[HISTORY: Adopted by the Board of Commissioners (now City Council) of the City of Atlantic City 3-15-1979 by Ord. No. 13-1979. Amendments noted where applicable.]
Every insurance company is prohibited from paying a claimant any claim in excess of $2,500 for fire damages on any real property located within the City of Atlantic City pursuant to any fire insurance policy issued or renewed after the effective date of this chapter and after the filing of this chapter 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 final certificate of search shall have been paid either by the owner of such real property or by the insurance company, pursuant to § 126-2 of this chapter or pursuant to a resolution of the City Council adopted pursuant to § 126-3 of this chapter.
Unless a resolution is received by an insurance company pursuant to § 126-3 of this chapter, all insurance companies are required, prior to the payment of any claims for fire damage in excess of $2,500, to pay to the City of Atlantic City the amount of the 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 or savings-and-loan associations in the state shall be disbursed in accordance with the final order or judgment of the court.
The City Council may authorize the Tax Collector, by resolution, to enter into agreements with the owners of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal liens by 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, 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 any such resolution adopted by the City Council is authorized to make full payment on the claim to the insured person.
Editor's Note: See N.J.S.A. 54:5-65 to 54:5-76.