[HISTORY: Adopted by the Borough Council of the Borough of New Hope
as indicated in article histories. Amendments noted where applicable.]
A.
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 within the
Borough of New Hope 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 508(b) of the Insurance
Company Law of 1921 (40 P.S. § 638) (the "Act"), and unless there
is compliance with the procedures set forth in 508(c) and (d) of the Act.
B.
Bill; certification of expenses; payment by insurer.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses which
the Borough has incurred as a cost for the removal, repair or securing of
a building or other structure on the property (collectively "municipal expenses"),
the Treasurer of the Borough of New Hope shall immediately render a bill for
such work, if he or she has not already done so.
(2)
Upon written request of the named insured specifying the tax
description of the property, the name and address of the insurer and the date
of receipt by the insurer of a loss report of the claim, the Treasurer shall
furnish, within 14 working days after the request, to the insurer, a certificate
(or at his or her discretion an oral notice confirmed in writing) either:
(a)
Stating that there are no unpaid municipal claims or municipal
expenses against the property.
(b)
Specifying the nature and amount of such claims or expenses,
accompanied by a bill for such amounts.
(c)
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B(2) of this section, the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section, or where the Treasurer has issued a certificate described in Subsection B(2) 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:
(1)
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.
(2)
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.
(3)
Upon receipt of the above-described portion of the insurance
proceeds, the Treasurer shall do the following:
(a)
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 article. 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
(b)
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.
(c)
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 the 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.
(d)
Pay to the Borough Treasurer, for reimbursement to the
Borough general fund, the amount of the municipal expenses paid by the Borough.
(e)
Pay the remaining balance in the fund (without interest)
to the named insured upon receipt of a certificate issued by the Borough Treasurer
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.
(4)
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 article, 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 article 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
article 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 article.
An insurance company, association or exchange making payment of policy
proceeds under this article for delinquent taxes or structure removal liens
or removal expenses incurred by the Borough shall have a full benefit of such
payment, including all rights of subrogation and of assignment.
this article 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 this
article promptly to the Pennsylvania Department of Community and Economic
Development.
Any owner of property, any named insured or insurer who violates the
provisions of this article or who shall fail to comply with any of the requirements
hereof shall be sentenced, upon conviction thereof, 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 on which an offense
shall continue shall be deemed a separate offense.