[Ord. 93-300. Passed 4-19-1993]
The Township Treasurer is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
In the event of an insured fire loss to a building or structure located within the Township where the loss agreed upon by the named insured and the insuring agent equals or exceeds sixty percent of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures shall be followed:
The insuring agent shall transfer from the insurance proceeds to the designated officer of the Township either:
One thousand dollars for each $20,000 of the claim, and for each fraction of that amount of the claim. The provisions of this paragraph shall be applied such that if the claim is $20,000 or less, the amount transferred to the Township shall be $1,000.
The amount specified in the estimate 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 transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring buildings or other structures.
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 of the named insured, if the Township has not commenced to remove, repair or secure the building or other structure.
Upon receipt of proceeds under this section, the Township shall do the following:
The designated officer shall place the proceeds in the 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.
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 insured that the procedures under this section shall be followed. 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.
When repair, removal or securing of the building or other structure has 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 therefor shall be paid from the fund. If excess funds remain, the Township shall transfer the remaining funds to the named insured.
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.
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Furthermore, nothing in this section 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 may fix, by resolution, a reasonable fee for the preparation of any certificate requested pursuant to Section 508(B) of Act 98 of 1992.
The Township may fix, by resolution, reasonable fees to be charged for Township activities in connection with the opening of separate escrow accounts for the performance of any inspections hereunder.