[HISTORY: Adopted by the Township Committee of the Township of Little Egg Harbor; see Ch. 1, General Provisions, Art. I. Amendments noted where applicable.]
No insurance company authorized to issue fire insurance policies in the State of New Jersey which issues or renews any fire insurance policy after the adoption of this article and the filing of same with the State Commissioner of Insurance shall pay to any claimant a sum in excess of $2,500 for fire damage on any real property located within the Township of Little Egg Harbor until such time as:
All taxes and assessments and all other municipal liens and charges due and payable to the Township of Little Egg Harbor, as indicated on an 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
The municipality submits to the insurance company a certified copy of a resolution adopted pursuant to N.J.S.A. 17:36-11.
However, 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 to the court and the municipality shall not exceed the proceeds payable under its insurance policy. Pending termination of all proceedings, at which time all moneys and interest accrued shall be disbursed in accordance with the final action or judgment of the court, the 75% of the full amount of a lien or charge shall be placed in an interest-bearing escrow account as provided in N.J.S.A. 17:36-10.
The governing body of Little Egg Harbor Township 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, or for the payment in full of any anticipated costs of demolition by installment, if the governing body of Little Egg Harbor Township 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 from the governing body of Little Egg Harbor Township is authorized to make full payment on the claim to the insured person.
A municipal claim 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 the holder of a purchase money mortgage held as a first mortgage, or an institutional lender that is the holder of a mortgage on the fire-damaged property in which the mortgagee is listed as the holder of an insurable interest on the fire insurance policy at the time of the loss, in which event the claim of the mortgagee to the proceeds shall be paramount to the municipal lien under this act 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 state or federally chartered bank, savings bank, savings and loan association, or insurance company. Nothing in this section shall affect the authority of the municipality to enforce a municipal lien under any other law of this state.
The provisions of this article are intended to be interpreted in conjunction with N.J.S.A. 17:36-8 through N.J.S.A. 17:36-13, and the provisions of said statutes and any amendments thereto are herein incorporated by reference.