[HISTORY: Adopted by the Common Council of the City of Egg Harbor
City 4-11-1991 by Ord. No. 9-1991; amended
in its entirety at time of adoption of Code (see Ch. 1, General Provisions,
Art. I). Subsequent amendments noted where applicable.]
A.
Pursuant to N.J.S.A. 17:36-8 et seq., no insurance company
authorized to issue fire insurance policies in the State of New Jersey shall
pay to a claimant any claim in excess of $2,500 for fire damages on any real
property located within the City of Egg Harbor City, pursuant to any fire
insurance policy issued or renewed after the adoption of this chapter and
the filing of this chapter with the State Commissioner of Insurance, until
such time as:
(1)
All taxes and assessments and all other municipal liens
or charges levied and assessed and due and payable appearing on the official
certificate of search for municipal liens pursuant to N.J.S.A. 54:5-12 shall
have been paid either by the owner of such real property or by the insurance
company; and
(2)
The insured person submits an official certificate, on
a form prescribed and certified by the Tax Collector of the city, that demolition
is not required or that the costs of demolition or anticipated demolition
have been paid.
B.
If a demolition has not yet occurred on the date of receipt
of a request for an official certificate of search pursuant to this section,
the insurer shall provide on that certificate an estimate of the anticipated
costs of demolition. The insured, on notice, shall pay the anticipated cost
of demolition to the city, which shall hold the funds in an interest-bearing
escrow account in a state or federally charted bank, savings banks or savings
and loan association in this state.
Any request for an official certificate of search for municipal liens
shall specify that the search concerns fire-damaged property.
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 issue a draft payable to the court of
record, to be held by the court in an interest-bearing escrow account in the
state or federally chartered bank, savings bank or savings and loan association
in the state, in an amount totaling 75% of the full amount of the lien or
charge being contested, but not to exceed the proceeds payable under its insurance
policy, and the insurance company shall issue a draft payable to the city
for the remaining 25% of the lien or charge being contested, with the full
amount paid by the insurance company to the court and the city, not to exceed
the proceeds payable under its insurance policy, pending termination of all
proceedings, at which time such moneys and all interest accruing thereon at
a rate paid on interest-bearing accounts in state or federally chartered banks,
savings bank or savings and loan association to the state shall be disbursed
in accordance with the final order or judgment of the court.
