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Home My Public Portal About95-29Councilman Plesenls the Following Ordinance Seconded by Councihmm FIRE INSURANCE CLAIMS BE IT ORDAINED by the Mayor and Council of the Borough of Carteret: 1. Title This ordinance shall be known by its short form title as the "Borough of Carteret Fire Insurance Ordinance" 2. Purpose The purpose of this ordinance is to ensure the payment of taxes, demolition costs, assessments or other municipal liens due and payable on real property in the Borough of Carteret when said property is covered by fire insurance in excess of Two Thousand Five Hundred Dollars ($2,500.00) and is damaged or destroyed by fire. 3. Applicability This ordinance shall apply only to fire insurance policies issued or renewed at, er the adoption of this ordinance and after the filing of this ordinance with the New Jersey State Commissioner of Insurance. 4. Conditions of Payment The payment to a claimant by any fire insurance company authorized to issue fire ipqurance policies in this State of any claim in excess of Two Thousand Five Hundred Dollars ($2,500.00) for fire damages on any real property located within the Borough of Carteret is hereby prohibited until: '- A. 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 of by the insurance company pursuant to the provisions of Paragraph 7 of the ordinance; or B. The Borough submits to the insurance company a certified copy ora resolution adopted pursuant to Paragraph 6 of this ordinance. C. Any and all demolition orders pursuant to Section 198 of the Code of the Borough of Carteret are complied with. Insurance proceeds in the amount required to complete the demolition only may be released. 5. Alteration of Certification of Search The official certificate of search may from time to time be altered by the bonded official responsible for preparing such certificate 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. ~O. 95-29 PAGE 2 6. Provisions for Payment of Delinquent Taxes and Liens 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 of' Carteret 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 payments in full of' all delinquent taxes, demolition costs, assessments or other municipal liens or charges by installments pursuant to NJS. A. 54:5-19 or f,or redemption of.the tax sale lien by installment payments pursuant to Article 7 of.Chapter 5 of.Title 54 of.the Revised Statutes. 7. Payment of Delinquent Taxes and Liens by Insurance Company Unless a resolution is received in accordance with Paragraph 6 of this ordinance by an insurance company writing fire policies in the Borough of Carteret, such insurance company is hereby authorized and required prior to payment of any claims for fire damages in excess of Two Thousand Five Hundred Dollars ($2,500.00) to pay to the Borough of Carteret the amount of the liens appearing in the official certificate or in any alteration thereof, pursuant to Paragraph 5 of this ordinance 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 seventy-five percent (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 judgement of the court. 8. Obligation of Insurance Company for Liens not on Official Certificate Except as provided in the case of appeals under paragraph of this ordinance nothing in this ordinance 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 Construction Code Official, Demolition Officer and or Municipal Treasurer. 9. Priority of Claims The Borough's claim made in accordance with the provisions of this ordinance shall be paramount to any other claims on thc proceeds of.the fire insurance policy except the claim of'a holder or a mortgage on the fire-damaged property where the fire insurance policy at the time o£ the loss listed the mortgage as a named insured in which event the claim of, the mortgage 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. NO. 95-29 PAGE 10. Filing Required Upon its adoption, this ordinance and any subsequent amendment thereof shall be filed with the New Jersey State Commissioner of Insurance as required by law. 11. Effective This ordinance shall take effect upon its passage and publication according to law and the filing thereof with the State Commissioner of Insurance. DO NO]' USE SPACE BELOW THIS LINE RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B. BIALOW~ X SI2'II~ZA X FEINGOLD X STIGLIC X O' BRIEiN X ZII~IBA X X - Indicate Vole AB - Absent NV Not Voting XOR - Indicates Vote to Overrule Veto sj Adopted on first reading of the Council of the Borough of Carteret, N.J., on June 1. 1995 Adopted on second reading after hearing on JUNE 15, 1995 APPROVED BY ~ '~.-..~,.~.-- c..<.~ ~ O.~.~ oN -- -- ~<T M UNICIPflL\CLERK NOI~CE A, Such t]me as ali t ...... d ........ t, or charges o se~rc~ or ~orough I]ens pursu*nt to N.J.S.A. ~ZC~I ~ '~. ~ ~ ~.,...~. State of New Jersey. ) ss.: t~ebeal~eredbythe~.de4offlc,alresp0.$ible'or County of Middlesex. ) reparaton o the official certificate. ~NA B~KOWSKI ~ ..d to restore or ,reprove the t,re~amaged of the said county, being duly sworn, say that she is ,.,o ...,r~e.~., ". ~"'~ ~' '"y .r.- a Legal clerk for The News Tribune. a newspaper ,.~.~.~,.,,.,,~.n,,.~ .... ~u~.u.. ,o published in Woodbridge. in the County of Middlesex n~Company - aforesaid, and that the notice of which the annexed c.;,.r.,, ,u~, ~..~. ...... ~'"~" "~'"Y is a printed copy. was published in the said newspaper .~.~,,,.t....~...H..~ .... h .......,,.. being 1 time(s)/ 1 week(s) successively at least )fflcielcertN,cate me this 6th. day of June ) t.~orta.e*co.,~.~,. ~ Notary Public of N.J. /.,~'~./'7:3~ .... i:{.EF# 115701 ~"~. '~" !'395 CARTERET, BORe OF GLORIA GOODRICH, PUR BORO HALL ~ . CARTERET, NJ 07008 State of New Jersey, ) ss,: County of Middlesex. ) ANNA BANKOWS KI of the said county, being duly sworn, say that she is a Legal clerk for The News Tribune, a newspaper published in Woodbridge, in the County of Middlesex aforesaid, and that the notice of which the annexed is a printed copy, was published in the said newspaper June 23rd. 1995 being 1 time(s)/ 1 week(s) successively at least one in each week. Sworn and subscribed to before ) me this 23rd. day of June ) A. D. __ 1995 __) Notary Public of N.J. :ONSTANCE HOLUBOWSKI ?FAR¥ PUBLIC OF NEW JERSEY My (~'nmissk)n E~pires A~d114, 19'~