[HISTORY: Adopted by the Mayor and Council
of the Borough of North Haledon 3-18-1998 by Ord. No. 2-1998 (Ch.
8 of the 1990 Code). Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 295.
A.
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay to a claimant any claim in excess of $2,500 for fire damages on any real property located within the Borough of North Haledon pursuant to any fire insurance policy issued or renewed after the adoption of this chapter and the filing of this chapter with the State Commissioner of Insurance until such time as all actual or anticipated demolition costs (or upon receipt of a certificate from the Construction Official that demolition is not required), all taxes and assessments and all other municipal liens or charges due and payable appearing on the official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12 shall have been paid either by the owner of such real property or by the insurance company; or the municipality submits to the insurance company a copy of a resolution adopted pursuant to § 288-1B of this chapter; 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 pay in escrow to the court in accordance with the state statutes 75% of the full amount of the lien or charge being contested, but not to exceed the proceeds payable under its insurance policy, and the insurance company shall issue a draft payable 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 its insurance policy, pending termination of all proceedings in accordance with the state statutes.
B.
The Borough Council of the Borough of North Haledon
may by resolution enter into an agreement with the owner of any fire-damaged
property situated in the Borough of North Haledon to pay in full all
actual or anticipated demolition costs, all delinquent taxes, assessments
or other municipal liens by installments pursuant to N.J.S.A. 54:5-19
or for the redemption of a tax sale lien by installment payments pursuant
to Article 7 of Chapter 5 of Title 54 of the Revised Statutes of New
Jersey, if the Borough Council is satisfied that the claim for fire
damages is to be used to restore or improve the fire-damaged property.
In the event of such a resolution, a certified copy of said resolution
shall be sent to the insurance company authorizing the insurance company
to make full payment on the claim to the insured.
C.
Notwithstanding the provisions of § 288-1A of this chapter, an insurance company may pay proceeds of a fire insurance policy to a mortgagee of fire-damaged real property where the fire insurance policy at the time of the loss listed the mortgagee as a named insured, provided said payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract. For the purposes of this subsection, a "mortgagee" is defined as a holder of a purchase money mortgage held as a first mortgage or an institutional lender which is a holder of a mortgage on the fire-damaged property.
D.
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.
E.
No change to the within chapter shall take effect
until filed with the Commissioner of Insurance.
F.
This chapter shall take effect upon passage and publication
as provided by law and upon filing with the Commissioner of Insurance.
