City of Hackensack, NJ
Bergen County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Hackensack: Article I, 6-4-1979 as Ord. No. 18-79. Amendments noted where applicable.]
[Adopted 6-4-1979 as Ord. No. 18-79]
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claims in excess of $2,500 on any real property located within the City of Hackensack unless or until the insured person submits an official certificate of search for municipal liens pursuant to N.J.R.S. 54:5-12, certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable to the City of Hackensack against said property have been paid or the City of Hackensack submits a certified copy of a resolution adopted pursuant to § 101-4 of this Article as permitted by Section 4 of Chapter 184 of the Laws of the 1978 of the State of New Jersey.
Any insurance company authorized to issue fire insurance policies in the State of New Jersey on real properties located within the City of Hackensack is prohibited from paying to a claimant any claim in excess of $2,500 for fire damages on any real property located within the City of Hackensack pursuant to any fire insurance policy issued or renewed after the final adoption of this Article and after the filing of this Article with the New Jersey State Commissioner of Insurance until such time as all taxes and assessments and all other municipal liens or charges due and payable to the City of Hackensack appearing on the official certificate of search shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 101-3 of this Article and Section 3 of Chapter 184 of the Laws of 1978 of the State of New Jersey, or the City of Hackensack submits to such insurance company a copy of a resolution adopted pursuant to § 101-4 of this Article and pursuant to Section 4 of said Chapter 184 of the Laws of 1978.
Unless a resolution is received in accordance with § 101-4 of this Article, any insurance company writing fire insurance policies covering property in the City of Hackensack shall, prior to the payment of any claims for fire damage in excess of $2,500, pay to the City of Hackensack the amount of the liens appearing on the official certificate and such other recorded 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 the property pursuant to N.J.R.S. 54:3-21, the insurance company shall withhold 75% of the full amount of the lien or charge being contested pending determination of all proceedings, at which time such money and all interest accruing thereon at a rate paid on interest-bearing accounts in banking institutions or savings and loan associations in the State of New Jersey shall be disbursed in accordance with the final order of judgment of the court.
Where the fire-damaged real property is located in the City of Hackensack, the City Council of the City of Hackensack may enter into an agreement with the owner of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal items by installments pursuant to N.J.R.S. 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 Revised Statutes, if the City Council 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 by the City Council is authorized to make full payment of the claim to the insured person.
A municipal claim made in accordance with the provisions of Chapter 184 of the Laws of 1978 and the provisions of this Article shall be paramount to any other claims on the proceeds of the fire insurance policy except the claim of a holder of a mortgage on the fire-damaged property, where the fire insurance policy at the time of the loss listed the mortgagee as a named insured, in which event the claim of the mortgagee to the proceeds shall be paramount to the municipal lien under this Article only to the extent of the amount due and payable to the mortgagee under the mortgage contract.
Nothing in this Article shall be construed:
A. 
To obligate an insurance company for any amount in excess of the value of the fire insurance policy on the property or the amount of the liability of the insurance company thereunder.
B. 
Except as provided in the case of appeals under § 101-3 of this Article, to obligate the insurance company for any liens not appearing on the official certificate or any certified changes submitted by the bonded official.
C. 
To affect the authority of the city to enforce its municipal lien under any other law of the State of New Jersey.
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.
This Article shall be filed with the New Jersey State Commissioner of Insurance pursuant to the provisions of Chapter 184 of the Laws of 1978 of the State of New Jersey.
As used in this Article, the following terms shall have the meanings indicated:
INSURED PERSON
Includes all parties having interest in the real estate affected by fire damage and all parties insured under the terms and provisions of the fire insurance coverage of the property damaged.