Borough of Chester, NJ
Morris County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of Chester by Ord. No. 82-12. Amendments noted where applicable.]
The following terms shall have the following meanings:
State Commissioner of Insurance.
Any lawful lien, including liens for taxes, special assessments, municipal charges, demolition and clearance costs and interest thereon arising by operation of law against real property in favor of the borough.
The Tax Collector, Borough of Chester.
Improved property upon which there is erected any residential, commercial or industrial building or other structure.
A lien upon fire insurance proceeds created pursuant to this chapter and Chapter 184 of the laws of 1979.
No insurance company shall pay to or on behalf of any insured or other claimant any claim in excess of $2,500 for fire damage to or upon any real property located within the Borough of Chester pursuant to any fire insurance policy issued or renewed after the effective date of this section until such time as all taxes and assessments and all other municipal liens or charges due and payable shall have been paid by the owner of such real property or by the insurance company concerned. Except as otherwise herein set forth, the claim of the borough shall constitute a special lien against the proceeds of any such fire insurance policy and shall, as to such proceeds, be prior to all other liens and claims except the claim of any mortgagee of record named in such policy to the extent provided by law.
The provisions of this section shall not be deemed to or construed to alter, impair or affect the right of the Borough of Chester to acquire or enforce any other municipal lien against property as may otherwise be provided by law, but shall be in addition to any other such provision.
Any insurance company issuing fire insurance policies in the Borough of Chester is authorized to require prior to the payment of any such claim for fire damage in excess of $2,500 to any claimant for loss to real property therein, to pay to the municipality the amount of the liens for taxes, assessments or charges appearing on an official certificate of search pursuant to N.J.S.A. 54:5-12 as may be certified to the insurance company and the insured owner of the real property concerned by the public officer, such certificate of search to be without cost, fee or charge and to be provided to both the insurance company and the insured owner of the real property upon the written request of either within not more than five business days after receipt of such request; 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, together with interest accruing thereon at the prevailing lawful rates for savings accounts, shall be disbursed in accordance with the final order or judgment of the court.
Notwithstanding any other provision of this section, the Mayor and Council of the Borough of Chester may at any time 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 Mayor and Council are 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 Mayor and Council of the borough is authorized to make full payment on the claim to the insured person.
The Clerk of the Borough of Chester is hereby authorized and directed to file a certified copy of this section with the State Commissioner of Insurance immediately upon its final adoption in accordance with law, by certified mail with return receipt obtained.
This section shall take effect after final reading and publication in accordance with law and upon filing thereof with the Commissioner, as shown in the certified mail return receipt therefor, which shall be deemed the effective date hereof.