[HISTORY: Adopted by the Borough Council of the Borough of Millvale as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-10-2013 by Ord. No. 2562]
The Borough of Millvale Manager/Secretary or such official's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
No insurance company, association or exchange (hereinafter "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 the Borough of Millvale (hereinafter the "Borough") 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 Borough Manager/Secretary with a municipal certificate pursuant to Section 508(b) of the Insurance Company Law of 1921,[1] as amended by Act 98 of 1992 and Act 93 of 1994 (hereinafter the "Law"), indicating that there are no delinquent taxes or other charges against the property, and unless there is compliance with Section 508(c) and (d) of the Law and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b).
Where, pursuant to Section 508(b) of the Law, the Borough Manager/Secretary issues a certificate indicating in writing 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 other structure, the following procedures must be followed:
A. 
The insuring agent shall transfer from the insurance proceeds to the Borough Manager/Secretary, in the aggregate, $2,000 for each $15,000 of a claim and each fraction of that amount of a claim, this section to be applied such that if the claim is $15,000 or less, the amount transferred to the municipality shall be $2,000.
B. 
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 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 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 Borough Manager/Secretary 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 do the following:
(1) 
The Borough Manager/Secretary 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 Borough Manager/Secretary shall contact the named insured, certify that the Borough has received the proceeds and notify the named insured that the procedures under this subsection shall be followed.
(3) 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Borough and the required proof of such completion received by the designated officer, and if the Borough has not incurred any costs for repairs, removal or securing, 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.
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 Millvale may, by resolution, adopt procedures and regulations to implement Act 93 of 1994 and this section and may, by resolution, fix reasonable fees to be charged for Borough activities or services provided pursuant to Act 93 of 1994 and this chapter, including but not limited to issuance of certificates and bills, performance of inspection, and opening separate fund accounts.
Any person who violates or permits a violation of this chapter shall, upon conviction in a summary proceeding brought before a Magisterial District Judge under the Pennsylvania Rules of Criminal Procedure, be guilty of a summary offense and shall be punishable by a fine of not more than $1,000, plus costs of prosecution. In default of payment thereof, the defendant may be sentenced to imprisonment for a term not exceeding 90 days. Each day or portion thereof that such violation continues or is permitted to continue shall constitute a separate offense, and each section of this chapter that is violated shall also constitute a separate offense.
Following adoption of this article, an exact copy of this article, together with the name and telephone number of the Borough Manager/Secretary, shall be filed with the Governor's Center for Local Government Services.