§ 22 — Claims against fire insurance proceeds; procedure

§ 22. Claims against fire insurance proceeds; procedure. 1. As used in\nthis section, any inconsistent provision of law notwithstanding, the\nfollowing terms shall have the following meanings:\n (a) "Enforcing officer" means the elected or appointed officer of any\ntax district charged by law with the duty to enforce the collection of\ntax liens on real property.\n (b) "Governing body" means the legislative body for the tax district.\n (c) "Lien" means an unpaid tax, special ad valorem levy, special\nassessment or other charge imposed upon real property by or on behalf of\na municipal corporation or special district which is an encumbrance on\nreal property, whether or not evidenced by a written instrument, and\nprovided that one such tax, levy, assessment or other charge has\nremained undischarged for a period of one year or more.\n (d) "Municipal corporation" means a county, city, town, village or\nschool district.\n (e) "Real property" means property upon which there is erected any\nresidential, commercial or industrial building or structure except an\nowner-occupied single family residential structure and owner-occupied\ntwo family residential structures.\n (f) "Tax district" means a county, city, town or village having the\npower to enforce the collection of taxes, special ad valorem levies,\nspecial assessments or other charges imposed upon real property by or on\nbehalf of a municipal corporation or special district.\n 2. Every tax district is hereby authorized and empowered to claim\nagainst the proceeds of a policy of fire insurance insuring the interest\nof an owner and issued on real property located therein to the extent of\nany lien thereon which claim, when made and perfected in the manner\nprovided in this section, shall further constitute a lien against such\nproceeds and which shall, as to such proceeds, be prior to all other\nliens and claims except the claim of a mortgagee of record named in such\npolicy.\n 3. Upon the adoption of a resolution by the governing body providing\ntherefor, the enforcing officer of the tax district shall cause a notice\nof intention to claim against proceeds to be served upon the state\nsuperintendent of financial services for entry in the index of tax\ndistricts maintained by him as provided in section three hundred\nthirty-one of the insurance law. Thereafter the enforcing officer shall\nrender to any insurer the certificate required and in the manner\nprescribed by such section and the amounts stated in such certificate\nshall be a lien on the proceeds of the insurance policy until paid.\n 4. No resolution adopted as provided for in subdivision three hereof\nshall be effective unless prior thereto the local legislative body for\nthe tax district shall have adopted a local law providing for the\nrelease or return to the insured of any amounts to which it would\notherwise be entitled to claim provided that the insured agrees with the\ntax district in writing to restore the affected premises to the same or\nimproved condition that it was in prior to the time that the lien of\nsuch district against proceeds provided for in this section arose,\nsubject to such conditions as such resolution shall provide to guarantee\nperformance of such obligation including, but not limited to, an\nagreement to deposit such proceeds in an escrow account or that the\ninsured shall obtain a performance bond.\n 5. The provisions of this section shall not be deemed or construed to\nalter or impair the right of a tax district to acquire or enforce any\nlien against real property but shall be in addition to any other power\nprovided by law to acquire or enforce such right.\n