[HISTORY: Adopted by the City Council of the City of Hoboken 2-21-1979 by Ord. No. C-111. Amendments noted where applicable.]
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 in the City of Hoboken unless:
The City issues to the insured an official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12, certifying that all taxes, assessments and other municipal liens and charges, levied and assessed and due and payable against the property covered by such insurance policy, have been paid, and which certificate is submitted to the insurance company by the insured; or
The City submits to the insurance company a certified copy of a resolution duly adopted by the City approving an agreement between the City and the owner of the insured property, in which said owner agrees to pay in full all delinquent taxes, assessments and other municipal liens by installments pursuant to N.J.S.A. 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 Revised Statutes of New Jersey (N.J.S.A. 54:5-65 to 5-76). No such resolution approving such agreement shall be adopted unless said owner shall agree, in writing, to use the proceeds from the policy to restore or improve the fire-damaged property.
Upon receiving a certified copy of the aforesaid resolution, the insurance company is authorized to make full payment of the claim to the insured person.
The official certificate of search required by Subsection A(1) above may, from time to time, be altered by the authorized official of the City 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 original official certificate.
In the event that the insurance company does not receive an official certificate of search, showing that all taxes, assessments and other municipal liens and charges have been fully paid or a certified copy of the resolution mentioned in § 99-1 of this chapter, then the insurance company is hereby authorized and required, prior to the payment of any claims for fire damages which are in excess of $2,500 to the owner of property in this City, to pay to the City the amount of the liens appearing on said official certificate and such other recorded liens and related charges as may be certified to the insurance company.
In the event that an appeal is taken on the amount of any lien or charge, other than an appeal on the assessed valuation of the realty involved 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 the rate paid on interest-bearing accounts in banking institutions or savings and loan associations in this state, shall be disbursed in accordance with the final order or judgment of the court.
A claim of the City upon the proceeds of a fire insurance policy made by the City, pursuant to N.J.S.A. 17:36-8 et seq. and of this chapter, shall be paramount to any other claims on said proceeds, except that the claim of the holder of a mortgage on the fire-damaged property where the policy lists the mortgagee as a named insured. The claim of such mortgagee shall be paramount to the City's lien only to the extent of the amount due and owing on the mortgage.
Editor's Note: Former Section 2 of the ordinance adopting the provisions of this chapter, which provided for the City Clerk to file a certified copy of the ordinance with the New Jersey Commissioners of Insurance immediately upon adoption, was omitted from the Code.
Nothing in this chapter shall be construed to obligate the insurance company for any amount in excess of the value of the policy; nor shall said company be liable for payment of any liens not appearing on the official certificate of search or on any changes made thereon which had been submitted to the company.
Nothing in this chapter shall be construed so as to affect the authority of the City to enforce the payment of a municipal lien under any other law of this state but shall be in addition to such other remedies.
All fire insurance policies covering real property in this City shall be subject to the provisions of the chapter as though fully set forth in each such policy of fire insurance.
The Director of the Department of Public Safety shall cause a written report to be issued and filed with the Tax Collector, as to each fire occurring in this City, containing the following information:
Said report shall be filed with the Tax Collector immediately after each fire, no matter how much the amount of the damage caused by the fire.
Upon receipt of the report of the Department of Public Safety, the Tax Collector shall cause to be made an official search of all taxes, assessments and other municipal liens and charges and shall issue an official certificate of all such liens or charges which are due and payable. Said Collector shall then submit said certificate to the insurance company involved. In the event that the Department of Public Safety shall not be able to ascertain the name and address of the fire insurance company, it shall be the duty of the Tax Collector to ascertain such information.
The Tax Collector shall install a clerical system for the issuance of supplemental certificates and the submission of the same to the insurance company, setting forth on such supplemental certificates any additional taxes or other municipal charges which have become due and payable subsequent to the issuance of the original certificate. Supplemental certificates shall be issued immediately as each new charge becomes due and payable.
Upon receipt of the notice of a fire, the Tax Collector shall notify each department and division of the City charged with the duty of certifying municipal charges which are unpaid to the Tax Collector who shall include the same on the official certificate of search. Such other departments and divisions are charged with the duty of installing clerical systems so that any charges which become due and payable on a fire damaged property subsequent to the original certification shall be submitted to the Tax Collector forthwith as such new charges become due.