[HISTORY: Adopted by the Township Committee of the Township of Colts
Neck: Art. I, 4-9-1997. Amendments noted where applicable.]
[Adopted 4-9-1997]
A.Â
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 in excess of $2,500 on any real property
located within the township chartered Colts Neck, Monmouth County, State of
New Jersey, unless or until:
(1)Â
The insured person submits an official certificate, on
a form prescribed and certified by the township, that all anticipated demolition
costs and all taxes and assessments and all other municipal liens or charges
due and payable against said property have been paid; or
B.Â
All search fees incurred under these provisions shall
be paid by the insured.
C.Â
Any request, pursuant to this article, for an official
certificate of search shall specify that the search concerns fire-damaged
property.
If demolition of a fire-damaged property has not yet occurred as of
the date of receipt by the township of a request for execution of an official
certificate required by this article, 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 costs of demolition. The insurer,
on notice to the insured, shall pay the anticipated costs of demolition to
the township which shall hold the funds in an interest-bearing escrow account
in a state or federally chartered bank, savings bank or savings-and-loan association
in the State of New Jersey.
The provisions of this article shall be applicable to any fire insurance
policy issued or renewed after the effective date hereof and after the filing
of this article with the New Jersey State Commissioner of Insurance.
With respect to fire-damage claims in excess of $2,500 on any real property
located within the township, the insurance company to whom such claim is submitted
is hereby authorized and required, pursuant to N.J.S.A. 17:36-8 et seq., to
pay to the township the amount of all anticipated demolition costs and to
pay, in addition, 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.
If any appeal is taken on the amount of any lien or charge, other than
an appeal on the assessed valuate 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 to the township, not
to exceed the proceeds payable under its insurance policy, pending 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 of New
Jersey, shall be disbursed in accordance with the final order or judgment
of the court.
In the event that an agreement is entered into between the township
and the owner of a fire-damaged property for the payment of the anticipated
demolition costs, taxes and assessments or all other municipal liens or charges
due and payable, by installment payments pursuant to N.J.S.A. 54:5-19 et seq.,
the involved insurance company, on receipt from the township of a certified
copy of a resolution of agreement to said effect, may make full payment on
the claim to its insured. No such agreement for the payment of municipal charges,
including anticipated costs of demolition, shall be made, however, unless
the Township Committee is satisfied that the proceeds from the claim for the
fire damages are to be used to restore or to improve the fire-damaged property
on an immediate basis.
Nothing herein shall be construed to alter or affect any other remedy
available to the township under any other applicable law.
