[HISTORY: Adopted by the City Council of the City of Oil
City as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-25-1993 by Ord. No. 2556 (Ch. 113, Art. I, of
the 1986 Code)]
The City Treasurer or such official's designee is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties stated herein.
[Added 5-22-1995 by Ord. No. 2587]
As used in this article, the following terms shall have the
meanings indicated:
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 City of Oil City under any applicable
law.
[Amended 5-22-1995 by Ord. No. 2587]
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 the City of Oil City (hereinafter sometimes designated
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 Treasurer with a municipal
certificate pursuant to Section 508(b) of Act 98 of 1992 and unless
there is compliance with Section 508(c) and (d) of Act 98 of 1992[1] and the provisions of this article.
[1]
See 40 P.S. § 638 et seq.
A.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Treasurer
issues a certificate indicating that there are no delinquent taxes,
assessments, penalties or user charges against real property, or pursuant
to Section 508(b)(1)(ii) of Act 98 of 1992,[1] that all delinquent taxes, assessments, penalties or user
charges have been paid after proper notification and certification
by the Treasurer, then the issuing agent shall pay the claim of the
named insured; provided, however, that if the loss is 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 followed:
(1)
The named insured shall determine which of the following two options
she/he shall proceed with to meet the escrowing requirements of Section
508(c) of Act 98 of 1992:
(a)
The insuring agent shall transfer from the insurance proceeds
to the Treasurer of the City of Oil City in the aggregate $2,000 for
each $15,000 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 City shall be $2,000.
[Amended 5-22-1995 by Ord. No. 2587]
(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 City from the insurance proceeds the amount specified
in the estimate.
(2)
The transfer or proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(3)
In the event that the transfer of the proceeds in Subsection A(1)(a) above has occurred, 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 Treasurer shall return the amount of the funds transferred to the City in excess of the estimate to the named insured, if the City has not commenced to remove, repair or secure the building or other structure.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
B.
Upon receipt of proceeds under this section, the City shall do the
following:
(1)
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 may be incurred by the
City. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the City 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 Treasurer 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 the
City 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 City and the required proof of such completion received
by the Treasurer, and if the City has not incurred any costs for repairs,
removal or securing, the fund shall be returned to the named insured.
If the City has incurred costs for repairs, removal or securing the
building or other structure, the costs shall be paid from the fund
and, if excess funds remain, the City shall transfer the remaining
funds to the named insured; and
(4)
To the extent that interest is earned on proceeds held by the City
pursuant to this section and not returned to the named insured, such
interest shall belong to the City. 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.
C.
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency. Furthermore, nothing in this section
shall be construed to prohibit the City or its named representative
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 Council of the City of Oil City may by resolution adopt
procedures and regulations to implement 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 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 et seq.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation.
