[HISTORY: Adopted by the Township Committee of the Township of Bordentown as Ch. 3.08, Art. 2, of the 2003 Municipal Code. Amendments noted where applicable.]
As used in this chapter, the following terms shall have the meanings indicated:
DUE AND PAYABLE
Due and payable at the time that the insurer would remit payment to the insured, but for this chapter.
MAJOR CASUALTY
A loss covered by a policy of fire insurance to real property situate within Bordentown Township in which damages in excess of $10,000 are claimed.
[Amended 2-9-2009 by Ord. No. 2009-05]
Prohibition. No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Township of Bordentown, pursuant to any fire insurance policy issued or renewed after the adoption of this chapter and the filing of this chapter with the State Commissioner of Insurance, until such time as 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 pursuant to N.J.S.A. 17:36-10 or the Township submits to the insurance company a copy of a resolution adopted pursuant to N.J.S.A. 17:36-11.
A. 
Clearance documents. An insurance company may make payment to a major casualty claimant upon receipt of both of the following two documents:
(1) 
An official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying that all taxes, assessments and other municipal liens or charges, levied and assessed and due and payable against the property subject to the major casualty have been paid; and
(2) 
An official certificate certifying either that demolition is not required or, if required, that the cost of demolition has been paid.
B. 
Agreement for payment by installments. The Township may enter into an agreement, when authorized by a duly adopted resolution of the Township Committee, 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 a tax sale lien by installment payments pursuant to N.J.S.A. 54:5-65 et seq., if the Township Committee is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property.
[Amended 2-9-2009 by Ord. No. 2009-05]
A. 
Any person requesting an official certificate of search for municipal liens pursuant to this chapter shall specify that the search concerns fire damaged property.
B. 
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 municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
In the event that, at such time as an insurance company shall determine that fire insurance proceeds are payable as a result of a major casualty, a claimant has failed to satisfy either the conditions set forth in § 269-4A or those set forth in § 269-4B, the insurance company is authorized and required to remit payment to Bordentown Township, prior to payment of any claims arising out of such major casualty, of the amount of the liens appearing on the official certificate, together with the amount of anticipated demolition costs, if any, together with the amount of such other recorded liens or related charges as may be certified to the insurance company. Upon receipt of payment for anticipated demolition costs, if any, the appropriate Bordentown Township official shall hold such funds in an interest bearing escrow account in a state or federally chartered bank, savings bank or savings and loan association in New Jersey until such time as the demolition work shall have been performed and payment for the work is due.
If litigation is filed to contest the amount of any lien or charge, the insurance company shall issue a draft payable to the court of record in the amount of 75% of the full amount of the lien(s) or charges(s) being contested, but not to exceed the proceeds payable under its insurance policy, and shall issue a draft payable to Bordentown Township for the remaining 25% of the lien(s) or charges(s) being contested, with the full amount paid by the insurance company to the court and to Bordentown Township not to exceed the proceeds payable under its insurance policy, pending termination of all proceedings. Disbursement of the foregoing payments and all interest accrued thereon shall be in accordance with the court's final order or judgment. This section shall not apply to litigation concerning assessed valuation pursuant to N.J.S.A. 54:3-21.
A claim made by Bordentown Township in accordance with this chapter and the authorizing legislation shall have priority as set forth in N.J.S.A. 17:36-12.