No insurer shall pay a fire loss claim of a named insured, unless the insurer and the named insured comply with the provisions of this chapter.
A. 
No insurer doing business in the Commonwealth of Pennsylvania shall pay a fire loss claim of a named insured unless the insurer and the named insured comply with the provisions of this chapter.
B. 
The Municipal Officer shall, upon the written request of the named insured specifying the tax description of the property, name and address of the insurer and the date agreed upon by the insurer and the named insured as the date of the receipt of a loss report of the claim, furnish the insurer either of the following within 14 working days of the request:
(1) 
A certificate or, at the discretion of the Borough of Carlisle, a verbal notification which shall be confirmed in writing by the insurer to the effect that, as of the date specified in the request, that, as of the date of the Municipal Officer's certificate or verbal notification, the Borough of Carlisle has not certified any amount as total costs incurred by the Borough for the removal, repair or securing of a building or other structure on the property.
(2) 
A certificate and bill showing the amount as of the date specified in the request that, as of the date of the Municipal Officer's certificate, the amount of the total costs, if any, certified to the Municipal Officer that have been incurred by the Borough of Carlisle for the removal, repair or securing of a building or other structure on the property. For the purposes of this clause, the Borough of Carlisle shall provide to the Municipal Officer the total amount, if any, of such costs, if available, or the amount of costs known to the Borough at the time of the Municipal Officer's certificate.
After full compliance with the requirements of § 126-8 of this chapter, the insurer shall pay the claim of the named insured, provided however, that if the loss agreed upon by the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all applicable fire policies, the following procedures shall be followed:
A. 
The insurer shall transfer from the insurance proceeds to the Municipal Officer the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, provided:
(1) 
This section is to be applied such that if the claim is $15,000 or less, the amount transferred to the Borough of Carlisle shall be $2,000.
(2) 
That, 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 insurer shall transfer to the Borough of Carlisle from the insurance proceeds the amount based upon the estimate.
B. 
The transfer of proceeds shall be on a pro rata basis by all insurers and on all applicable policies. Policy proceeds remaining after the transfer to the Borough of Carlisle shall be disbursed in accordance with the 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 Municipal Officer shall return to the named insured the amount of the funds transferred to the Borough of Carlisle in excess of the estimate, provided that the Borough of Carlisle has not commenced to remove, repair or secure the building or other structure.
Upon the receipt of proceeds under this section, the Borough of Carlisle shall do the following:
A. 
The Municipal Officer shall place the proceeds in a separate fund to be used solely as security against the total costs which are incurred by the Borough of Carlisle for removing, repairing or securing the building or structure. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Borough of Carlisle in connection with such removal, repair or securing of the building or any proceedings related thereto.
B. 
At the time of transfer of such proceeds, the insurer shall provide the Borough of Carlisle 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 Municipal Officer shall contact the named insured, certify that the proceeds have been received by the Borough of Carlisle and notify the named insured that the procedures under this section shall be followed.
C. 
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 of Carlisle and the required proof of such completion received by the Municipal Officer and if the Borough of Carlisle has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the Borough of Carlisle 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 Borough of Carlisle shall transfer the remaining funds to the named insured.
D. 
To the extent that interest is earned on proceeds held by the Borough of Carlisle pursuant to this section, and retained by it, such interest shall belong to the Borough of Carlisle. 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 article shall be construed to limit the ability of the Borough of Carlisle to recover any deficiency. Furthermore, nothing in this article shall be construed to prohibit the Borough of Carlisle and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some reasonable disposition of the damaged property has been negotiated.
The Borough Council may, by resolution, adopt additional procedures and regulations to implement this article and may, by resolution, fix reasonable fees to be charged for Municipal activities or services provided pursuant to this article including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.