[HISTORY: Adopted by the Mayor and Council of the Borough
of Washington as indicated in article histories. Amendments noted
where applicable.]
[Adopted 4-24-1979 by Ord. No. 11-79]
On and after the effective date of this article, it shall be
unlawful for any insurance company to make payment to a claimant of
any claim in excess of $2,500 for fire damages on any real property
located within the Borough of Washington, County of Warren, State
of New Jersey, pursuant to any fire insurance policy issued or renewed
after the effective date of this article and the filing of the same
with the State Commissioner of Insurance, until such time as all taxes
and assessments and all other municipal liens or charges due and payable
as of the date of the claim appearing on the official certificate
of search shall have been paid either by the owner of such real property
or by the insurance company pursuant to the provisions of Public Law
1978, Chapter 184, Section 3,[1] or until the Borough of Washington shall have submitted to the insurance company a resolution providing for an agreement with the owner of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal liens by installment pursuant to N.J.S.A. 54:5-19 or for the redemption of a tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the New Jersey Revised Statutes. Said resolution shall only be authorized when the Borough of Washington shall be satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property.
[1]
Editor's Note: See N.J.S.A. 17:36-10.
The claim of the Borough of Washington made in accordance with
the provisions of this article shall be paramount to any other claims
on the proceeds of the fire insurance policy, except the 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 lien of the Borough of Washington under
this article only to the extent of the amount due and payable to the
mortgagee under the mortgage contract.
This article shall in no way affect the authority of the Borough
of Washington to enforce any municipal liens under any other law of
the state.
