[HISTORY: Adopted by the Borough Council
of the Borough of Yeadon as indicated in article histories. Amendments
noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 156.
[Adopted 12-7-1995 by Ord. No. 1245 as
§ 1610.35 of the 1995 Code]
This article will apply for all instances described
in 40 P.S. § 638 et seq.
As used in this article, the following terms
shall have the meanings indicated:
The named insured's insurance company, association or exchange.
When the amount of the loss resulting from a
fire within the Borough, as agreed to between the named insured and
the insurance company, equals or exceeds 60% of the aggregate limits
of liability on all fire policies covering the building or other structure,
the insurance company shall transfer from the insurance proceeds to
the Borough Manager, in the aggregate, $1,000 for each $20,000 and
each fraction of that amount of a claim, or if, at the time of a proof
of loss agreed to between the named insured and the insurance company,
the named insured has submitted a contractor's signed estimate of
the costs of removing, repairing or securing the building or other
structure, the insurance company shall transfer from the insurance
proceeds the amount specified in the estimate. The transfer of proceeds
shall be on a pro rata basis by all insurance companies insuring the
building or other structure. Policy proceeds remaining after the transfer
to the Borough shall be on a pro rata basis by all insurance companies
insuring the building or other structure. Policy proceeds remaining
after the transfer to the Borough shall be disbursed in accordance
with the policy terms. The named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure after the transfer, and the designated
officer shall return the amount of the fund in excess of the estimate
to the named insured if the Borough has not commenced to remove, repair
or secure the building or other structure.
Upon receipt of proceeds by the Borough as authorized by this article, the Borough Manager shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Borough. When transferring the funds, as required in § 177-3 hereof, an insurance company shall provide the Borough with the name and address of the named insured, whereupon the Borough shall contact the named insured, certify that the proceeds have been received by the Borough and notify the named insured that the procedures under this article shall be followed. The fund shall be returned to the named insured when repair, removal or securing of the building or other structure has been completed and the Borough has verified that it has not incurred any costs for repair, removal or securing of the building or other structure. If the Borough has incurred costs for repair, removal or securing of the building or other structure, the costs shall be paid from the fund, and, if excess funds remain, the Borough shall transfer the remaining funds to the named insured. Nothing in this article shall be construed to limit the ability of the Borough to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Borough 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.
