NY Gen Mun L § 22 (2021)
2021 New York Laws GMU - General Municipal Article 2 - General Municipal Finances 22 - Claims Against Fire Insurance Proceeds; Procedure.

§ 22. Claims against fire insurance proceeds; procedure. 1. As used in this  section,  any  inconsistent  provision of law notwithstanding, the following terms shall have the following meanings:  (a) "Enforcing officer" means the elected or appointed officer of  any tax  district  charged by law with the duty to enforce the collection of tax liens on real property.  (b) "Governing body" means the legislative body for the tax district.  (c) "Lien" means an unpaid  tax,  special  ad  valorem  levy,  special assessment or other charge imposed upon real property by or on behalf of a  municipal  corporation or special district which is an encumbrance on real property, whether or not evidenced by  a  written  instrument,  and provided  that  one  such  tax,  levy,  assessment  or  other charge has remained undischarged for a period of one year or more.  (d) "Municipal corporation" means a county,  city,  town,  village  or school district.  (e)  "Real  property"  means  property upon which there is erected any residential, commercial or industrial building or  structure  except  an owner-occupied  single  family  residential structure and owner-occupied two family residential structures.  (f) "Tax district" means a county, city, town or  village  having  the power  to  enforce  the  collection of taxes, special ad valorem levies, special assessments or other charges imposed upon real property by or on behalf of a municipal corporation or special district.   2. Every tax district is hereby  authorized  and  empowered  to  claim against the proceeds of a policy of fire insurance insuring the interest of an owner and issued on real property located therein to the extent of any  lien  thereon  which  claim,  when made and perfected in the manner provided in this section, shall further constitute a lien  against  such proceeds  and  which  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.   3. Upon the adoption of a resolution by the governing  body  providing therefor, the enforcing officer of the tax district shall cause a notice of  intention  to  claim  against  proceeds  to be served upon the state superintendent of financial services for  entry  in  the  index  of  tax districts  maintained  by  him  as  provided  in  section  three hundred thirty-one of the insurance law. Thereafter the enforcing officer  shall render  to  any  insurer  the  certificate  required  and  in the manner prescribed by such section and the amounts stated  in  such  certificate shall be a lien on the proceeds of the insurance policy until paid.   4.  No  resolution adopted as provided for in subdivision three hereof shall be effective unless prior thereto the local legislative  body  for the  tax  district  shall  have  adopted  a  local law providing for the release or return to the insured  of  any  amounts  to  which  it  would otherwise be entitled to claim provided that the insured agrees with the tax  district in writing to restore the affected premises to the same or improved condition that it was in prior to the time  that  the  lien  of such  district  against  proceeds  provided  for  in this section arose, subject to such conditions as such resolution shall provide to guarantee performance of  such  obligation  including,  but  not  limited  to,  an agreement  to  deposit  such  proceeds  in an escrow account or that the insured shall obtain a performance bond.   5. The provisions of this section shall not be deemed or construed  to alter  or  impair  the right of a tax district to acquire or enforce any lien against real property but shall be in addition to any  other  power provided by law to acquire or enforce such right.