[HISTORY: Adopted by the Borough Council
of the Borough of Medford Lakes 1-23-1992 by Ord. No. 301. Amendments
noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 122.
It is the purpose of this chapter to implement
the provisions of N.J.S.A. 17:36-8 to 17:36-13 to provide a means
whereby municipal liens are a first claim and paramount to all other
claims on fire insurance proceeds payable with respect to fire-damaged
real property located in the Borough of Medford Lakes.
This chapter shall apply to all real property
located within the Borough of Medford Lakes, County of Burlington,
State of New Jersey.
This chapter shall apply to any claim in excess
of $2,500.
No insurance company authorized to issue fire insurance policies in the State of New Jersey shall pay any claim in excess of the amount set forth in § 117-3 for fire damages on any real property located within the Borough of Medford Lakes pursuant to any fire insurance policy issued or renewed after the effective date of this chapter until such time as all taxes and assessments and all other municipal liens or charges due and payable appearing on an official certificate of search shall have been paid either by the owner of such real property or by the insurance company, or the Borough submits to the insurance company a certified copy of a resolution authorizing said payment.
A.
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 Medford Lakes is hereby prohibited until:
(1)
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 this chapter;
or
(2)
The Borough submits to the insurance company a certified
copy of a resolution adopted pursuant to the provisions of § 104-5
of this chapter.
(3)
In addition, prior to payment, the insured is required
to submit an official certificate executed by the Borough of Medford
Lakes that demolition is not required or the costs of demolition have
been paid.
B.
If the demolition has not yet occurred on the date
of receipt by the Borough of a request for execution of the certificate
required by this section, the insured shall provide on that certificate
an estimate of the anticipated costs of demolition. The insurer on
notice to the insured shall then pay the anticipated costs of demolition
to the Borough which shall hold the funds in an interest-bearing escrow
account until the demolition occurs or the actual costs of demolition
are determined and paid.
The official certificate of search shall be
prepared by the Tax Collector upon request from the insurance company
or the owner of property and may be altered from time to time 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.
Within 60 days of receipt of the official certificate
of search, should any liens or related charges appear thereon, the
owner of the property or the insurance company shall pay directly
to the Borough the amount of liens appearing on said official certificate
and such other recorded liens or related charges as may be certified
to the insurance company.
If an appeal is taken on the amount of lien
or charge, other than an appeal on the assessed evaluation 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.
Upon termination of all proceedings, such monies and all interest
accumulating thereon shall be disbursed in accordance with the final
order or judgment of court.
The Borough Council may, by resolution, authorize
an agreement with the owner of fire-damaged property to pay in full
all delinquent taxes, assessment or 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, if the Borough Council is satisfied
that the claim for fire damages is to be used to restore or improve
the fire-damaged property. Upon receipt of a certified copy of said
resolution, the insurance company shall be authorized to make full
payment to the insured person.
[Amended 4-23-2014 by Ord. No. 615]
Any person, firm, corporation, association or legal party whatsoever who or which shall violate, or authorize or procure a violation, or cause to be violated, any provision of this chapter shall, upon conviction thereof, be punishable as provided under the general penalty provisions found at § 1-15 of this Code. This, however, shall not apply against any municipal employee or officer that authorizes action by permit or otherwise in the ordinary course of their duties.
