[HISTORY: Adopted by the Board of Commissioners of the Township of Hatfield as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-29-1993 by Ord. No. 415 (Ch. 1, Part 7, of the 1994 Code)]
The Township 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.
[Amended 9-25-1996 by Ord. No. 420Y]
No insurance company, association or exchange (hereinafter called 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 Hatfield Township (hereinafter called 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 Township Treasurer with a certificate pursuant to Section 508(b) of Act 98 of 1992, and unless there is compliance with Sections 508(c) and (d) of Act 98 of 1992 and the provisions of this article.
[Amended 9-25-1996 by Ord. No. 420Y]
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Township Treasurer issues a certificate or, at the discretion of Hatfield Township, a verbal notification which shall be confirmed in writing by the insurer, 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 as 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:
The insuring agent shall transfer from the insurance proceeds to the Treasurer of the Township in the aggregate of $2,000 for each $15,000 of a claim, this section to be applied such that if the claim is $15,000 or less, the amount transferred to the Township shall be $2,000.
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 Township from the insurance proceeds the amount specified in the estimate.
The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to Hatfield Township shall be disbursed in accordance with policy terms.
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 Township Treasurer shall return the amount of the funds transferred to the Township in excess of the estimate of the named insured, if the Township has not commenced to remove, repair or secure the building or other structure.
When transferring funds under this section, an insurance company, association or exchange shall provide the Township with the name and address of the named insured.
Upon receipt of the information set forth in Subsection E of this section, the Township shall contact the named insured, certify that the proceeds have been received by the Township, and notify the named insured that the procedure under this section be followed.
Upon receipt of the proceeds under this section, the Township shall do the following:
The Township 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 the Township. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Township in connection with such removal, repair or securing of the building or any proceedings related thereto.
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Township and the required proof of such completion received by the Township Treasurer, and if the Township has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the Township has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund and if excess funds remain the Township shall transfer the remaining funds to the named insured.
To the extent that interest is earned on proceeds held by the Township pursuant to this section, and not returned to the named insured, such interest shall belong to the Township. 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.
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the Township and the named insured from entering into an agreement that permits the transfer of funds to the named insured or some other reasonable disposition of the damaged property has been negotiated.
Where pursuant to Section 508(b)(1)(ii) of Act 98 of 1992, the Township Treasurer issues a certificate and bill showing the amount of delinquent taxes, assessments, penalties and users charges against the real property have not been paid as of the date of the certificate, and also showing, as of the date of the certificate, the amount of the total costs, if any, certified to the Township Treasurer that have been incurred by the Township for removal, repair or securing of a building or other structure on the real property, the insuring agent shall return the bill to the Township Treasurer and transfer to the Township Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Township, upon receipt of the amount, shall apply or credit it to the payment of the items shown on the bill. 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 Hatfield Township under applicable law.
The Township Commissioners may, by resolution, adopt procedures and regulations to implement Act 98 of 1992 and this article and may, by resolution, fix reasonable fees to be charged for Township activities or services provided pursuant to Act 98 of 1992 and this article, including, but not limited to, the issuance of certificates and bills, the performance of inspections and the opening of separate fund accounts.
It shall be the duty of the Township Treasurer to issue the certifications required under this article. However, the Township Treasurer shall only be responsible for ascertaining the amount of any and all real estate taxes due, and it shall be the duty of the Township Manager to provide the necessary information to the Township Treasurer by way of a certification as to any and all other sums of money due or required to be paid under the terms of this article or under the enabling statute, pursuant to which this article is enacted, so that only one certification will be required of the Township Treasurer in complying with the terms and provisions of this article.
[Amended 9-28-1994 by Ord. No. 420]
Any person, firm or corporation violating any provision of this article shall be subject to a fine of not more than $1,000, plus costs, and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day that a violation of this article continues shall constitute a separate offense.