[HISTORY: Adopted by the Township Council of the Township of Old Bridge 10-27-1997 by Ord. No. 37-97. Amendments noted where applicable.]
The purpose of this chapter is to prohibit the payment to a claimant by any insurance company of any claim in excess of $2,500 for fire damage on all real property improvements located within the Township pursuant to any type fire insurance policy issued or renewed after the adoption of this chapter and the filing of this chapter with the New Jersey 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 shall have been paid as hereinafter provided and pursuant to N.J.S.A. 17:36-8 et seq.
The prohibition of the payment by any insurance company by the Township pursuant to § 180-1 is in accordance with N.J.S.A. 17:36-8 et seq.
The Mayor and Council may enter into an agreement with the real property owner of any fire-damaged property to pay in full all delinquent taxes, assessments or other municipal liens by installment 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, provided the Mayor and Council are satisfied that the claim for fire damages is to be used to restore or improve the fire-damaged property. The Mayor and Council by resolution may then authorize the insurance company involved to make full payment on the claim to the insured property owner. The resolution shall verify the agreement made with the property owner.
Unless a certified copy of the resolution is received by the insurance company in accordance with § 180-3 of this chapter, the insurance company authorized to write fire insurance policies in the Township shall be required and authorized, prior to the payment of any claims for fire damage in excess of $2,500, to pay to the Township of Old Bridge the amount of the liens or the related charges as may be certified to the said insurance company. In the event 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 account in a banking institution or savings and loan association in the state, shall be distributed in accordance with the final order or judgment of the court.
No insurance company authorized to issue the fire insurance policies in the Township shall pay any claims in excess of $2,500 on any real property in the Township unless or until the insured person submits an official certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12 certifying that all taxes, assessments or other municipal liens or charges levied and assessed and due and payable against the property have been paid or a certified copy of a resolution is submitted pursuant to § 180-3 of this chapter.
A certified true copy of this chapter shall be filed with the New Jersey State Commissioner of Insurance within five days after adoption, and no changes or amendments of this chapter shall take effect until filed with the Commissioner. The compliance within N.J.S.A. 17:36-9 shall be by the Commissioner.
The official certificate of search by the Township may be altered by the appropriate Township bonded officials responsible for preparing such certificates 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 official certificate.
A claim by the Township made in accordance with the provisions of this chapter 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 insurance 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 the proceeds shall be paramount to the municipal lien under this act only to the extent of the amount due and payable to the mortgage under the mortgage contract.
Pursuant to N.J.S.A. 17:36-13, every fire insurance policy issued on property situated in the Township shall be subject to the provisions of this act in addition to standard provisions for fire insurance policies as set forth in N.J.S.A. 17:36-5.20.
Nothing in this chapter shall be construed:
To obligate an insurance company for any amount in excess of the value of the fire insurance policy on the property or the amount of the liability of the insurance company thereunder.
Except as provided in the case of appeals under § 180-4 of this chapter, to obligate the insurance company for any lien not appearing on the official certificate or any certified changes, submitted by the appropriate Township officials.
To affect the authority of a municipality to enforce a municipal lien under any other law of this state.