[HISTORY: Adopted by the Borough Council of the Borough of Wrightstown
by Ord. No. 1996-4 (Chapter XXI of the Revised General Ordinances). Amendments
noted where applicable.]
This chapter shall be known as the "Borough of Wrightstown Tax Liens
on Fire Damaged Property Ordinance."
Pursuant to N.J.S.A. 17:36-9, the borough may, by ordinance, prohibit
the payment to a claimant by an insurance company on any claim in excess of
$2,500 for fire damages on any real property located within the municipality
prior to payment of municipal liens which may be due.
A.
No insurance company authorized to issue fire insurance
policies in the State of New Jersey shall pay any claim in excess of $2,500
for damages on any real property located within the Borough of Wrightstown
until such time as:
(1)
All taxes and assessments and all other municipal liens
or charges due and payable appearing on the official certificate of search
for municipal liens shall have been paid in full and a municipal certificate
is issued stating that the cost of demolition has been paid; or
(2)
The municipality submits to the insurance company a copy
of a resolution adopted pursuant to N.J.S.A. 17:36-11 (installment payments).
B.
If an appeal is taken on the amount of any lien or charge,
other than an appeal on an assessed valuation of real property, the insurance
company shall issue a draft payable to the court of record, pursuant to N.J.S.A.
17:36-10, in an amount totaling 75% of the full amount of the lien or charge
being contested, and the insurance company shall issue a draft payable to
the municipality for the remaining 25% of the lien or charge being contested;
provided, however, that the amount paid by the insurance company of the court
and the municipality shall not exceed the proceeds payable under its insurance
policy.
C.
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 a holder of a 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 a named insured, in which event the claim
of the mortgagee to the proceeds shall be paramount to the municipal lien
only to the extent of the amount due and payable to the mortgagee under the
mortgage contract.
This chapter is adopted under and in accordance with P.L. 1978, c. 184,
Section 1 et seq. (N.J.S.A. 17:36-8 et seq.), and any amendments and supplements
thereto, and any regulations promulgated pursuant thereto, and anything herein
contained to the contrary shall be controlled by said legislative enactment
and regulations.