[Adopted 3-14-2007 by Ord. No. 880]
The Borough Secretary or such official as the Borough Councilpersons
may designate from time to time ("designated official") is hereby
appointed as the designated official who is authorized to carry out
all responsibilities and duties stated herein.
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 Irwin where the amount recoverable for
the fire loss to the structure under all applicable policies exceeds
$7,500 unless the insuring agent is furnished by the designated official
with a Borough certificate pursuant to Act 98 of 1992, as amended, and unless there is compliance with Act 98
of 1992, as amended, and the provisions of this article.
Where, pursuant to Act 98 of 1992, as amended, the designated
official issues a certificate indicating that there are no delinquent
taxes, assessments, penalties or user charges against real property,
the insuring agent may 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 pursuant to Act 98 of 1992, as amended:
A. The insuring agent shall transfer from the insurance proceeds to
the designated official of the Borough in the aggregate of $2,000
for each $15,000 of a claim and for each fraction of that amount of
a claim; this subsection is to be applied such that if the claim is
$15,000 or less, the amount transferred to the Borough shall be $2,000.
B. If at the time of a proof of loss agreed to between the named insured
and the insuring agent the name 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 Borough from the insurance proceeds the amount specified in the
estimate.
C. The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
D. 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 official shall return
the amount of the funds transferred to the Borough in excess of the
estimate to the named insured, if the Borough has not commenced to
remove, repair or secure the building or other structure.
E. Upon receipt of proceeds under this section, the Borough shall perform
the following:
(1) The designated official shall place the proceeds in a 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 Borough. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(2) It is the obligation of the insuring agent when transferring the
proceeds to provide the Borough 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 official 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 subsection
shall be followed.
(3) When repair, removal or securing of the building or other structure
has been completed in accordance with all applicable regulations and
orders of the Borough, and the required proof of such completion received
by the designated official, and if the Borough has not incurred any
costs for repair, removal or securing of the building or other structure,
the fund shall be returned to the named insured. If the Borough has
incurred costs for repair, removal or securing of the 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.
(4) To the extent that interest is earned on proceeds held by the Borough
pursuant to this section and not returned to the named insured, such
interest shall belong to the Borough. 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.
The Borough of Irwin may, by resolution, adopt procedures and
regulations to implement Act 98 of 1992, as amended, 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, as amended,
and this article, including by not limited to issuance of certificates
and bills, performance of inspections and opening separate fund accounts.
Said fees shall be the responsibility of the named insured.