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ORDINANCE 1998-08ORDINANCE 98-11 AN ORDINANCE AMENDING ORDINANCE ENTITLED "REVISED GENERAL ORDINANCES TOWNSHIP OF CHERRY HILL ", CHAPTER 2, ARTICLE XXIV [FIRE INSURANCE CLAIMS] WHEREAS, pursuant to New Jersey State Law (N.J.S.A. 17:36 -9), a municipality may, by ordinance, prohibit the payment to a claimant by any insurance company of any claim in excess of $2,500.00 for fire damages on any real property located within the municipality, pursuant to any fire insurance policy issued or renewed after the adoption of such ordinance and after the filing with the State Commissioner of Insurance; and WHEREAS, pursuant to N.J.S.A. 17:36 -9, after such Ordinance is adopted and filed, fire insurance policies may not be paid until such time as anticipated demolition costs, all taxes and assessments and all other municipal liens and charges have been paid in accordance with N.J.S.A. 17:36 -9 et. seq. NOW, THEREFORE, BE IT ORDAINED, by the Township Council of the Township of Cherry Hill that Section 2 -47 be added to the Revised General Ordinances, Township of Cherry Hill, Chapter 2, Article XXIV and shall read as follows: 2 -47 FIRE INSURANCE CLAIMS. 2 -47.1 PAYMENT OF CLAIMS RESTRICTED. A. 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 two thousand five hundred dollars ($2,500.00) for fire damages on any real property located within the Township of Cherry Hill pursuant to any fire insurance policy issued or renewed after the adoption of this Article and the filing of this Article with the State Commissioner of Insurance until such time as: (1) All taxes and assessments and all other municipal liens or charges due and payable appearing on the official certificate of search for municipal liens and any anticipated demolition costs shall have been paid either by the owner of such real property or by the insurance company; or (2) The municipality submits to the insurance company a copy of a resolution authorizing an agreement for installment payments as provided by 2 -47.2 of this Article. B. In the event that an appeal is taken on the amount of 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 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 of New Jersey shall be disbursed in accordance with a final order or judgment of the court. 2 -47.2 Agreement for installment payments. A. The Township Council of the Township of Cherry Dill may, by resolution, enter into an agreement with the owner of any fire - damaged property situated in the Township of Cherry Hill to pay in full all delinquent taxes, assessments or other municipal liens by installments pursuant to N.J.S.A. 54:5 -19 or for the redemption of a tax sale lien or for the payment in full of any anticipated costs of demolition by installment payments pursuant to Article 7 of Chapter 5 of title 54 of the Revised Statutes of New Jersey, if the Township Council is satisfied that the claim for fire damage is to be used to restore or improve the fire- damaged property. B. In the event of such a resolution, a certified copy of said resolution shall be sent to the insurance company authorizing the insurance company to make full payment on the claim to the insured. 2 -47.3 Payments to mortgagee. A. Notwithstanding the provisions of 2-47.1 of this Article, an insurance company may pay proceeds of a fire insurance policy to the extent authorized by N.J.S.A. 17:36 -12 to a mortgagee of fire- damaged reai property where the fire insurance policy, at the time of the loss, listed the mortgagee as a named insured, provided that said payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgage contract. B. Any claim on behalf of the Township made in accordance with the provisions of this Article and N.J.S.A. 17:36 -1 et seq. shall be paramount to any other claims on the proceeds of the fire insurance policy, except s provided in Subsection A of this section. 2 -47.4. Amendment or modification of otTciai certificate of search. The official certificate of search may, from time to time, be altered by the bonded official responsible for preparing such certificates in order to cancel any error omissions or to add any municipal liens or related charges due and payable subsequent to the preparation of the official certificate. 2 -47.5. Provisions to be fled with Commissioner of Insurance. Upon the adoption of this Article, a certified copy shall be filed by the Clerk of the Township of Cherry Hill with the State Commissioner of Insurance pursuant to N.J.S.A. 17:36 -9. 2 -47.6 Statutory provisions incorporated by reference; conflict with statutory provisions. A. All other powers conveyed and reserved to the Township of Cherry Hill by N.J.S.A. 17 :36 -8 through 36 -13, as now or hereafter amended, not specifically set forth in this Article are hereby incorporated by reference and enacted by the Township of Cherry Hill. B. Any provisions of this Article inconsistent with the provisions ofN.J.S.A. 17:36 -8 through 36 -13, as now or hereafter amended, are hereby modified or repealed to the extent of such inconsistencies, but all other parts of this Article shall remain in full force and effect. INTRODUCED: January 26 , 1998 ADOPTED: February 9 , 1998 COUNCIL PRESIDENT SUSAN BASS LEVLN MAYOR MY C. CLOTH, RMC CLE TOWNSHIP OF CHERRY HILL