§ 2-71.3. Payment to mortgagee.

a. 

Notwithstanding the provision of subsection 2-71.1, an insurance company may pay proceeds of a fire insurance policy to a mortgagee of fire-damaged real property where the fire insurance policy, at the time of the loss, listed the mortgagee as a named insured, provided that the payment may not be in an amount which exceeds that due and payable to the mortgagee under the mortgagee contract.

b. 

Any claim on behalf of the Township may in accordance with the provisions of this section and P.L. 1978, c. 184,

N.J.S.A. 17:36-8 to 36-13.

shall be paramount to any other claims on the proceeds of the fire insurance policy, except the claim of a holder of a mortgage on the fire-damaged property, where the fire insurance policy at the time of the loss listed the mortgagee, as a named insured, in which event the claim of the mortgagee to the proceeds shall be paramount to the municipal lien only to the extent of the amount due and payable to the mortgagee under the mortgage contract.

Ord. No. 0-1-81; 1967 Code § 27A-3