[Adopted 4-15-1980 by Ord. No. 80-12 as Art. II of Ch. 111 of the 1979 Code]
No insurance company authorized to issue fire insurance policies in the Township of Montclair shall pay to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Township of Montclair until such time as all taxes, assessments and all 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, all in accordance with N.J.S.A. 17:36-8 et seq.
In lieu of the requirements imposed by § 309-4, the Township of Montclair may enter into an agreement with the owner of any fire-damaged property 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 the tax sale lien by installment payments pursuant to N.J.S.A. 54:5-65 to 54:5-76, if the Township Council is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property. An insurance company receiving a certified copy of a resolution of agreement from the Township Council is authorized to make full payment on the claim to the insured person.
Unless a resolution is received in accordance with the provisions of § 309-5, an insurance company writing fire insurance policies in the Township of Montclair shall, prior to the payment of any claims for fire damages in excess of $2,500 pay to the Township of Montclair 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; provided, however, 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% 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 New Jersey shall be disbursed in accordance with the final order or judgment of the court.
The provisions of this article shall apply to fire insurance policies issued or renewed after the effective date of this article.