[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.[1]
[1]
Editor's Note: See N.J.S.A. 17:36-8 et seq.
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[1] 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.[2]
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[1] 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.
[1]
Editor's Note: See N.J.S.A. 17:36-8 et seq.
