[Adopted 2-24-1993 by Ord. No. 93-5]
The Municipal 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 1-4-1995 by Ord. No. 95-2]
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 Borough
of Chambersburg (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 Municipal Treasurer
with a municipal certificate pursuant to Section 508(B) of Act 98 of 1992, as amended, and unless there is compliance with Section 508(C)
and (D) of Act 98 of 1992, as amended, and the provisions of this article.
[Amended 1-4-1995 by Ord. No. 95-2]
A. Where, pursuant to Section 508(B)(1)(I) of Act 98 of
1992, as amended, the Municipal 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 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 restructure, the following procedures
must be followed:
(1) The insuring agent shall transfer from the insurance
proceeds to the designated officer of the municipality in the aggregate of
$2,000 for each $15,000 of a claim and for 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; or
(2) 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 Subsection
A above, the insuring agent shall transfer to the municipality from the insurance proceeds the amount specified in the estimate.
(3) The transfer of proceeds shall be on pro rata basis by
all companies, associations or exchanges insuring the building or other structure.
(4) 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 designated officer shall return the amount of
the funds transferred to the municipality in excess of the estimate to the
named insured, if the municipality has not commenced to remove, repair or
secure the building or other structure.
(5) Upon receipt of proceeds under this section, the municipality
shall do the following:
(a) The designated officer shall place the proceeds in the
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
municipality. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the municipality in connection with
such removal, repair or securing of the building or any proceedings related
thereto;
(b) It is the obligation of the insuring agent when transferring
the proceeds to provide the municipality 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 designated officer shall contact the named insured,
certify that the proceeds have been received by the municipality and notify
the named insured that the procedures under this subsection shall be followed;
(c) When repairs, removal or securing of the building or
other structure has been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion received
by the designated officer, and if the municipality has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the municipality 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 municipality shall transfer the remaining
funds to the named insured; and
(d) To the extent that interest is earned on proceeds held
by the municipality pursuant to this section and not returned to the named
insured, such interest shall belong to the municipality. 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.
B. Nothing in this section shall be construed to limit the
ability of the municipality to recover any deficiency. Furthermore, nothing
in this section shall be construed to prohibit the municipality 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.
[Amended 2-4-1995 by Ord. No. 95-2]
The Borough of Chambersburg may by resolution adopt procedures and regulations
to implement Act 98 of 1992, as amended, and this article and may by resolution
fix reasonable fees to be charged for municipal activities or services pursuant
to Act 98 of 1992, as amended, and this article, including but not limited
to issuance of certificates and bills, performance of inspections and opening
separate fund accounts.
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.
In addition, the parties in violation shall be liable for the moneys otherwise
due the borough pursuant to this article.
[Amended 1-4-1995 by Ord. No. 95-2]
In accordance with Act 93 of 1994, a copy of Ordinance No. 95-2, together
with Ordinance No. 93-5, shall be filed with the Department of Community Affairs,
together with notification. The Borough Treasurer, (717) 264-5151, shall be
the official responsible for compliance with this article.