Township of North Strabane, PA FIRE INSURANCE ESCROW PROCEDURES

[Ord. 273, 11/28/2000]

The Code Enforcement Officer, or such official designee, is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.

§ 702 Municipal Certificate Required.

[Ord. 273, 11/28/2000]

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 the fire damage to a structure located within North Strabane Township (hereinafter the "Township") where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000 unless the named insured or insuring agent is furnished by the Township Treasurer 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 Part 7.

§ 703 Fire Insurance Escrow.

[Ord. 273, 11/28/2000]

Where, pursuant to Section 508(B)(1)(I) of Act 98 of 1992, the Township 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 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:

The insuring agent shall transfer from the insurance proceeds to the designated officer of the Township in the aggregate of $1,000 for $20,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that, if the claim is $20,000 or less, the amount transferred to the municipality shall be $1,000; or

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 from the Township from the insurance proceeds the amount specified in the estimate.

The transfer of proceeds shall be on pro rata basis by all companies, associates or exchanges insuring the building or other structure.

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.

Upon receipt of proceeds under this section, the Township 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 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.

(2)

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 name 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.

(3)

When repairs, 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 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.

(4)

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 the 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 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.

§ 704 Adoption of Procedures and Regulations; Fee for Certificate.

[Ord. 273, 11/28/2000]

The Board of Supervisors of North Strabane Township may, by resolution, adopt procedures and regulations to implement Act 98 of 1992 and this Part 7 and may, by resolution, fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992 and this Part, including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts.

Any person or entity requesting a certificate that there are no delinquent taxes, assessments, penalties or user charges against real property shall submit a written request along with a certificate fee of $20.

Penalties. Any owner of property, any named insured or any insuring agent who violates this Part 7 shall be subject to a penalty of up to $1,000.

§ 705 Collection of Fees.

[Ord. 273, 11/28/2000; as added by Ord. 285, 5/28/2002, § 1]

Within 30 days of the date of providing fire prevention and protection services, the Chief of the North Strabane Township Volunteer Fire Company or his designated representative shall submit an invoice for all costs, fees, charges and expenses related to the provision of such services in the minimum amounts set forth in the schedule. All such bills shall be paid in full within 30 days of the receipt thereof, and interest shall accumulate thereafter on any unpaid balance at the rate of 10% per annum until paid.

In addition, any bills, fines or penalties, including but not limited to cleanup costs, fees or expenses that are imposed upon the Township or its Volunteer Fire Company by any local, state or federal agency and related to the same situation or occurrence for which the Township or its Volunteer Fire Company, may be included in the billing or may be billed separately within 30 days of receipt and shall be paid as provided in this section.

Such fees may include and encompass all equipment, materials, maintenance and overhead expenses and costs of whatever nature which shall constitute full reimbursement to North Strabane Township Volunteer Fire Department for such services actually rendered and as hereinafter authorized.

Fees Authorized. The following fees are hereby authorized:

Residential fire response: $500.

Apartment fire response (per apartment): $500.

Commercial or business fire response: $1,000.

Industrial fire response: $5,000.

Other structure response: $1,000.

Vehicle, rubbish, trash or other fire response: $250.

Hazardous material spill response: $500.

Standby response for utility service interruptions: $100.

These fees may be adjusted from time to time as desired by the North Strabane Township Board of Supervisors by resolution.

Enforcement. The Township may enforce the provisions of this section by civil action in a court of competent jurisdiction for the collection of any amounts due hereunder, plus attorneys' fees, costs and expenses and any other relief that may be appropriate.