N.Y. General Municipal Law § 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.