2023 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.