It is the purpose of this chapter to implement the provisions of N.J.S.A.
17:36-8 to 17:36-13 to provide a means whereby municipal liens are a first
claim and paramount to all other claims on fire insurance proceeds payable
with respect to fire-damaged real property located in the Township of Mount
Holly.
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claim in excess of the amount set forth in §
25-2B for fire damages on any real property located within the Township of Mount Holly pursuant to any fire insurance policy issued or renewed after the effective date of this chapter until such time as all taxes and assessments and all other municipal liens or charges due and payable appearing on an official certificate of search shall have been paid either by the owner of such real property or by the insurance company or the Township submits to the insurance company a certified copy of a resolution authorizing said payment.
The official certificate of search shall be prepared by the Tax Collector
upon request from the insurance company or the owner of the property and may
be altered from time to time 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.
Within 60 days of receipt of the official certificate of search, should
any liens or related charges appear thereon, the owner of the property or
the insurance company shall pay directly to the Township the amount of liens
appearing on said official certificate and such other recorded liens or related
charges as may be certified to the insurance company.
If an appeal is taken on the amount of lien or charge, other than an
appeal on the assessed evaluation 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. Upon termination of all proceedings, such moneys and
all interest accumulating thereon shall be disbursed in accordance with the
final order or judgment of the court.
The Township Council may, by resolution, authorize an agreement with
the owner of 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 New Jersey Statutes Annotated if the Township
Council is satisfied that the claim for fire damages is to be used to restore
or improve the fire damaged property. Upon receipt of a certified copy of
said resolution, the insurance company shall be authorized to make full payment
to the insured person.
Any person who violates this chapter or fails to comply with any of
its requirements shall, upon conviction thereof, be subject to a fine of not
more than $500 and be subject to 90 days' imprisonment.
The provisions of this chapter shall not affect the authority of the
Township to enforce a municipal lien or other charges under any other law
of the State of New Jersey.