[Adopted 10-27-1981 by Ord. No. 14-81;
amended in its entirety at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
Pursuant to the authorization of N.J.S.A. 17:36-8
et seq., there is hereby adopted an ordinance to ensure the payment
of taxes, assessments or other municipal liens due and payable on
real property in the Village of Ridgefield Park when said property
is covered by fire insurance in excess of $2,500 and is damaged or
destroyed by fire and to ensure that, if demolition is required, the
costs of demolition have been paid or escrowed.
This article shall apply to any fire insurance
policy issued or renewed after the adoption of this article and after
the filing of this article with the State Commissioner of Insurance.
A.
The payment to a claimant by any fire insurance company
authorized to issue fire insurance policies in this state of any claim
in excess of $2,500 for fire damages on any real property located
within the Village of Ridgefield Park is hereby prohibited until:
(1)
Such time as all taxes and assessments or charges
due and payable appearing on an official certificate of search for
Village liens pursuant to N.J.S.A. 54:5-12, dated subsequent to the
fire, shall have been paid either by the owner of such real property
or by the insurance company pursuant to the provisions of this article;
or
B.
In addition, prior to payment, the insured is required
to submit an official certificate executed by the Village of Ridgefield
Park that demolition is not required or the costs of demolition have
been paid.
C.
If the demolition has not yet occurred on the date
of receipt by the Village of a request for execution of the certificate
required by this section, the insured shall provide on that certificate
an estimate of the anticipated costs of demolition. The insurer, on
notice to the insured, shall then pay the anticipated costs of demolition
to the Village, which shall hold the funds in an interest-bearing
escrow account until the demolition occurs or the actual costs of
demolition are determined and paid.
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 Village liens or related charges due and payable subsequent
to the preparation of the official certificate.
If it is satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property, the governing body of the Village may submit to the insurance company a certified copy of a resolution by which it has entered into an agreement with the owner of any fire-damaged property to accept payment in full of all delinquent taxes, assessments or other municipal liens or charges in installments pursuant to N.J.S.A. 54:5-19 or for redemption of the tax sale lien by installment payments pursuant to Article 7 of Chapter 5 of Title 54 of the Revised Statutes.
Unless a resolution is received in accordance
with this article by an insurance company writing fire policies in
the Village of Ridgefield Park, such insurance company is hereby authorized
and required, prior to payment of any claims for fire damages in excess
of $2,500, to pay to the Village of Ridgefield Park the amount of
the liens appearing in the official certificate or in any alteration
thereof pursuant to this article 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 the 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 and all
interest accruing thereon at a rate paid on interest-bearing accounts
in banking institutions or savings and loan associations in the state
shall be disbursed in accordance with the final order or judgment
of the court.
Except as provided in the case of appeals under
this article, nothing in this article shall be construed to obligate
the insurance company for any liens not appearing on the official
certificate or in any certified changes therein submitted to the insurance
company by the bonded official.
The Village's claim made in accordance with
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 file process
shall be paramount to the municipal lien only to the extent of the
amount due and payable to the mortgagee under the mortgage contract.
Upon its adoption, this article and any subsequent
amendment thereof shall be filed with the New Jersey State Commissioner
of Insurance as required by law.
