Source: https://ecode360.com/7090484
Timestamp: 2019-04-26 02:41:31+00:00

Document:
§ 128-2 Notice of intention to claim.
§ 128-3 Claim shall constitute special lien.
§ 128-4 Conflict with other provisions.
§ 128-5 Release of proceeds.
§ 128-6 Conditions of release of proceeds.
§ 128-7 Termination of right of insured to assert claim.
§ 128-8 Fund for fire insurance proceeds.
§ 128-9 Disposition of proceeds.
§ 128-10 Continuance of liens in effect until paid.
§ 128-11 Purpose of agreements; repairs not Town project.
§ 128-12 Power of Comptroller to promulgate rules and adopt approved forms.
The Comptroller for the Town of Rotterdam.
Any unpaid tax, special ad valorem levy, special assessment or other charge imposed upon real property by or on behalf of the Town of Rotterdam or special district, which is an encumbrance on real property and which has remained undischarged for a period of one year or more.
A lien upon fire insurance proceeds pursuant to this chapter and § 22 of the General Municipal Law and § 331 of the Insurance Law, and any amendments thereto.
The Comptroller shall file a notice of intention to claim against the proceeds of fire insurance policies with the State Superintendent of Insurance for entry in the Index of Tax Districts in accordance § 22 of the General Municipal Law, the New York State Insurance Law and all rules and regulations promulgated by the New York State Department of Insurance with respect to this procedure.
Prior to the payment of any proceeds of a policy of insurance for damages caused by fire to real property, which policy insures the interest of an owner and is issued on real property located within the Town of Rotterdam, and following notification to the Comptroller by an insurer of the filing of a claim for payment of such proceeds, the Comptroller shall claim, by serving a certificate of lien, against such proceeds to the extent of any lien, including interest and penalties to the date of the claim, thereon, which claims, when made and perfected in the manner provided for in § 22 of the General Municipal Law and § 331(a) of the Insurance Law, and any amendments thereto, shall constitute a special lien against such proceeds and shall, as to such proceeds, be prior to all other liens and claims except the claim of a mortgagee of record named in such policy. Notice of the service of the certificate of the special lien shall be given to the insured by certified mail.
The provisions of this chapter shall not be deemed or construed to alter or impair the right of the Town of Rotterdam to acquire or enforce any lien against property but shall be in addition to any other power provided by law to acquire or enforce such right.
Whenever the proceeds of a policy of fire insurance which will be or has been paid to the Town of Rotterdam instead of an insured, all or part of such proceeds may be paid or released to the insured if the insured satisfies the Comptroller that the affected premises have been or will be repaired or restored, that such repairs or restoration are in the public interest and that the insured is issued and complies with an agreement entered into pursuant to this chapter. To secure such payment or release of proceeds, the insured must notify the office of the Comptroller for the Town of Rotterdam within 45 days after the mailing to the insured of a notice of the service of the certificate of special lien, pursuant to § 128-3 of this chapter, of the intention to restore or repair the affected premises and must file with the Comptroller a completed application with all required supporting documentation, pursuant to § 128-6 of this chapter, within 60 days thereafter, unless the Comptroller grants an extension for a stated period of time.
Such release or return shall be subject to the repair or restoration of the affected premises, in accordance with applicable building laws, to the condition it was in prior to the time the lien of the Town of Rotterdam arose or to any improved conditions.
A complete description of the nature and extent of the damage to the insured premises and of the condition of the premises prior to the time the lien of the Town arose.
An estimated time schedule showing how long the repairs or restoration, and each phase thereof, will take.
Such other information as may be required by the Comptroller to enable him to determine whether the repairs or restoration are in the public interest and will be or have been timely and properly made.
Upon preliminary approval of an application by the Comptroller and the Building Inspector/Code Enforcement Officer, the Comptroller may enter into a written agreement with the insured, which shall set forth the terms and conditions for the release and return of all or part of the proceeds, and the Comptroller is hereby authorized to enter into such agreement on behalf of the Town of Rotterdam.
The repairs or restoration required by the Comptroller shall be completed in compliance with the terms and conditions of the agreement prior to the release or return of any part of the insurance proceeds; provided, however, that the Comptroller may, upon the written request of the insured and in its sole discretion, approve a prior release of such proceeds or a portion thereof in a lump sum or in installments, where the insured certifies and demonstrates that such release is required to permit such repairs or restoration to go forward. Any such insurance proceeds released or returned prior to the completion of the repairs or restoration required by the Comptroller may be paid directly to the contractor or contractors responsible for making such repairs or restoration. Such payment shall, to the extent thereof, release the Comptroller from further liability to the insured.
Whenever the Comptroller releases the entire amount of the proceeds prior to compliance with the terms and conditions of the agreement, the insured shall post an undertaking in an amount sufficient to assume the restoration or improvement of the property.
If the insured fails to notify the Town of Rotterdam of its intention to repair or restore the affected premises, as required in § 128-5 of this chapter, or fails to file a completed application pursuant to this chapter or fails to enter an agreement with the Comptroller or comply therewith within the time set forth, the right of the insured to assert a claim against the insurance proceeds, except to the extent it exceeds the amount of the lien, shall terminate.
There shall be established in the office of the Comptroller a fund for the deposit of fire insurance proceeds to be held and applied in accordance with this chapter. Such funds shall not be held together with the general tax levies in the general fund.
Until such termination, any insurance proceeds received by the Town of Rotterdam shall be deposited in a special fund and shall be retained therein. Upon termination of the insured's right to claim against the proceeds, the proceeds and any interest accrued thereon shall be applied to the liens affecting the premises in a manner to be determined by the Comptroller and may be transferred to the general fund.
Any agreement entered into by the Comptroller pursuant to this chapter shall be for the purpose of preserving and evidencing the right of release of the special lien created by this chapter and shall be subject solely to the provisions of this chapter. Any repair or restoration performed in anticipation of a release of insurance proceeds shall not be deemed to be a public work or Town project nor to have been done pursuant to a Town contract.
The Comptroller shall be empowered to promulgate rules and regulations and to adopt approved forms to be used by applicants.

References: § 128

§ 128

§ 128

§ 128

§ 128

§ 128

§ 128

§ 128

§ 128

§ 128
 § 22
 § 331
 § 22
 § 22
 § 331
 § 128
 § 128
 § 128