[HISTORY: Adopted by the Borough Council of the Borough of Stone
Harbor as Ch. 18 of the 1982 Revised General Ordinances. Amendments noted
where applicable.]
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claim in excess of $2,500 on any real property located within the Borough of Stone Harbor pursuant to a fire insurance policy issued or renewed after adoption of this chapter, and filing the same with the State Commissioner of Insurance, until such time as all taxes, assessments, and 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 the insurance company pursuant to N.J.S.A. 17:36-8 et seq. unless a municipality shall submit to the insurance company a copy of the resolution adopted pursuant to § 289-2 of this chapter.
The Borough of Stone Harbor 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 and charges by installments pursuant to N.J.S.A.
54:5-19 or for the redemption of the tax sale lien by installments pursuant
to Article VII of Chapter 5 of Title 54 of the Revised Statutes if the Borough
Council of the Borough of Stone Harbor 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 the municipality is authorized to make full payment
on the claim to the insured person.
Unless a resolution as provided above is received by an insurance company
writing fire insurance policies within the Borough of Stone Harbor, said insurance
company is hereby required, prior to the payment of any claims for fire damages
in excess of $2,500, to pay to the municipality the amount of any liens appearing
on the official certificate and such reported 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 issue a draft payable to the Court of record to be held by the
Court in an interest-bearing escrow account in a state or federally chartered
bank, savings bank or savings and loan association in this state, in an amount
totaling 75% of the full amount of the lien or charge being contested, but
not to exceed the proceeds payable under the insurance policy. The insurance
company shall issue a draft to the municipality for the remaining 25% of the
lien or charge being contested, with the full amount paid by the insurance
company to the Court and the municipality, not to exceed the proceeds payable
under the insurance policy, pending termination of all proceedings, at which
time such moneys and all interest accruing thereon, at a rate paid on interest
bearing accounts in state or federally chartered banks, savings banks, or
savings and loan associations of the state, shall be disbursed in accordance
with the final order or judgment of the Court.
This chapter shall take effect upon final adoption, and upon filing
with the State Commissioner of Banking and Insurance, a copy of this chapter
certified to be a true copy by the Borough Clerk.
