[HISTORY: Adopted by the Borough Council
of the Borough of New Freedom as indicated in article histories. Amendments
noted where applicable.]
[Adopted 5-10-1993 by Ord. No. 1993-11 (Ch. 10, Part 4, of the 1983 Code of Ordinances)]
The Treasurer of New Freedom Borough, or Assistant
Treasurer, is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties 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 fire damage
to a structure located within New Freedom Borough (hereinafter the
"municipality") where the amount recoverable for the fire loss to
the structure under all policies exceeds $7,500, unless the named
insured or insuring agent is furnished by the Borough Treasurer with
a municipal certificate pursuant to Section 508(B) as set forth in
Section 1 of Act 98 of 1992 and Section 508(C) and (D), as set forth
in Section 1 of Act 98 of 1992.[2]
Section 508(b)(1)(I), as set forth in Section
1 of Act 98 of 1992. The Borough Treasurer issues a certificate indicating
that there are no delinquent taxes, assessments, penalties or user
charges against real property, 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 60%
of the aggregate limits of liability on all fire policies covering
the building or structure, the following procedures must be adhered
to:
A.Â
The insuring agent shall transfer from the insurance
proceeds to the Treasurer of New Freedom 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 to be applied such that if the
claim is $15,000 or less, the amount transferred to the Borough shall
be $2,000.[1]
B.Â
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 New Freedom Borough from the insurance proceeds the amount
specified in the estimate.
C.Â
The transfer of proceeds shall be on pro rata basis
by all companies, associations or exchanges insuring the building
or structure.
D.Â
After the transfer, 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 Treasurer shall
return the amount of the funds transferred to New Freedom Borough
in excess of the estimate to the named insured, if the Borough has
not commenced to repair, remove or secure the building or other structure.
E.Â
Upon receipt of proceeds under this section, New Freedom
Borough shall do the following:
(1)Â
The Treasurer 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 New Freedom 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 proceeds related thereto.
(2)Â
It is the obligation of the insuring agent when transferring
the proceeds to provide New Freedom 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 Treasurer shall contact
the named insured, certify that the proceeds have been received by
New Freedom Borough and notify the named insured that the procedures
under this subsection shall be followed.
(3)Â
When repairs, removal or securing of the building
or structure have been completed in accordance with all applicable
regulations and orders of New Freedom Borough and the required proof
of such completion received by the Treasurer, and if New Freedom Borough
has not incurred any costs for repairs, removal or securing of the
building or structure, the costs shall be paid from the fund and,
if excess funds remain, New Freedom Borough shall transfer the remaining
funds to the named insured.
(4)Â
To the extent that interest is earned on proceeds
held by New Freedom 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.Â
Nothing in this section shall be constructed to limit
the ability of New Freedom Borough to recover any deficiency. Furthermore,
nothing in this subsection shall be constructed to prohibit New Freedom
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 damage property has been negotiated.
The Council of New Freedom may by resolution
adopt procedures and regulations to implement 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.
