[HISTORY: Adopted by the Borough Council of the Borough of Eatontown
as indicated in article histories. Amendments noted where applicable.]
[Adopted 2-28-1979 by Ord.
No. 2-79]
This article shall be known by its short-form title as the "Eatontown
Fire Insurance Ordinance."
The purpose of this article is to ensure the payment of taxes, assessments
or other municipal liens due and payable on real property in the Borough of
Eatontown, when said property is covered by fire insurance in excess of $2,500
and is damaged or destroyed by fire.
This article shall apply only to fire insurance policies issued or renewed
after the adoption of this article and after the filing of this article with
the New Jersey State Commissioner of Insurance.
The payment to a claimant by any fire insurance company authorized to
issue fire insurance policies in this state of any claim in excess of $2,500
for fire damages on any real property located within the Borough of Eatontown
is hereby prohibited until:
A.Â
Such time as all taxes and assessments or charges due and payable appearing on an official certificate of search for Borough liens pursuant to N.J.S.A. 54:5-12, dated subsequent to the fire, shall have been paid either by the owner of such real property or by the insurance company pursuant to the provisions of § 186-7; or
The official certificate of search may from time to time be altered
by the bonded official responsible for preparing such certificates, in order
to correct any errors or omissions or to add any Borough liens or related
charges due and payable subsequent to the preparation of the official certificate.
If it is satisfied that the claim for fire damages is to be used to
restore or improve the fire-damaged property, the governing body of the Borough
may submit to the insurance company a certified copy of a resolution by which
it has entered into an agreement with the owner of any fire-damaged property
to accept payment in full of all delinquent taxes, assessments or other municipal
liens or charges 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 New Jersey Revised Statutes.
Unless a resolution is received in accordance with § 186-6 by an insurance company writing fire policies in the Borough of Eatontown, such insurance company is hereby authorized and required, prior to payment of any claims for fire damages in excess of $2,500, to pay to the Borough of Eatontown the amount of the liens appearing in the official certificate, or in any alteration thereof pursuant to § 186-5, and such other recorded liens or related charges as may be certified to the insurance company; provided, however, that if an appeal is taken on the amount of the 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.
Except as provided in the case of appeals under § 186-7, nothing in this article shall be construed to obligate the insurance company for any liens not appearing on the official certificate or in any certified changes therein submitted to the insurance company by the bonded official.
The Borough's claim made in accordance with the provisions of this article
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-damaged 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 process
shall be paramount to the municipal lien only to the extent of the amount
due and payable to the mortgagee under the mortgage contract.
Upon its adoption, this article and any subsequent amendment thereof
shall be filed with the New Jersey State Commissioner of Insurance as required
by law.
