[HISTORY: Adopted by the City Council of the City of Auburn 7-2-1998 by L.L. No. 1-1998. Amendments noted where applicable.]
The City of Auburn, like other municipalities, experiences fires which damage or destroy residential, commercial and industrial structures within its city limits, many of which remain standing unrepaired. Oftentimes, insurance proceeds are paid to the owner without the structure being repaired or demolished. In addition, taxes are often due and outstanding on such real property which often are not paid by the owner after a fire. General Municipal Law § 22 provides a procedure by which a municipality may file a lien with the Superintendent of Insurance for any unpaid taxes, special ad valorem levy, special assessment or other charges imposed upon real property.
As used in this chapter, the following terms shall have the meanings indicated:
- ENFORCING OFFICER
- The City Treasurer.
- An unpaid tax, special ad valorem levy, special assessment or other charge imposed upon real property by or on behalf of the City of Auburn, whether or not evidenced by written instrument, and provided that one such tax, levy, assessment or other charge has remained undischarged for a period of one year or more.
- REAL PROPERTY
- Property upon which there is erected any residential, commercial, or industrial building or structure except a one- or two-family residential structure.
Pursuant to General Municipal Law § 22, a claim against fire insurance procedure is hereby established as follows: The City of Auburn is hereby authorized and empowered to claim against the proceeds of a policy of fire insurance insuring the interests of an owner and issued on real property located within the City of Auburn to the extent of any liens thereon, which claim, when made and perfected in a manner provided herein, shall further constitute a lien against such proceeds and which shall, as to such proceeds, be prior to all other liens and claims except the claim of a mortgagee of record named in such policy.
Upon the adoption of a resolution by the City Council of the City of Auburn, the City Treasurer shall cause a notice of intention to claim against proceeds to be served upon the State Superintendent of Insurance for entry into the index of tax districts maintained by him or her as provided in § 331 of the Insurance Law. Thereafter, the City Treasurer shall render to any insured the certificate required and in the manner described by such section, and the amount stated in such certificate shall be a lien on the proceeds of the insurance policy until paid.
The City Treasurer shall release or return to the insured any amounts to which the City of Auburn would otherwise be entitled to claim, provided that the insured agrees with the City of Auburn, in writing, to restore the affected premises to the same or improved condition that it was in prior to the time that the lien of the City of Auburn against proceeds provided for herein arose, subject to such conditions as such resolution shall provide to guarantee performance of such obligation, including but not limited to an agreement to deposit such proceeds in an escrow account or a requirement that the insured obtain a performance bond.
The provisions herein shall not be deemed or construed to alter or impair the right of the City of Auburn to acquire or enforce any lien against real property but shall be in addition to any other power provided by law to acquire or enforce such right.