City of Butler, PA
Butler County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Butler: Art. I, 3-2-1995 as Ord. No. 1407; Art. II, 3-2-1995 as Ord. No. 1408. Amendments noted where applicable.]
[Adopted 3-2-1995 as Ord. No. 1407]

§ 158-1 Designated officer.

The Treasurer or such official's designee (hereinafter, the "municipal officer") is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties of the municipality stated herein.

§ 158-2 Definitions.

As used in this Article, the following terms shall have the meanings indicated:
FIRE LOSS OR CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered under a policy of fire insurance, including any endorsements or riders to the policy.

§ 158-3 Certificate required prior to payment of claim.

No insurance company, association or exchange (hereinafter the "insurer") doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within the City of Butler (hereinafter the "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds seven thousand five hundred dollars ($7,500.), unless the insurer and the named insured comply with the provisions of Section 508 (b) of Act 98 of 1992[1] and the provisions of this Article and Article II relating to escrow procedure for fire insurance.
[1]
Editor's Note: See 40 P.S. § 638(b).

§ 158-4 Procedure for payment of claims.

A. 
The Municipal Officer shall, upon the written request of the named insured specifying the tax description of the property, name and address of the insurer and the date agreed upon by the insurer and the named insured as the date of the receipt of a loss report of the claim, furnish the insurer either of the following within fourteen (14) working days of the request:
(1) 
A certificate, or at the discretion of the municipality, a verbal notification which shall be confirmed, in writing, by the insurer to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the municipal officer's certificate or verbal notification, the municipality has not certified any amount as total costs incurred by the municipality for the removal, repair or securing of a building or other structure on the property; or
(2) 
A certificate and bill showing the amount of delinquent taxes, assessments, penalties and use charges against the property as of the date specified in the request that have not been paid as of the date of the certificate and also showing, as of the date of the municipal officer's certificate, the amount of the total costs, if any, certified to the municipal officer that have been incurred by the municipality for the removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, the municipality shall provide to the municipal officer the total amount, if any, of such costs, if available, or the amount of costs known to the municipality at the time of the municipal officer's certificate.
B. 
A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by the municipality under applicable law.
C. 
Upon the receipt of a certificate pursuant to Subsection A(1) of this Article and upon compliance with Article II (relating to escrows for fire insurance claims) the insurer shall pay the claim of the named insured in accordance with the policy terms.
D. 
Upon the receipt of a certificate and bill pursuant to Subsection B the insurer shall return the bill to the Municipal Officer and transfer to the Municipal Officer an amount from the insurance proceeds and costs as shown on the bill or the full amount of the insurance proceeds, whichever is the lesser amount. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
E. 
Nothing in this section shall be construed to limit the ability of the municipality to recover any deficiency.

§ 158-5 Transfer of proceeds to municipal officer.

The transfer of proceeds to the Municipal Officer shall be on a pro rata basis by all insurers with applicable policies of insurance providing protection for the fire loss.

§ 158-6 Adoption of procedures and regulations.

The Mayor and Council of the City of Butler may by resolution adopt procedures and regulations to implement Section 508 of Act 98 of 1992[1] and this Article and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Section 508 of Act 98 of 1992 and this Article, including but not limited to issuance of certificates and bills.
[1]
Editor's Note: See 40 P.S. § 638.

§ 158-7 Violations and penalties. [1]

Any owner of property and named insured or any insurer who violates any of the provisions of this Article shall, upon conviction before a District Justice, be subject to a fine of not more than three hundred dollars ($300.), plus costs of prosecution and, in default of payment of such fine and costs, shall be subject to imprisonment for not more than thirty (30) days.
[1]
Editor's Note: Amended at time of adoption of Code; see Ch. 1, General Provisions, Art. I.
[Adopted 3-2-1995 as Ord. No. 1408]

§ 158-8 Designated officer.

The Treasurer or such official's designee (hereinafter, the "municipal officer") is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties of the municipality stated herein.

§ 158-9 Definitions.

As used in this Article, the following terms shall have the meanings indicated:
FIRE LOSS OR CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered under a policy of fire insurance, including any endorsements or riders to the policy.

§ 158-10 Certificate required prior to payment of claim.

No insurance company, association or exchange (hereinafter the "insurer") doing business in the Commonwealth of Pennsylvania shall pay a claim or a named insured for fire damage to a structure located within the City of Butler (hereinafter the "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds seven thousand five hundred dollars ($7,500.), unless the insurer is furnished by the municipal officer with a municipal certificate pursuant to Section 508 (b) of Act 98 of 1992[1] and unless there is compliance with Section 508(c) and (d) of Act 98 of 1992[2] and the provisions of this Article.
[1]
Editor's Note: See 40 P.S. § 638(b).
[2]
Editor's Note: See 40 P.S. § 638(c) and (d).

§ 158-11 Procedure for payment of claims.

After full compliance with the requirements of Section 508 (b)(1)(i) of Act 98 of 1992[1] and Article I (involving the payment of delinquent taxes from fire insurance proceeds), the insurer shall pay the claim of the named insured; provided, however, that if the loss is agreed upon by the named insured and the insurer equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building structure, the following procedures shall be followed:
A. 
The insurer shall transfer from the insurance proceeds to the municipal officer for the aggregate of two thousand dollars ($2,000.) for each fifteen thousand dollars ($15,000.) of a claim and for each fraction of that amount of a claim, provided that this section is to be applied such that if the claim is fifteen thousand dollars ($15,000.) or less, the amount transferred to the municipality shall be two thousand dollars ($2,000.); and that, if at the time of a loss report the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the foregoing transfer formula, the insurer shall transfer to the municipality from the insurance proceeds the amount based upon the estimate.
B. 
The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring by building or other structure. Policy proceeds remaining after the transfer to the municipality shall be disbursed in accordance with the policy terms.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).

§ 158-12 Contractor's estimate; return of excess funds.

After the transfer, the named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, and the designated officer shall return the amount of the funds transferred to the municipality in excess of the estimate to the named insured, if the municipality has not commenced to remove, repair or secure the building or other structure.

§ 158-13 Action by city upon receipt of proceeds.

Upon receipt of proceeds under this § 158-11, the municipality shall do the following:
A. 
The municipal officer shall place the proceeds in the separate fund to be used solely as security against the total cost of removing, repairing or securing the building or structure which is incurred by the municipality. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the municipality in connection with such removal, repair or securing of the building or any proceedings related thereto.
B. 
It is the obligation of the insurer when transferring the proceeds to provide the municipality with the name and address of the named insured. Upon receipt of the transferred funds and the name and address of the named insured, the municipal officer shall contact the named insured, certify that the proceeds have been received by the municipality and notify the named insured that the procedures under this subsection shall be followed.
C. 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the municipality and the required proof of such completion received by the municipal officer, and if the municipality has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the municipality has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund and, if excess funds remain, the municipality shall transfer the remaining funds to the named insured.
D. 
To the extent that interest is earned on proceeds held by the municipality pursuant to this section, and retained by it, such interest shall belong to the municipality. To the extent that proceeds are returned to the named insured, interest earned on such proceeds shall be distributed to the named insured at the time that the proceeds are returned.
E. 
Nothing in this section shall be construed to limit the ability of the municipality to recover any deficiency. Furthermore, nothing in this Article shall be construed to prohibit the municipality and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.

§ 158-14 Adoption of procedures and regulations.

The Mayor and Council of the City of Butler may by resolution adopt procedures and regulations to implement Section 508 of Act 98 of 1992[1] and this Article and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Section 508 of Act 98 of 1992 and this Article, including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.

§ 158-15 Violations and penalties. [1]

Any owner of property and named insured or any insurer who violates any of the provisions of this Article shall, upon conviction before a District Justice, be subject to a fine of not more than three hundred dollars ($300.), plus costs of prosecution and, in default of payment of such fine and costs, shall be subject to imprisonment for not more than thirty (30) days.
[1]
Editor's Note: Amended at time of adoption of Code; see Ch. 1, General Provisions, Art. I.