[HISTORY: Adopted by the Board of Trustees of the Village of Spring Valley 12-20-1977 as L.L. No. 8-1977 (Ch. 19 of the 1970 Code, included as Ch. 10 1/2). Amendments noted where applicable.]
As used in this chapter, any inconsistent provision of law notwithstanding, the following terms shall have the following meanings:
- Any lien including liens for taxes, special ad valorem levies, special assessments and municipal charges arising by operation of law against property in favor of the village and remaining undischarged for a period of one (1) year or more.
- REAL PROPERTY
- Property upon which there is erected any residence or commercial or industrial building or structure, except a one- or two-family residence structure.
- SPECIAL LIEN
- A lien upon fire insurance proceeds pursuant to this chapter and Chapter 738 of the Laws of 1977.
Editor's Note: See General Municipal Law § 22 and Insurance Law §§ 331 and 3410.
Pursuant to the provisions of § 22 of the General Municipal Law and subsequent to the adoption of a resolution by the Village Board providing therefor, the Village Treasurer shall file a notice of intention to claim against the proceeds of fire insurance policies with the State Superintendent of Insurance. Said notice shall be entered in the index of liens maintained by the State Superintendent of Insurance as provided in § 331 of the Insurance Law. Said notice shall constitute constructive notice to each insurer of real property of the village's claim against any proceeds payable under the provisions of any fire insurance policy.
Prior to the payment of any proceeds of a policy of insurance for damages caused by fire to real property situated within the Village of Spring Valley, each insurer shall notify the Village Treasurer that a loss has been sustained and demand that the Treasurer's certificate indicating the amount of all liens of the village against said property, including interest and penalties to the date of the certificate, be served, at a specified address, in person or by registered or certified mail, upon the insurer, within twenty (20) days from the date of mailing such demand. Within ten (10) days of receipt of such certificate of lien and a final determination of the insurer's obligation to pay such proceeds, the insurer shall pay therefrom the amounts specified in the certificate to the Village Treasurer. Notice of the filing of the certificate shall be given to the insured by the Village Treasurer by certified mail.
The claim filed by the Village Treasurer shall constitute a special lien against the proceeds of a fire insurance policy on real property and shall be prior to all other liens and claims against said proceeds except the claim of a mortgagee of record named in the fire insurance policy.
The provisions of this chapter shall not be deemed or construed to alter or impair the right of the village 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.
All or part of the proceeds of a policy of fire insurance paid or to be paid to the village, as set forth hereinabove, may be paid or released to the insured by the village if the insured satisfies the Board of Trustees that repairs or restoration of the affected premises are in the public interest and have been or will be made by the insured. To secure such payment or release of proceeds, the insured must notify the Board of Trustees that he intends to restore or repair the affected premises to the same or improved condition it was in prior to the time the lien against the property arose. Such notification must be filed with the Board of Trustees within forty-five (45) days of the mailing by the village to the insured of the notice of the filing of the special lien.
The release or return of the fire insurance proceeds by the village to the insured shall be subject to the following conditions:
The insured shall file an affidavit with the Board of Trustees, with such supporting documentation as the Board of Trustees shall require, containing a complete description of the nature and extent of the damage to the insured premises and of the condition of the premises prior to the lien held by the village against the property; a complete description of the nature of the repairs or restoration to be undertaken and the cost thereof; a statement as to the source of funds needed to complete such repairs or restoration if the insurance proceeds are not sufficient therefor; the name and address of each contractor who will effect such repair or restoration; an estimated time schedule showing how long the repairs or restoration will take; and such other information as may be required by the Board of Trustees to enable it to determine whether the repairs or restoration are in the public interest and will be or have been timely and properly made.
Upon preliminary approval by the Board of Trustees of the application, as set forth in Subsection B(1) of this section, the Board shall notify the applicant, in writing, evidencing the right of release to the insured of part or all of the insurance proceeds. The repairs or restoration required by the Board of Trustees shall be completed in compliance with the terms and conditions set forth in said notification prior to the release or return of any part of the insurance proceeds unless the Board of Trustees, upon the written request of the insured and in the discretion of the Board of Trustees, approves a prior release of such proceeds or a portion thereof. The Board of Trustees may not approve such prior release unless the insured certifies and demonstrates that such release is necessary to permit the repairs or restoration to go forward. The Board of Trustees may release said proceeds or any portion thereof directly to the contractor or contractors.
The release or return of the fire insurance proceeds or any part thereof shall be subject to the repair or restoration of the affected premises in accordance with applicable building and zoning codes, to the condition it was in prior to the time the lien of the village against the property arose or to an improved condition.
If the insured fails to notify the Board of Trustees of his intention to repair or restore the affected premises as set forth in Subsection B(1) hereof, or fails to file a completed application, or fails to supply the Board of Trustees with specified documentation as required or fails to obtain the approval of the Board of Trustees to the repairs or restoration within the time set forth, the right of the insured to assert a claim against the insurance proceeds, except to the extent said proceeds exceed the amount of the village's special lien, shall terminate.
Any insurance proceeds received by the village pursuant to this chapter shall be deposited in a special fund and retained therein until such time as the insured's right to claim against the proceeds has terminated. The proceeds shall then be applied to the liens held by the village against the real property affected and may be transferred to the general fund. The lien or liens against the real property affected shall continue in full force and effect, except to the extent that such lien or liens are or have been paid.