[HISTORY: Adopted by the Borough Council of the Borough of Haledon 4-9-1979 by Ord. No. 3-14-79A (Ch. 110 of the 1984 Code). Amendments noted where applicable.]
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claims in excess of $2,500 on any real property located within the Borough of Haledon unless or until the insured person submits an official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying that all taxes, assessments and demolition costs or other municipal liens or charges levied and assessed and due and payable to the Borough of Haledon against said property have been paid, or the Borough of Haledon submits a certified copy of a resolution adopted pursuant to § 181-4, of this chapter as permitted by Section 4 of Chapter 184 of the Laws of 1978 of the State of New Jersey (N.J.S.A. 17:36-11).
Any insurance company authorized to issue fire insurance policies in the State of New Jersey on real properties located within the Borough of Haledon is prohibited from paying to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Borough of Haledon pursuant to any fire insurance policy issued or renewed after the final adoption of this chapter and after the filing of this chapter with the New Jersey State Commissioner of Insurance until such time as all taxes and assessments, demolition costs and all other municipal liens or charges due and payable to the Borough of Haledon 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 § 181-3 of this chapter and Section 3 of Chapter 184 of the Laws of 1978 of the State of New Jersey (N.J.S.A. 17:36-10), or the Borough of Haledon submits to such insurance company a copy of a resolution adopted pursuant to § 181-4 of this chapter and pursuant to Section 4 of said Chapter 184, Laws of 1978 (N.J.S.A. 17:36-11).
Unless a resolution is received in accordance with § 181-4 of this chapter and in accordance with Section 4 of Chapter 184, Laws of 1978, State of New Jersey (N.J.S.A. 17:36-11) by an insurance company writing fire insurance policies on real property within the Borough of Haledon, such insurance company is hereby authorized and required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the Borough of Haledon the amount of the liens appearing on the official certificate and such other recorded liens or related charges as may be certified to the insurance company; 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, 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 the final order or judgment of the court.
Where the fire-damaged real property is located in the Borough of Haledon, the Municipal Council of the Borough of Haledon may enter into an agreement with the owner of any fire-damaged property 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 the tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the Revised Statutes, if the Municipal Council is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property. An insurance company receiving a certified copy of a resolution of agreement by the Municipal Council is authorized to make full payment on the claim to the insured person.
A municipal claim made in accordance with the provisions of Chapter 184 of the Laws of 1978 (N.J.S.A. 17:36-8 et seq.) and 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 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 only to the extent of the amount due and payable to the mortgagee under the mortgage contract.
Nothing in this chapter shall be construed:
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.
Except as provided in the case of appeals under § 181-3 of this chapter, to obligate the insurance company for any liens not appearing on the official certificate or any certified charges submitted by the bonded official.
To affect the authority of the municipality to enforce its municipal lien under any other law of the State of New Jersey.
The official certificate of search may from time to time be altered by the bonded official responsible for preparing such certificates, in order to correct any errors or omissions or to add any municipal liens or related charges due and payable subsequent to the preparation of the official certificate.
This chapter shall be filed with the New Jersey State Commissioner of Insurance pursuant to the provisions of Chapter 184 of the Laws of 1978 of the State of New Jersey (N.J.S.A. 17:36-8 et seq.).
As used in this chapter, the following terms shall have the meanings indicated:
- INSURED PERSON
- Includes all parties having interest in the real estate affected by fire damage and all parties insured under the terms and provisions of the fire insurance coverage of the property damaged.