It is the purpose of this chapter to implement the provisions of N.J.S.A.
17:36-8 to 17:36-13 to provide a means whereby municipal liens are a first
claim and paramount to all other claims on fire insurance proceeds payable
with respect to fire-damaged real property located in the Borough of Hopatcong.
The Borough of Hopatcong does hereby prohibit the payment to a claimant,
by any insurance company, of any claim in excess of $2,500 for fire damage
on any real property located within this Borough pursuant to any fire insurance
policy issued or renewed after the adoption of this chapter, except as provided
for hereunder.
The municipal claim made in accordance with the provisions of this chapter
shall be paramount to any other 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,
but only to the extent of the amount due and payable to the mortgagee under
the mortgage obligation.
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. Except as provided in the case of appeals under §
116-3 of this chapter, to obligate the insurance company for any liens not appearing on the official certificate of any certified changes submitted by the bonded official; or
C. To affect the authority of a borough to enforce a municipal
lien under any other law of this state.
Any person who violates this chapter or fails to comply with any provision
thereof shall, upon conviction thereof, be subject to a fine of not more than
$1,000, imprisonment for not more than 90 days or a period of community service
not to exceed 90 days, or any combination thereof.