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This entry was published on 2017-10-27
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Claims against fire insurance proceeds; procedure
General Municipal (GMU) CHAPTER 24, ARTICLE 2
§ 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

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.