[HISTORY: Adopted by the Mayor and Council of the Borough of Fanwood as indicated in article histories. Amendments noted where applicable.]
[Adopted 4-11-1979 by Ord. No. 696R]
[Amended 12-28-1999 by Ord. No. 99-25R]
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay 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, unless and until such time as:
A. 
The insured person submits an official certificate of search pursuant to N.J.S.A. 54:5-12 certifying that either all taxes and assessments and all other municipal liens or charges due and payable appearing on the official certificate have been paid either by the owner of such real property or by the insurance company or that a demolition is not required; or
B. 
If the demolition has not yet occurred on the date of receipt by the Borough of a request for execution of the certificate, the insured shall provide on that certificate an estimate of the anticipate demolition. The insurance company on notice to the insured shall pay the anticipated cost of demolition to the Borough, which shall hold the funds in an interest-bearing escrow account in a state or federally chartered bank, savings bank, or savings and loan association in this state.
C. 
The Borough submits to the insurance company a copy of a resolution adopted pursuant to § 177-2 of this article; 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.
A. 
The Mayor and Council may, by resolution, enter into an agreement with the owner of any fire-damaged property situated in the Borough 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 a tax sale lien by installment payments pursuant to Title 54 of the Revised Statutes of New Jersey, if the Mayor and Council are satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property.
[Amended 12-28-1999 by Ord. No. 99-25R]
B. 
In the event of such a resolution, a certified copy of said resolution shall be sent to the insurance company authorizing the insurance company to make full payment on the claim to the insured.
[Amended 12-28-1999 by Ord. No. 99-25R]
A. 
Notwithstanding the provisions of § 177-1 of this article, an insurance company may pay proceeds of a fire insurance policy to a mortgagee of fire-damaged real property where the fire insurance policy at the time of the loss listed the mortgagee as a named insured; provided that said payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract.
B. 
A claim on behalf of the Borough shall be paramount to any other claim on the fire insurance policy, except the claim of the holder of a purchase money mortgage held as a first mortgage or an institutional lender which is 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 the holder of an insurable interest, in which event the claim of the mortgagee to the proceeds shall be paramount to the Borough's lien only to the extent of the amount due and payable to the mortgagee under the mortgage contract. An insurance company, however, cannot be obligated for any amount in excess of the proceeds payable under the fire insurance policy or for any amount not appearing on an official certificate or any changes submitted by the bonded official.