[Adopted 4-12-1999 by Ord.
No. 6-1999]
The Borough Secretary, or such official as the Borough Council may designate
("designated official"), is hereby appointed as the designated official who
is authorized to carry out all responsibilities and duties stated herein.
No insurance company, association or exchange (hereinafter, the "insuring
agent") doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for the fire damage to a structure located within the Borough
of Ingram where the amount recoverable for the fire loss to the structure
under all policies exceeds $7,500, unless the insuring agent is furnished
by the designated official with a Borough certificate pursuant to Act 98 of
1992, as amended, and unless there is compliance with Act 98 of 1992,
as amended, and the provisions of this part.
Where, pursuant to Act 98 of 1992, as amended, the designated official
issues a certificate indicating that there are no delinquent taxes, assessments,
penalties or user charges against real property, the insuring agent may pay
the claim of the named insured; provided, however, that if the loss agreed
upon by the named insured and the insuring agent equals or exceeds 60% of
the aggregate limits of liability on all fire policies covering the building
restructure, the following procedures must be followed pursuant to Act 98
of 1992, as amended:
A. The insuring agent shall transfer from the insurance
proceeds to the designated official of the Borough in the aggregate of $2,000
for each $15,000 of a claim and for each fraction of that amount of a claim;
this subsection is to be applied such that if the claim is $15,000 or less,
the amount transferred to the Borough shall be $2,000.
B. If at the time of a proof of loss agreed to between the
named insured and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure, the insuring agent shall transfer to the Borough from
the insurance proceeds the amount specified in the estimate.
C. The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure.
D. 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 official shall return the amount of
the funds transferred to the Borough in excess of the estimate to the named
insured, if the Borough has not commenced to remove, repair or secure the
building or other structure.
E. Upon receipt of proceeds under this section, the Borough
shall perform the following:
(1) The designated official shall place the proceeds in a
separate fund to be used solely as security against the total costs of removing,
repairing or securing the building or structure, which are incurred by the
Borough. Such costs shall include, without limitation, any engineering, legal
or administrative costs incurred by the Borough in connection with such removal,
repair or securing of the building or any proceedings related thereto.
(2) It is the obligation of the insuring agent when transferring
the proceeds to provide the Borough 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 designated official shall contact the named insured,
certify that the proceeds have been received by the Borough, and notify the
named insured that the procedures under this subsection shall be followed.
(3) When repair, removal or securing of the building or other
structure has been completed in accordance with all applicable regulations
and orders of the Borough, and the required proof of such completion received
by the designated official, and if the Borough has not incurred any costs
for repair, removal or securing of the building or other structure, the fund
shall be returned to the named insured. If the Borough has incurred costs
for repair, removal or securing of the building or other structure, the costs
shall be paid from the fund, and if excess funds remain, the Borough shall
transfer the remaining funds to the named insured.
(4) To the extent that interest is earned on proceeds held
by the Borough pursuant to this section and not returned to the named insured,
such interest shall belong to the Borough. 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.
F. Nothing in this section shall be construed to limit the
ability of the Borough to recover any deficiency. Furthermore, nothing in
this subsection shall be construed to prohibit the Borough 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.
The Borough of Ingram may, by resolution, adopt procedures and regulations
to implement Act 98 of 1992, as amended, and this article and may, by resolution,
fix reasonable fees to be charged for municipal activities or services provided
pursuant to Act 98 of 1992, as amended, and this article, including but not
limited to issuance of certificates and bills, performance of inspections
and opening separate fund accounts. Said fees shall be the responsibility
of the named insured.