[HISTORY: Adopted by the Borough Council of the Borough of
Mahanoy City as indicated in article histories. Amendments noted where
applicable.]
[Adopted 11-11-1992 by Ord. No. 92-8]
The Secretary-Treasurer of the Borough of Mahanoy City is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties stated herein.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
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 Borough of Mahanoy City (hereinafter the "municipality")
where 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 Municipal Secretary-Treasurer with a municipal
certificate pursuant to Section 508(b) of Act 98 of 1992[1] and unless there is compliance with Section 508(c) and
(d) of Act 98 of 1992[2] and the provisions of this article.
A.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992,[1] the Municipal Secretary-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:
(1)
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the municipality 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 municipality shall be $2,000;
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 to the municipality from the insurance proceeds the amount
specified in the estimate.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
(2)
The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(3)
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 municipality in excess
of the estimate to the named insured if the municipality has not commenced
to remove, repair or secure the building or other structure.
(4)
Upon receipt of proceeds under this section, the municipality shall
do the following:
(a)
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 municipality. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the municipality
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(b)
It is the obligation of the insuring agent, when transferring
the proceeds, to provide the municipality 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 municipality and notify the named insured that the procedures
under this subsection shall be followed.
(c)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion
received by the designated officer, and if the municipality has not
incurred any costs for repairs, removal or securing, the fund shall
be returned to the named insured. If the municipality 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 municipality shall transfer the remaining funds to the named insured.
(d)
To the extent that interest is earned on proceeds held by the
municipality pursuant to this section and not returned to the named
insured, such interest shall belong to the municipality. 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.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
B.
Nothing in this section shall be construed to limit the ability of
the municipality to recover any deficiency. Furthermore, nothing in
this subsection shall be construed to prohibit the municipality 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 Borough of Mahanoy City 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.[1]
[1]
Editor's Note: Current resolutions are on file in the
office of the Borough Secretary-Treasurer.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation.
