[HISTORY: Adopted by the Board of Supervisors of the Township of
North Coventry as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-14-1992 by Ord. No. 99]
The Township Manager of North Coventry Township 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 the "insuring
agent") doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to structure located within North Coventry
Township (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 and unless
there is compliance with Section 508(C) and (D) of Act 98 of 1992 and the
provisions of this article.
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992, 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 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 restructure, the following procedures must be followed:
A.
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[1]
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 in an amount less than the amount calculated under the
foregoing transfer formula, the insuring agent shall transfer to the Municipality
from the insurance proceeds the amount specified in the estimate.[2]
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 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.
E.
Upon receipt of proceeds under this section, the Municipality
shall do the following:
(1)
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; and
(2)
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;
and
(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 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
(4)
To the extend 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.
F.
Nothing in this section shall be construed to limit the
ability of the Municipality to recover any deficiency. Furthermore, nothing
in this subsection 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 of some other reasonable disposition of the damaged
property has been negotiated.
The North Coventry Township Board of Supervisors 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 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.
Any person who violates or permits a violation of this article shall,
upon being found liable therefor in a civil enforcement proceeding commenced
by the Township before a Magisterial District Judge, pay a fine of not more
than $600, plus all court costs, including reasonable attorney's fees, incurred
by the Township in the enforcement of this article. No judgment shall be imposed
until the date of the determination of the violation by the Magisterial District
Judge. If the defendant neither pays nor timely appeals the judgment, the
Township may enforce the judgment pursuant to the applicable Rules of Civil
Procedure. Each day a violation exists shall constitute a separate offense.
Further, the appropriate officers or agents of the Township are hereby authorized
to seek equitable relief, including injunction, to enforce compliance herewith.
