Insured, their insurance companies, and the hereinafter designated
officer of Manheim Township are hereby authorized and directed to
comply with the following procedures in the event of fire damage to
or destruction of buildings or other structures in Manheim Township:
A. When the loss agreed to between the named insured and his insurance
company or companies, association or exchange (company) equals or
exceeds 60% of the aggregate limits of liability on all fire policies
covering the building or other structure, the company shall transfer
from the insurance proceeds to the designated officer of Manheim Township
in the aggregate $2,000 for each $15,000 and each fraction of that
amount of a claim. However, if, at the time the loss is agreed to
between the named insured and the company, the named insured has submitted
a contract or signed estimate of the costs of removing, repairing,
or securing the building or other structure, in an amount less than
the amount calculated under the foregoing transfer formula, the company
shall transfer from the insurance proceeds the amount specified in
the contract or signed estimate to the designated officer of Manheim
Township, along with a copy of the contract or signed estimate. The
transfer of proceeds shall be on a pro rata basis by all companies
insuring the building or other structure. After the transfer of funds
to Manheim Township, the named insured may submit a contract or signed
estimate to Manheim Township of the costs of removing, repairing,
or securing the building or other structure, in which case the designated
officer shall return the amount of the funds already transferred in
excess of the contract or signed estimate to the named insured, provided
that Manheim Township has not already commenced to remove, repair,
or secure the building or other structure.
B. Upon receipt of the proceeds by Manheim Township, the designated
officer shall place the proceeds in a separate fund to be used solely
as security against the total cost incurred by Manheim Township for
removing, repairing, or securing the building or other structure.
When transferring the funds, the company shall provide Manheim Township
with the name and address of the insured and certify that the proceeds
have been received by Manheim Township and shall notify the named
insured that the procedures set forth herein shall be followed.
C. When the building or other structure has been removed, repaired,
or secured and appropriate proof thereof has been received by the
designated officer, if Manheim Township has not incurred any costs
for the removal, repair, or securing, it shall return the fund to
the named insured. If Manheim Township has incurred costs for removal,
repair, or securing of the building or other structure, then those
costs shall be deducted from the fund, and if any excess funds remain,
Manheim Township shall transfer the remaining funds to the named insured.
D. Nothing contained herein shall be construed to limit the ability
of Manheim Township to recover any deficiency resulting from the costs
incurred by Manheim Township for the removal, repair, or securing
of any building or other structure which has been damaged by fire.
In addition, nothing contained herein shall be construed to prohibit
Manheim Township and the named insured from entering into an agreement
which permits the transfer of funds to the named insured if some other
reasonable disposition of the damaged property has been negotiated.
The designated officer of Manheim Township is the Township Manager-Secretary
or his designee.