[HISTORY: Adopted by the Mayor and Board of Aldermen of the Town of Boonton as indicated in article histories. Amendments noted where applicable.]
[Adopted by Ord. No. 17-96]
Pursuant to N.J.S.A. 17:36-8 et seq., a municipality is permitted to adopt an ordinance to preclude fire insurance companies from paying insurance proceeds to the insured until all delinquent taxes, assessment and municipal liens are paid.
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay to an insured any claim in excess of $2,500 for fire damages on any real property located within the Town of Boonton, pursuant to any fire insurance policy issued or renewed after the adoption of this article and the filing of this article with the State Commissioner of Insurance, until such time as:
All taxes and assessments and all other municipal liens or charges due and payable appearing on an official "certificate of search for municipal liens" pursuant to N.J.S.A. 54:5-12 shall have been paid either by the owner of such real property or by the insurance company; or
The town submits to the insurance company a copy of a resolution adopted, provided that 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 withhold 75% percent of the full amount of the lien or charge being contested pending termination of all proceedings.
The Board of Aldermen of the Town of Boonton may, by resolution, enter into an agreement with the owner of any fire damaged property situated in the town 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, if the Board of Aldermen is satisfied the claim for fire damages is to be used to restore or improve the fire damaged property.
In the event of such resolution, a certified copy of the resolution shall be sent to the insurance company authorizing the insurance company to make full payment on the claim to the insured.
Notwithstanding the provisions of this article, 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 the payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract.