The Borough Secretary, or his or her designated representative, is hereby
appointed as the Borough's officer authorized to enforce all of the provisions
of this article and all rules, procedures and regulations adopted under authority
of this article.
No insurer, including, without limitation, an insurance company, association
or exchange (hereinafter collectively referred to as the "insuring agent"),
doing business in the Commonwealth of Pennsylvania, shall pay a claim of its
named insured for fire damage to a structure located within the Borough where
the amount recoverable for the fire loss to the structure under all policies
applicable to the said loss exceeds the sum of $7,500, unless the named insured
or the insuring agent is furnished by the Borough with a municipal certificate
pursuant to Section 508(b) of Act 98 of 1992, and unless there is compliance
with Sections 508(c) and 508(d) of such Act and with the provisions of this
article.[1]
[1]
Editor's Note: See 40 P.S. § 638 et seq.
A.
Where, pursuant to Section 508(b)(1)(ii) of Act 98 of
1992, the Borough issues a certificate and bill showing the amount of delinquent
taxes, assessments, penalties and user charges against the property and the
amount of the total costs, if any, certified to have been incurred by the
Borough for the removal, repair or securing of the building, structure or
property, all as more specifically set forth in Section 508(b)(1)(ii) of the
Act, the insuring agent shall, in accordance with Section 508(b)(2)(ii) of
the Act, transfer to the Borough's designated officer an amount from
the proceeds necessary to pay the taxes, assessments, penalties, charges and
costs as shown on the bill.
B.
Where, pursuant to Section 508(b)(1)(i) of the Act, as
amended, the Borough issues 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 which is
the subject of the fire damage, the insuring agent shall 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 sixty percent of the
aggregate limits of liability on all fire policies covering the property that
is the subject of the fire damage, the following procedures must be followed
and satisfied:
(1)
The insuring agent shall transfer from the insurance
proceeds to the Borough's designated officer in the aggregate of $2,000
for each $15,000 of a claim and for each fraction of that amount of a claim,
such that if the claim is $15,000 or less, the amount transferred to the Borough
shall be $2,000.
(2)
If, at the time a proof of loss has been agreed to between
the named insured and the insuring agent, the named insured has submitted
a contractor's signed estimate of the cost of removing, repairing or
securing the building or other structure in an amount less than the amount
calculated under paragraph (a)(1) hereof, the insuring agent shall transfer
to the Borough from the insurance proceeds the amount specified in the signed
estimate.
(3)
The transfer of proceeds from the insuring agent to the
Borough shall be on a pro rata basis by all insuring agents insuring the property
that is the subject of the fire damage.
(4)
After the transfer of the funds set forth above, the
named insured may submit a contractor's signed estimate of the cost of
removing, repairing or securing the building or other structure, and the Borough's
designated officer shall return to the named insured the amount of the funds
transferred to the Borough in excess of the signed estimate submitted to the
named insured by the contractor, provided that the Borough has not commenced
to remove, repair or secure the building, property or other structure that
is the subject of the fire damage.
(5)
Upon the Borough's receipt of the proceeds of insurance
authorized under this article, the Borough shall do the following:
(a)
The designated officer shall place the proceeds received
by the Borough in a separate fund to be used by the Borough solely as security
against the total cost of removing, repairing or securing the building, structure
or property that is the subject of the fire damage, which cost may be, has
been or is being incurred by the Borough. The Borough shall be entitled to
recover such costs, including, but not limited to, reasonable and necessary
engineering, legal or administrative costs incurred by the Borough in connection
with the removal, repair or securing of the building, structure or real property
that is the subject of the fire damage.
(b)
As mandated under Act 98 of 1992, it shall be the obligation
of the insuring agent, when transferring to the Borough the funds as required
by this article, to provide the Borough with the name and address of the named
insured. Upon receipt of the said transferred funds by the Borough together
with the name and address of the named insured, the Borough, through its designated
officer, shall contact the named insured, certify that the proceeds have been
received by the Borough and notify the said named insured that the procedures
under this article shall be followed.
(c)
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 has been
received by the Borough's designated officer, provided that the said
Borough has not incurred any cost for such repair, removal or securing, then
the said funds shall be returned by the Borough to the named insured. However,
if the Borough has incurred any cost for repair, removal or securing of the
building, structure or real property, the cost so incurred shall be paid to
the Borough from the fund, and any excess funds remaining, if any, shall be
transferred by the Borough to the named insured.
(d)
To the extent that any interest is earned on proceeds
held by the Borough pursuant to this article, and there are no excess funds
to be returned by the Borough to the named insured, then such interest shall
belong to and be the property of the Borough. To the extent that any proceeds
are returned to the named insured, interest on only that portion of the funds
returned shall be distributed to the named insured at the time that the proceeds
are returned.
As authorized by Act 98 of 1992,[1] nothing in this article shall be construed to limit the ability
of the Borough to recover any deficiency that may exist in its favor over
and above the said transferred funds or proceeds paid to it by the insuring
agent, Further, nothing in this article 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.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
A.
The Borough hereby reserves the right to adopt any reasonable
and necessary rules, procedures and regulations to implement Act 98 of 1992.
B.
Council hereby further reserves the right to adopt by
resolution reasonable fees to be charged by the Borough for such services
or activities required by it under Act 98 of 1992 and this article. The Borough
shall be entitled to set reasonable fees for the issuance of certificates,
the performance of required inspections and the opening, establishment and
management of any separate fund accounts required herein.
In accordance with Section 508(k) of Act 98 of 1992, the Borough intends
that this article and the Act be liberally construed to accomplish the stated
purpose of the Commonwealth of Pennsylvania in adopting the Act, namely to
deter the commission of arson and related crimes, to discourage the abandonment
of property and to prevent urban blight and deterioration.
Upon adoption of this article, the proper officials of the Borough are
hereby authorized and required to file with the Department of Community Affairs
an exact copy of this article, as amended, so adopted and to certify therein
the name, position and telephone number of the Municipal official designated
as the Borough officer authorized to carry out all responsibilities and duties
provided for herein. In accordance with Act 93 of 1994,[1] a copy of this article, as amended, shall be filed with the Governor's
Center for Local Government Services.
[1]
Editor's Note: See 40 P.S. § 638 et seq.