[Amended 11-19-1990 by Ord. No. 14-1990]
Pursuant to the provisions of N.J.S.A. 17:36-8 et seq., no insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claims for fire damages in excess of $2,500 on any real property located within the Township of Byram pursuant to a fire insurance policy issued or renewed after the adoption of this chapter and filing of the same with the State Commissioner of Insurance, unless or 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, either by the assessed owner or insuror, and that demolition is not required or that the costs of demolition have been paid or the Township submits a certified copy of a resolution adopted pursuant to §
131-3 of this chapter. If the demolition has not yet occurred on the date of receipt by a Township of a request for execution of the certificate required by this section, the insured shall provide on that certificate an estimate of the anticipated costs of demolition. The insurer, on notice to the insured, shall pay the anticipated cost of demolition to the Township, which shall hold the funds in an interest-bearing account in a state- or federally chartered bank, savings bank or savings and loan association in this state. Any request pursuant to this section for an official certificate of search for municipal liens shall specify that the search concerns fire-damaged property.
[Amended 11-19-1990 by Ord. No. 14-1990]
A. Unless a resolution is received in accordance with §
131-3 of this chapter by an insurance company writing fire insurance policies, such insurance company is hereby authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the amount of the anticipated demolition costs to the Township in the manner provided by §
131-1 of this chapter and to pay to the Township the amount of the liens appearing on the official certificate and such other recorded liens or related charges as may be certified to the insurance company.
B. If 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 state- or federally chartered
bank, savings bank or savings and loan association in the state, in
an amount totaling 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
Township 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 Township not to exceed the proceeds payable under its insurance
policy pending the termination of all proceedings, at which time such
moneys and all interest accruing thereon at a rate paid on interest-bearing
accounts in state- or federally chartered banks, savings banks or
savings and loan associations in the state shall be disbursed in accordance
with the final order or judgment of the court.
Notwithstanding the provisions of §
131-1 of this chapter, an insurance company may pay proceeds of a fire insurance policy to a mortgagee of fire-damaged real property, where the fire insurance policy at the time of the loss listed the mortgagee as a named insured, provided that said payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract.