[Adopted 9-22-1983 by Ord. No. 1119
(Sec. 2-31 of the 1971 Code)]
N.J.S.A. 17:36-8 et seq. permits a municipality to adopt an ordinance
providing that no insurance company authorized to issue fire insurance policies
in New Jersey shall pay any claims in excess of $2,500 unless and until the
insured person submits an Official Certificate of Search for Municipal Liens
pursuant to N.J.S.A. 54:5-12 certifying that all taxes, assessments or other
municipal liens or charges levied and assessed and due and payable against
said property have been paid or the municipality submits a certified copy
of a resolution indicating that it has entered into an agreement with the
owner of any fire-damaged property allowing any lien to be paid in installments,
if the governing body is satisfied that the claim for fire damage is to be
used to restore or improve the fire-damaged property, and the City Council
of the City of Long Branch deems it in the best interest of the citizens of
the City of Long Branch to implement such an ordinance.
This chapter shall be known by its short form title as the "Long Branch
Fire Insurance Ordinance."
The purpose of this chapter is to ensure the payment of taxes, assessments
or other municipal liens due and payable on real property in the City of Long
Branch, when said property is covered by fire insurance in excess of $2,500
and is damaged or destroyed by fire.
In the event that there are taxes or assessments or other municipal
liens or charges due and payable appearing on the official certificate of
search referred to above, no payment shall be made to a claimant by any insurance
company of any claim in excess of $2,500 for fire damages on any real property
located within the City of Long Branch pursuant to any fire insurance policy
issued or renewed after the adoption of this chapter and after the filing
of the same with the State Commissioner of Insurance until such time as all
of the aforesaid taxes and assessments and 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
or the municipality submits to the insurance company a copy of a resolution
authorizing payment in installments as set forth hereinafter.
Unless a resolution is received by an insurance company writing fire insurance policies in the City of Long Branch authorizing payment in installments, such insurance company is hereby authorized and required prior to the payment of any claims for fire damage in excess of $2,500 to pay to the City of Long Branch the amount of the liens appearing on the official certificate, or in any alteration thereof pursuant to §
203-4B, and such other recorded liens or related charges as may be certified to the insurance company in accordance with N.J.S.A. 17:36-10; provided, however, that if an appeal is taken on the amount of the 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 City Council may enter into an agreement with the owner of any fire-damaged
property within the city to pay in full all delinquent taxes, assessments
or other municipal liens by installments pursuant to N.J.S.A. 54:5-19, provided
that the City Council is satisfied that the claim for fire damages is to be
used to restore or improve the fire-damaged property. Said agreement shall
be authorized by resolution, and any insurance company receiving a certified
copy of such a Resolution of Agreement from the City Council is authorized
to make full payment to the insured person.
Except as provided in the case of appeals under §
203-6, nothing in this chapter shall be construed to obligate the insurance company for any liens not appearing on the official certificate or in any certified changes therein submitted to the insurance company by the bonded official.
The city's 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 only to the extent of
the amount due and payable to the mortgagee under the mortgage contract.
A certified copy of this chapter shall be forwarded by the City Clerk
to the State Commissioner of Insurance, who shall notify each carrier of insurance
within the State of New Jersey of the adoption of this chapter.