The Borough of Punxsutawney Code Enforcement Officer 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 "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim of a
named insured for fire damage to a structure located with the Borough of Punxsutawney
where the amount recoverable for the fire loss to the structure under all
policies exceeds $7,500, unless the insurer is furnished by the Borough Treasurer
with a certificate pursuant to Subsection 508(b) of the Insurance Company
Law of 1921, as amended by Act 98 of 1992 and Act 93 of 1994 (collectively,
the "Act"), and unless there is compliance with the procedures set forth in
Subsection 508(c) and (d) of the Act.
When all municipal claims and municipal expenses have been paid pursuant to §
125-3 of this chapter, or where the Treasurer has issued a certificate described in §
125-3A indicating that there are no municipal claims or municipal expenses against the property, 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 fire policies covering the building or structure, the following procedures must be followed:
A. The insurer shall transfer from the insurance proceeds
to the Treasurer, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
B. If at the time a loss report is submitted by the insured,
such insured has submitted to the insurer, with a copy to the Borough, a contractor's
signed estimate of the cost 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 Treasurer from
the insurance proceeds the amount specified in the estimate. If there is more
than one insurer, the transfer of proceeds shall be on a pro rata basis by
all insurers insuring the building or other structure.
C. Upon receipt of the above-described portion of the insurance
proceeds, the Treasurer shall do the following:
(1) Place the proceeds in a separate fund to be used solely
as security against the total municipal expenses anticipated by the Borough
to be required in removing, repairing or securing the building or structure
as required by this chapter. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Borough in
connection with such removal, repair or securing or any proceedings related
thereto; and
(2) Mail to the named insured, at the address received from
the insurer, a notice the proceeds have been received by the Borough and that
the procedures under this subsection shall be followed.
(3) After the transfer, the named insured may submit to the
Borough a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable, return
to the insured the amount of funds transferred to the Borough in excess of
that required to pay the municipal expenses, provided the Borough has not
commenced to remove, repair or secure the building or other structure, in
which case the Borough will complete the work.
(4) Pay to the Code Enforcement Officer, for reimbursement
to the Borough general fund, the amount of the municipal expenses paid by
the Borough.
(5) Pay the remaining balance in the fund (without interest)
to the named insured upon receipt of a certificate issued by the Code Enforcement
Officer that the repair, removal or securing of the building or other structure
has been completed in accordance with all applicable codes and regulations
of the Borough.
(6) Nothing in this section shall be construed to limit the
ability of the Borough to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this chapter, or to insurance
proceeds, by an action at law or in equity, to enforce the codes of the Borough
or to enter into an agreement with the named insured with regard to such other
disposition of the proceeds as the Borough may deem responsible.
Nothing in this chapter shall be construed to make an insurance company,
association or exchange liable for any amount in excess of proceeds payable
under its insurance policy or for any other act performed pursuant to this
chapter or to make this Borough, any Borough official, a municipality or public
official an insured under a policy of insurance or to create an obligation
to pay delinquent property taxes or unpaid removal liens or expenses other
than as provided in this chapter.
An insurance company, association or exchange making payment of policy
proceeds under this chapter for delinquent taxes or structure removal liens
or removal expenses incurred by the Borough shall have full benefit of such
payment including all rights of subrogation and of assignment.
This chapter shall be liberally construed to accomplish its purpose
to deter the commission of arson and related crimes, to discourage the abandonment
of property and to prevent urban blight and deterioration.
The Secretary of the Borough shall transmit a certified copy of all
transactions completed according to the provisions herein promptly to the
Pennsylvania Department of Community Affairs.
Any owner of any property and named insured or insurer of any person,
firm or corporation who shall violate any provision of this chapter or who
shall fail to comply with any of the requirements hereof, upon conviction
thereof in an action brought before the District Justice in the manner provided
for the enforcement of summary offenses under the Pennsylvania Rules of Criminal
Procedure, shall be sentenced to pay a fine of not less than $200 and 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 90 days. Each day that a violation
of this chapter continues or each section of this chapter which shall be found
to have been violated shall constitute a separate offense.