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.
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.