totalling
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 banking institutions or savings and loan associations
in the State shall be disbursed in accordance with the final order
of judgment of the court.
[1991 Code § 127-4]
Any claim on behalf of the Borough made in accordance with the
provisions of this article and N.J.S.A. 17:36-8 et seq., 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
only to the extent of the amount due and payable to the mortgagee
under the mortgage contract.
[1991 Code § 127-5]
All fire insurance policies covering property within the Borough
issued or renewed after the adoption of this article and the filing
of a copy of this article with the State Commissioner of Insurance
shall be subject to the provisions of this article.
