[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, and the provisions of this article.
[Amended 1-31-1995 by Ord. No. 1085]
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, as amended, 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:
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
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.
The transfer of proceeds shall be on pro rata basis by all companies, associations 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 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.
Upon receipt of proceeds under this section, the municipality shall do the following:
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
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
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
To the extent that interest is earned on proceeds held by the municipality pursuant to this section, such interest shall belong to the municipality.
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 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.