[Adopted 6-14-1994 by Ord.
No. 253]
The Codes Enforcement Officer is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties stated
therein.
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 with the Township
of Loyalsock (hereinafter the "municipality") when the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500 unless
the named insured or insuring agent is furnished by the Codes Enforcement
Officer with a municipal certificate pursuant to Section 508(B) of Act 98
of 1992 and unless there is compliance with Section 508(C) and (D) of Act
98 of 1992 and the provisions of this article.
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992, the Codes
Enforcement Officer issues a certificate indicating that there are no delinquent
taxes, assessments, penalties or user charges against real property, the insuring
agent shall pay the claim of the named insured; provided, however, that if
the loss as 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:
A. The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Township of Loyalsock 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 of Loyalsock shall be $2,000; or
B. If at the time of a proof of loss 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, the insuring agent shall transfer to the Township of Loyalsock
form the insurance proceeds the amount specified in the estimate.
C. The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure.
D. 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 of Loyalsock in excess of the estimate
to the named insured, if the Township of Loyalsock has not commenced to remove,
repair or secure the building or other structure.
E. Upon receipt of proceeds under this section, the Township
of Loyalsock shall do the following:
(1) The designated officer shall place the proceeds in the
separate fund to be used solely as security against the total costs or removing,
repairing or securing the building or structure which are incurred by the
Township of Loyalsock. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the Township of Loyalsock in connection
with such removal, repair or securing of the building or any proceedings related
thereto.
(2) It is the obligation of the insuring agent when transferring
the proceeds to provide the Township of Loyalsock 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 of Loyalsock
and notify the named insured that the procedures under this subsection shall
be followed.
(3) 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 of Loyalsock and the required proof of such completion
received by the designated officer, and if the Township of Loyalsock has not
incurred any costs for repairs, removal or securing, the fund shall be returned
to the named insured. If the Township of Loyalsock 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 of Loyalsock
shall transfer the remaining funds to the named insured.
(4) Nothing in this section shall be construed to limit the
ability of the Township of Loyalsock to recover any deficiency. Furthermore,
nothing in this subsection shall be construed to limit the ability of the
Township of Loyalsock to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Township of Loyalsock 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 Supervisors of the Township of Loyalsock may by resolution
adopt procedures and regulations to implement Act 98 of 1992 and this article
and may by resolution fix reasonable fees to be charged for municipal activities
or services provided pursuant to Act 98 of 1992 and this article, including
but not limited to issuance of certificates and bills, performance of inspections
and opening separate fund accounts.
[Amended 10-8-1996 by Ord.
No. 266]
This article shall be enforced by action brought before a District Justice
in the same manner provided for the enforcement of summary offenses under
the Pennsylvania Rules of Criminal Procedure. Any person who violates or permits
the violation of this article shall, upon conviction in a summary proceeding,
be punishable by a fine of not less than $100 nor more than $1,000 or by imprisonment
for a term not exceeding 90 days. Each day or portion thereof that such violation
continues or is permitted to continue shall constitute a separate offense.
Each section of this article that is violated shall also constitute a separate
offense.