SB 69-LOCAL – AS AMENDED BY THE SENATE
03/24/05 0640s
2005 SESSION
01/10
SENATE BILL 69-LOCAL
AN ACT relative to certain insurance liens.
SPONSORS: Sen. Gallus, Dist 1; Sen. Clegg, Dist 14; Sen. Green, Dist 6; Sen. Kenney, Dist 3; Rep. Buzzell, Coos 4; Rep. Lary, Coos 3; Rep. Mears, Coos 4; Rep. Morneau, Coos 4; Rep. Theberge, Coos 4
COMMITTEE: Banks and Insurance
This bill allows municipalities to place a lien on any insurance proceeds received by a mortgagee if the mortgagee’s building is damaged and the mortgagee does not rebuild or demolish the building.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/24/05 0640s
05-0369
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to certain insurance liens.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Liens for Buildings Damaged by Fire. Amend RSA 155-B by inserting after section 2 the following new section:
155-B:2-a Municipal Lien on Owner’s Interest in Property Insurance Proceeds. A municipality may assert a lien on a real property owner’s interest in any property insurance proceeds that are payable as a result of the damage or destruction of that property owner’s real property located in the municipality. The municipal lien shall be subordinate to any lienholder of record, and to any right, title, or interest in such property insurance proceeds in favor of any lender holding a mortgage on such real property and who was named as an additional insured or loss payee, by means of loss payable endorsement or otherwise, on any policy of insurance insuring such real property. The insurer’s obligations under this section shall commence upon its receipt of actual written notice from the municipality, a copy of which shall be sent by the municipality to the insured, and shall apply only to insurance proceeds held by the insurer as of that date and due to be paid to the owner. The lien shall be for the purpose of reimbursing the municipality for all costs permitted to be recovered by it under this chapter if the municipality elects to demolish and cleanup the property. The property owner shall, within 72 hours of the receipt of a written request by the municipality, provide the municipality with the names, addresses, agents, and policy numbers of all insurance companies which have provided the property owner with insurance on the property. The lien shall automatically expire if the owner rebuilds or demolishes the real property in the manner required by this chapter.
2 Effective Date. This act shall take effect 60 days after its passage.