[HISTORY: Adopted by the Mayor and Council of the Borough of Leonia 2-7-1997
as Ord. No. 1225; amended in its entirety 6-16-1997
by Ord. No. 7-97(Ch. 28 of the 1982 Code). Subsequent amendments
noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 136.
As used in this chapter, the following terms shall have the meanings
indicated:
N.J.S.A. 17:36-8 et seq.
The Borough of Leonia in the County of Bergen and State of New Jersey.
The Mayor and Council of the Borough of Leonia.
All parties having an interest in the real estate affected by fire
damage and all parties insured under the terms and provisions of the fire
insurance coverage of the property damaged.
No insurance company authorized to issue fire insurance policies in
the State of New Jersey shall pay any claims in excess of two thousand five
hundred dollars ($2,500) on any real property located within the Borough unless
or until either:
A.
The insured person submits an official certificate of
search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying that all
taxes, assessments or other municipal liens or charges, levied and assessed
and due and payable to the Borough against the property have been paid; or
B.
The Borough submits a certified copy of a resolution
adopted pursuant to N.J.S.A. 17:36-11.
Any insurance company authorized to issue fire insurance policies in
the State of New Jersey on real properties located within the Borough be and
is hereby prohibited from paying to a claimant any claim in excess of $2,500
for fire damages on any real property located within the Borough pursuant
to any fire insurance policy issued or renewed after the final adoption of
this chapter and after the filing of this chapter with the New Jersey State
Commissioner of Insurance, until such time as either:
A.
All taxes and assessments and all other municipal liens
or charges due and payable to the Borough 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 N.J.S.A. 17:36-10;
or
B.
The Borough submits to such insurance company a copy
of a resolution adopted pursuant to N.J.S.A. 17:36-11.
Unless a resolution is received in accordance with N.J.S.A. 17:36-11
by an insurance company writing fire insurance policies on real property within
the Borough, such insurance company be and is hereby authorized and required,
prior to the payment of any claims for fire damages in excess of $2,500 to
pay the Borough 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 monies and all interest accruing thereon
at a rate paid on interest bearing accounts in banking institutions or savings
and loan associations in this state shall be disbursed in accordance with
the final order or judgment of the court.
Where the fire damaged real property is located in the Borough, the
Borough Council may enter into an agreement with the owner of any fire damaged
property whereby the owner agrees 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 Revised Statutes, if the Borough 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 by the Borough Council is authorized to make
full payment on the claim to the insured person.
A Borough claim made in accordance with the provisions of the Act and
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 mortgagee as a named insured, in which event the claim
of the mortgagee 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:
A.
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;
B.
To obligate the insurance company for any liens not appearing
on the official certificate or any certified changes submitted by the bonded
official; or
C.
To affect the authority of the Borough to enforce its
municipal lien under any other law of the State of New Jersey.
The official certificate of search may, from time to time be altered
by the bonded official responsible for preparing such certificate, 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.
This chapter shall be filed with the New Jersey State Commissioner of
Insurance pursuant to the provisions of the Act.
