Fire prevention — See Ch. 189.
§ 183-1Certificate of search for municipal
§ 183-2Municipal liens to be paid prior
to payment of claims.
§ 183-3Authorization from governing
body to make payment.
§ 183-4Appeals on liens.
§ 183-5Priority of municipal claims.
§ 183-6Construal of provisions.
No insurer issuing fire insurance policies in this state shall pay any claims for fire damages in excess of $2,500 on any real property located within the Township of Montville unless or until the insured person submits an official certificate of search for municipal liens, certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable against said property have been paid. Any request pursuant to this section for an official certificate of search for municipal liens shall specify that the search concerns fire-damaged property.
If said municipal search shall reveal the presence of any taxes, assessments or other municipal liens or charges due and payable, then such amounts shall be paid by either the owner of such real property or by the insurance company prior to the payment of any claims for fire damages in excess of $2,500 on such real property located within the Township. Except as provided herein, an insurance company is hereby authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay to the Township the amount of the liens appearing on the official certificate (tax search) and such other recorded liens or related charges as may be certified to the insurance company.
An insurance company receiving a certified copy of a resolution of consent from the governing body of the Township of Montville is hereby authorized to make full payment of the claim to the insured person.
If an appeal is taken on the amount of any lien or charge, other than an appeal on the assessed violation of real property pursuant to N.J.S.A. 54:3-21, the insurance company shall issue a draft payable to the court of record, to be held by the court in an interest-bearing escrow account in a banking institution or savings and loan association in this state, in an amount totaling 75% of the full amount of the lien or charge being contested, but not to exceed the proceeds payable under its insurance policy, and the insurance company shall issue a draft payable to the Township for the remaining 25% of the lien or charge being contested, with the full amount paid by the insurance company to the court and the Township not to exceed the proceeds payable under its insurance policy pending termination of all proceedings, at which time, such moneys 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 final order or judgment of the court.
A municipal claim made in accordance with the provisions of this chapter shall be paramount to any other claims on the proceeds of 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 municipal lien under this chapter only to the extent of the amount due and payable to the mortgagee under the mortgage contract. As used in this section, "institutional lender" means any bank, savings bank, state or federal chartered savings and loan association or insurance company.
Nothing in this chapter shall be construed to affect the authority of the Township to enforce a Township lien under any other law of this state.