[HISTORY: Adopted by the Mayor and Council of the Borough of South River 2-14-1979 by Ord. No. 1979-7 (Ch. 118, Art. I, of the 1977 Code). Amendments noted where applicable.]
The Borough of South River hereby prohibits the payment to a claimant by any insurance company of any claim in excess of $2,500 for fire damages on any real property located within the Borough of South River pursuant to any fire insurance policy issued or renewed after the adoption of this chapter and after the filing of such chapter 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 the official certificate of search shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 165-2 of this chapter, or until the municipality submits to the insurance company a copy of a resolution adopted pursuant to § 165-3 of this chapter. No change in this chapter shall take effect until filed with the Commissioner.
The State Commissioner of Insurance shall, within 15 days of the receipt of a copy of any ordinance adopted pursuant to this section, notify each carrier of fire insurance within the state of the adoption of said ordinance.
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 municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
Unless a resolution is received in accordance with § 165-3 of this chapter by an insurance company writing fire insurance policies in the Borough of South River, 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 to the Borough of South River 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 the state shall be disbursed in accordance with the final order or judgment of the court.
The governing body of the Borough of South River, in which the fire-damaged property is located, may enter into 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 Article 7 of Chapter 5 of Title 54 of the New Jersey Revised Statutes if the governing body of the Borough of South River 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 governing body of the municipality is authorized to make full payment on the claim to the insured person.
A municipal claim made in accordance with the provisions of this chapter 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 mortgage as a named insured, in which event the claim of the mortgage to the proceeds shall be paramount to the municipal lien under this chapter only to the extent of the amount due and payable to the mortgagee under the mortgage contract.
Nothing in this chapter shall be construed:
To obligate an insurance company for any amount in excess of the value of the fire insurance policy on the property or the amount of the liability of the insurance company thereunder;
Except as provided in the case of appeals under § 165-2 of this chapter, to obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by a bonded official; or
To affect the authority of a municipality to enforce a municipal lien under any other law of this state.
In addition to the standard provisions for fire insurance policies set forth in P.L. 1953, c. 268, Section 6 (N.J.S.A. 17:36-5.20), every fire insurance policy issued on property situated in the Borough of South River shall be subject to the provisions of this chapter.