[HISTORY: Adopted by the Mayor and Council
of the Borough of Sea Bright as indicated in article histories. Amendments
noted where applicable.]
[Adopted 3-19-1979 (Ch. 10, Art. 11, of the Codified
Ordinances)]
This article shall be known by its short form
title as the "Sea Bright Fire Insurance Ordinance."
The purpose of this article is to ensure the
payment of taxes, assessments or other municipal liens due and payable
on real property in the Borough of Sea Bright 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.
A.
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 Borough of Sea Bright is hereby prohibited until:
(1)
Such time as all taxes and assessments or charges due and payable appearing on an official certificate of search for Borough 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 Subsection E of this section.
B.
In addition, prior to payment, the insured is required
to submit an official certificate executed by the Borough of Sea Bright
that demolition is not required or the costs of demolition have been
paid. If the demolition has not yet occurred on the date of receipt
by the Borough 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 then pay the anticipated costs of demolition
to the Borough which shall hold the funds in an interest-bearing escrow
account until the demolition occurs or the actual costs of demolition
are determined and paid.
[Added at time of adoption of Code (see Ch. 1, General Provisions,
Art. II)]
C.
The official certificate of search may from time to time be altered
by the bonded official responsible for preparing such certificates
in order to correct any errors or omissions or to add any Borough
liens or related charges due and payable, subsequent to the preparation
of the official certificate.
D.
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 Borough 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 payment in full
of all delinquent taxes, 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 N.J.S.A. 54:5-65
et seq.
E.
Unless a resolution is received in accordance with Subsection D of this section by an insurance company writing fire policies in the Borough of Sea Bright, 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 Borough of Sea Bright the amount of the liens appearing in the official certificate or in any alteration thereof, pursuant to Subsection D of this section, 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.
F.
Except as provided in the case of appeals under Subsection E of this section, nothing in this section 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 Borough'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 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 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.
Upon its adoption, this article and any subsequent
amendment thereof shall be filed with the New Jersey State Commissioner
of Insurance as required by law.
