Borough of Bellefonte, PA
Centre County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Bellefonte 10-18-1993 by Ord. No. 1079 (Ch. 1420, Sec. 1420.06, of the 1979 Codified Ordinances). Amendments noted where applicable.]
When a loss agreed to between a named insured and an insurance company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the damaged building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds to the Borough Manager the aggregate sum of $2,000 for each $15,000 and each fraction of that amount of a claim. Alternatively, if at the time a proof of loss agreed to between the named insured and the insurance company, association or exchange has been submitted the named insured has also submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the damaged building or other structure. Policy proceeds remaining after the transfer to the Borough shall be disbursed in accordance with the policy terms. The named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the damaged building or structure after the transfer, and the Borough Manager shall return the amount of the fund in excess of the estimate to the named insured if the Borough has not commenced to remove, repair or secure the damaged building or other structure.
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Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
Upon receipt of the proceeds by the Borough as authorized by this chapter, the Borough Manager shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Borough. When transferring funds as required in § 290-1 hereof, an insurance company, association or exchange shall provide the Borough with the name and address of the named insured, whereupon the Borough shall contact the named insured, certify that the proceeds have been received by the Borough and notify the named insured that the procedures under this chapter shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the damaged building or other structure has been completed and the required proof received by the Borough Manager, if the Borough has not incurred any costs for repair, removal or securing. If the Borough has incurred costs for repair, removal or securing of the damaged building or other structure, the costs shall be paid from the fund, and if excess funds remain, the Borough shall transfer the remaining funds to the named insured.
Nothing in this chapter shall be construed to limit the ability of the Borough to recover any deficiency. Further, nothing in this chapter shall be construed to prohibit the Borough 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.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with this chapter is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with this chapter.
Nothing in this chapter shall be construed to make the Borough or any Borough official an insured under a policy of insurance or to create an obligation to pay delinquent property taxes or unpaid removal liens or expenses other than as provided for by law.