[HISTORY: Adopted by the Borough Council of the Borough of Lewisburg 4-16-1996 by Ord. No. 903. Amendments noted where applicable.]
Fire Department — See Ch. 32.
The Borough Manager, or such authorized designee as approved by Borough Council, is hereby appointed as the designated officer who is authorized to carry out all responsibilities stated in this chapter.
No insurance company, association or exchange (hereinafter referred to as 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 where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insuring agent is furnished by the Borough's Tax Collector with a municipal certificate pursuant to § 508(b) of Act 98 of 1992, as amended, and unless there is compliance with §§ 508(c) and 508(d) of Act 98 of 1992, as amended, and the provisions of this chapter.
The Borough's Tax Collector shall, upon the written request of the named insured specifying the tax description of the property, the name and address of the insuring agent and the date agreed upon by the insuring agent and the named insured as the date of the receipt of a loss report of the claim, furnish the insuring agent either of the following within 14 working days of the said request:
A certificate or, at the discretion of the Borough, a verbal notification which shall be confirmed in writing by the insuring agent to the effect that, as of the date specified in the said request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the certificate or verbal notification, the Borough has not certified any amount as total costs incurred by the Borough for the removal, repair or securing of a building or other structure on the property; or,
A certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified in the said request that have not been paid as of the date of the certificate and also showing, as of the date of the certificate, the amount of the total costs, if any, certified to the Borough's Tax Collector that have been incurred by the Borough for removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, the Borough shall certify to the Borough's Tax Collector the total amount, if any, of such costs. A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by the Borough under applicable law.
Upon the receipt of a certificate and bill pursuant to § 174-3B of this chapter, the insuring agent shall return the bill to the Borough's Tax Collector and transfer to the Borough's Tax Collector an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough shall receive the amount and apply or credit it to payment of the items shown in the bill.
Upon the receipt of a certificate pursuant to § 174-3A of this chapter, the insuring agent shall pay the claim of the named insured in accordance with the policy terms; provided, however, that if the loss agreed to between the named insured and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the following procedures shall be followed:
The insuring agent shall transfer from the insurance proceeds to the Borough Manager in the aggregate $2,000 for each $15,000 and for each fraction of that amount of a claim (this subsection to be applied such that if the claim is $15,000 or less, the amount transferred to the Borough shall be $2,000, or, 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 the amount calculated under the foregoing transfer formula, the insuring agent shall transfer from the insurance proceeds to the Borough Manager the amount specified in the estimate.
The transfer of the proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure.
After the aforesaid transfer, the named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, in which event the Borough Manager shall return the amount of the funds transferred to the Borough 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 the proceeds under this section, the Borough shall do the following:
The Borough Manager shall place the proceeds in a separate fund to be used solely as security against the total costs of removing, repairing or securing the building or other structure which are incurred by the Borough. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Borough in connection with such removal, repair or securing of the building or other structure or any proceedings related thereto;
It is the obligation of the insuring agent when transferring the proceeds to provide the Borough 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 Borough Manager 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 subsection shall be followed;
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Borough and the required proof of such completion received by the Borough Manager, the fund shall be returned to the name insured if the Borough has not incurred any costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund to the Borough and if excess funds then remain, the Borough shall transfer the remaining funds to the named insured; and
To the extent that interest is earned on proceeds held by the Borough pursuant to this section and not returned to the named insured, such interest shall belong to the Borough, but 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.
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, 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.
Borough Council may from time to time by resolution adopt procedures and regulations to implement Act 98 of 1992, as amended, and this chapter and may from time to time by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992, as amended, and this chapter, including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts.
Any owner of property, named insured or insuring agent who violates any provision of this chapter shall be guilty of a summary offense and, upon conviction thereof in a summary proceeding before a District Justice, be sentenced to pay a fine of not more than $1,000, plus the costs of prosecution, for each violation, and, in default of payment of such fine and costs, be imprisoned for a period not to exceed 30 days.