As used in this chapter, any inconsistent provision of law notwithstanding,
the following terms shall have the following meanings:
LIEN
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.
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.
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.