[HISTORY: Adopted by the City Council of the City of DuBois 3-8-1993 by Ord. No.
1515 (Ch. 1, Part 9, of the 1995 Code). Amendments
noted where applicable.]
The Codes Enforcement Officer 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 7-24-1995 by Ord. No. 1544; 12-26-1995 by Ord. No. 1553]
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 City of DuBois (hereinafter the "City") where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insuring agent is furnished with a certificate
of compliance pursuant § 508(b) of the Act of 1992, as amended,
by the City Treasurer of the City of DuBois and unless there is compliance
with §§ 508(c) and (d) of said Act and the provisions
of this chapter.
[Amended 7-24-1995 by Ord. No. 1544; 12-26-1995 by Ord. No. 1553]
Where pursuant to § 508(1)(I) of Act 98 of 1992 the
City Treasurer 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 amount of 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:
A.
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the City an amount 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 shall be applied such that if the claim is $15,000
or less, the amount transferred to the City shall be $2,000.
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 City from 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 City in excess of the estimate to
the named insured, if the City has not commenced to remove, repair
or secure the building or other structure.
E.
Upon receipt of proceeds under this section, the City 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 of removing,
repairing or securing the building or structure which are incurred
by the City. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the City 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 City 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 City
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 City and the required proof of such completion received
by the designated officer, and if the City has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the
named insured. If the City has incurred costs for repairs, removal
or securing of the building or other structure, the costs shall be
paid from the fund and, if any excess funds remain, the City shall
transfer the remaining funds to the named insured.
(4)
To the extent that interest is earned on proceeds held by the City
pursuant to this section, and not returned to the named insured, such
interest shall belong to the City. To the extent that proceeds are
returned to the named insured, interest earned on those proceeds shall
be distributed to the named insured at the time that the proceeds
are returned.
F.
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency. Furthermore, nothing in this subsection
shall be construed to prohibit the City 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 Council of the City of DuBois may, by resolution, adopt
procedures and regulations to implement Act 98 of 1992 and this chapter
and may by resolution fix reasonable fees to be charged for municipal
activities or services provided pursuant to Act 98 of 1992 and this
chapter, including but not limited to issuance of certificates and
bills, performance of inspections and opening separate fund accounts.
[Amended 7-24-1995 by Ord. No. 1544; at time of adoption
of Code revisions (see Ch. 1, General Provisions, Art. II)]
Any owner of property, any named insured or any insuring agent
who violates this chapter shall, upon conviction thereof, be sentenced
to a fine of not less than $50 nor more than $1,000 plus costs and,
in default of payment of said fine and costs, to a term of imprisonment
not to exceed 90 days.
