[HISTORY: Adopted by the Borough Council of the Borough of
Tyrone as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-10-1994 by Ord. No. 1072]
The Borough of Tyrone Code Enforcement Officer or such official's
designee is hereby appointed as the designated officer authorized
to carry out all responsibilities and duties set forth herein.
[Amended 1-31-1995 by Ord. No. 1085]
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 Tyrone (hereinafter the "municipality")
where the amount recoverable for a fire loss to the structure under
all policies exceeds $7,500, unless the named insured or insuring
agent is furnished by the Municipal Treasurer with a municipal certificate
pursuant to Section 508(b) of Act 98 of 1992, as it may be amended
from time to time, and unless there is compliance with Section 508(c)
and (d) of Act 98 of 1992, as it may be amended from time to time,[1] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 1-31-1995 by Ord. No. 1085]
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, as
amended,[1] the Municipal 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 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.Â
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 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
B.Â
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.
C.Â
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.Â
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 and secure the building or other structure.
E.Â
Upon receipt of proceeds under this section, the municipality shall
do the following:
(1)Â
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; and
(2)Â
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; and
(3)Â
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;
and
(4)Â
To the extent that interest is earned on proceeds held by the municipality
pursuant to this section, such interest shall belong to the municipality.
F.Â
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.
[1]
Editor's Note: See 40 P.S. § 638.
The Tyrone Borough Council may adopt procedures and regulations
to implement Act 98 of 1992 and this article and may 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.
Any owner of property, any named insured or any insuring agency
who violates this article shall, upon conviction thereof, be subject
to a penalty of not less than $100 and not more than $1,000 per violation.
[Added 1-31-1995 by Ord. No. 1085]
The provisions of this article regarding dollar amounts shall
be automatically amended so as to reflect and duplicate any subsequent
amendments to Act 98 of 1992.
