[HISTORY: Adopted by the Mayor and Council of the Borough of Westwood 4-24-1979 by Ord. No. 820. Amendments noted where applicable.]
This chapter shall be known as the "Insurance Lien Claim Ordinance."
The Mayor and Council of the Borough of Westwood hereby adopts the provisions of Chapter 184 of the Laws of 1978.
It shall be unlawful for any insurance company to make payments on any claim in excess of $2,500 on any real property located within the Borough of Westwood pursuant to any fire insurance policy issued or renewed after this chapter has been formally adopted and filed with the State Commissioner of Insurance until such time as all taxes and assessments and all other municipal liens or charges due and payable appearing on the official certificate of search have been paid by the owner of such real property or by the insurance company in accordance with Section 3, Chapter 184, of the Laws of 1978 or, in the alternative, until the municipality submits to the insurance company a copy of a resolution adopted pursuant to Section 4, Chapter 184, of the Laws of 1978.
Unless a resolution as provided above is received by an insurance company writing fire insurance policies within the Borough of Westwood, said insurance company is hereby required, prior to the payment of any claims for fire damages in excess of $2,500, to pay the municipality the amount of any liens and costs of demolition 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 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 and savings and loan associations of the state shall be disbursed in accordance with final order of judgment of the court.
The Mayor and Council may enter into an agreement with the owner of any fire-damaged property to pay delinquent taxes, assessments or other charges by installments pursuant to N.J.S.A. 54:5-19 or other valid statutory provisions, provided that the Governing Body finds as a matter of fact that the proceeds of the fire-damaged property are to be used for the purpose of restoring or improving the fire-damaged property.
The municipal claim made pursuant to this chapter or Chapter 184 of the Laws of 1978 shall be paramount to all other claims on the proceeds of the fire insurance policy except for the claim of mortgage holders on the fire insurance policy whose names appear as loss payees in any such policy. In such event, said mortgagees shall only have a paramount claim to the extent of the balance due and owing upon the mortgage contract.