[HISTORY: Adopted by the Township Council of the Township of Saddle Brook: Art. I, 4-4-1996 by Ord. No. 1114. Amendments noted where applicable.]
[Adopted 4-4-1996 by Ord. No. 1114]
The purpose of this article is to ensure the payment of taxes, demolition costs, assessments or other municipal liens due and payable on real property in the Township of Saddle Brook when said property is covered by fire insurance in excess of $2,500 and is damaged or destroyed by fire.
This article shall apply only to fire insurance policies issued or renewed after the adoption of this article and after the filing of this article with the New Jersey State Commissioner of Insurance.
The payment to a claimant by any fire insurance company authorized to issue fire insurance policies in this state of any claim in excess of $2,500 for fire damages on any real property located within the Township of Saddle Brook is hereby prohibited until:
Such time as all taxes and assessments or charges due and payable appearing on an official certificate of search for Township liens pursuant to N.J.S.A. 54:5-12 dated subsequent to the fire shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 112-7 of this article; or
The township submits to the insurance company a certified copy of a resolution adopted pursuant to § 112-6 of this article.
Any and all demolition orders pursuant to the Code of the Township of Saddle Brook are complied with. Insurance proceeds in the amount required to complete the demolition only may be released.
The official certificate of search may from time to time be altered by the bonded official responsible for preparing such certificate in order to correct any errors or omissions or to add any township liens or related charges due and payable subsequent to the preparation of the official certificate.
If it is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property, the governing body of the Township of Saddle Brook may submit to the insurance company a certified copy of a resolution by which it has entered into an agreement with the owner of any fire-damaged property to accept payments in full of all delinquent taxes, demolition costs, assessments or other municipal liens or charges by installments pursuant to N.J.S.A. 54:5-19 or for redemption of the tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the Revised Statutes.
Unless a resolution is received in accordance with § 112-5 of this article by an insurance company writing fire policies in the Township of Saddle Brook, such insurance company is hereby authorized and required prior to payment of any claims for fire damages in excess of $2,500 to pay to the Township of Saddle Brook the amount of the liens appearing in the official certificate or in any alteration thereof pursuant to § 112-4 of this article and such other recorded liens or related charges as may be certified to the insurance company; 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.
Except as provided in the case of appeals under § 112-6 of this article, nothing in this article 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 Construction Code Official and or Municipal Treasurer.
The township's claim made in accordance with the provisions of this article shall be paramount to any other claims on the proceeds of the fire insurance policy except the claim of a holder or a mortgage on the fire-damaged property where the fire insurance policy at the time of the loss listed the mortgage as a named insured, in which event the claim of the mortgage to the process shall be paramount to the municipal lien only to the extent of the amount due and payable to the mortgagee under the mortgage contract.
Any request for an official certificate of search for municipal liens shall specify that the search concerns fire damaged property.