[HISTORY: Adopted by the Board of Supervisors of the Township of
Lehigh as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-7-1993 by Ord.
No. 1993-4]
The Township Secretary/Treasurer or such official's designee is hereby
appointed as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Amended 11-11-1997 by Ord.
No. 97-5]
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 a structure located within the Township
of Lehigh, Northampton County, Pennsylvania (hereinafter the "Township"),
where the amount recoverable for the fire loss to the structure under all
policies exceeds $7,500, unless the insuring agent has been previously furnished
with a Township certificate by the Township Secretary/Treasurer pursuant to
Section 508(b) of the Act[1] and after said insuring agent has fully complied with Section
508(c) and (d) of the Act and with all, but not less than all, the provisions
of this article.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
[Amended 11-11-1997 by Ord.
No. 1997-5]
A.Â
Pursuant to Section 508 of the Act, as amended, when
the Township Secretary/Treasurer issues a certificate and bill showing the
amount of delinquent taxes, assessments, penalties or user charges against
the property, which shall include any and all delinquencies due the Township
Municipal Authority, the Lehigh Township Volunteer Fire Company, Northampton
Area School District, Northampton County or any other charges that a public
body has against the property, including, but not limited to, sewer and water
charges and any and all debts due the Township of Lehigh whether arising directly
or indirectly from the casualty or otherwise, the insuring agent shall return
the bill to the Secretary/Treasurer and transfer to the Secretary/Treasurer
an amount from the insurance proceeds necessary to pay the taxes, assessments,
penalties, charges, debts and costs as shown on the bill. The Township shall
receive the amount and apply or credit it to payment of the items shown in
the bill
B.Â
Pursuant to Section 508 of the Act, as amended, when
the Township Secretary/Treasurer issues a certificate or, at the discretion
of the Township Secretary/Treasurer, a verbal notification which shall be
confirmed in writing by the insurer, indicating that there are no delinquent
taxes, assessments, penalties or user charges against the property, which
shall include any and all delinquencies due the Township Municipal Authority,
the Lehigh Township Volunteer Fire Company, Northampton Area School District,
Northampton County or any other charges that a public body has against the
property including, but not limited to, sewer and water charges and any and
all debts due the Township of Lehigh whether arising directly or indirectly
from the casualty or otherwise, the insuring agent shall pay the claim of
the named insured, provided, however, that if the loss 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:
(1)Â
The insuring agent shall transfer moneys from the insurance
proceeds to the designated officer of the Township of Lehigh 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 Township shall be $2,000; or
(2)Â
If at the time of a loss report 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 Township
from the insurance proceeds the amount specified in the estimate.
(3)Â
The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure.
(4)Â
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 Township in excess of the estimate to the named
insured, if the Township has not commenced to remove, repair or secure the
building or other structure.
(5)Â
Upon receipt of proceeds under this section, the Township
shall do the following:
(a)Â
The designated officer 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 structure which are incurred by the
Township. Such costs shall include, without limitation, any engineering, legal
or administrative costs incurred by the Township in connection with such removal,
repair or securing of the building or any proceedings related thereto; and
(b)Â
It is the obligation of the insuring agent when transferring
the proceeds to provide the Township 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 Township and notify the
named insured that the procedures under this subsection shall be followed;
and
(c)Â
When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the Township and the required proof of such completion received
by the designated officer, and if the Township has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the Township 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 Township shall transfer the remaining funds
to the named insured; and
(d)Â
To the extent that interest is earned on proceeds held
by the Township pursuant to this section, and not returned to the named insured,
such interest shall belong to the Township. 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.
(6)Â
Nothing in this section shall be construed to limit the
ability of the Township to recover any deficiency. Furthermore, nothing in
this subsection shall be construed to prohibit the Township 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.
The Township of Lehigh may by resolution adopt procedures and regulations
to implement Act 98 of 1992[1] and this article, and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to the Act
and this article; including but not limited to issuance of certificates and
bills, performance of inspections and opening separate fund accounts; and
for any reasonable fees incurred through operation of an escrow account, which
resolution is incorporated herein by reference, and which resolution may be
amended from time to time by a subsequent resolution.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
