Borough of Sellersville, PA
Bucks County
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[HISTORY: Adopted by the Borough Council of the Borough of Sellersville as indicated in article histories. Amendments noted where applicable.]
[Adopted 11-12-2012 by Ord. No. 683]
The Borough Manager, or his/her designee (hereinafter, the "Municipal Officer"), is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties of the municipality stated herein.
A. 
No insurance company, association or exchange (hereinafter "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 Sellersville (hereinafter the "Borough") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insuring agent is furnished by the Municipal Officer with a municipal certificate pursuant to Section 508 (B) of Act 98 of 1992,[1] as amended, and unless there is compliance with both Section 508 (C) of Act 98 of 1992, as amended, and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
B. 
If the Municipal Officer issues a municipal certificate that confirms there are delinquent taxes, assessments, penalties and/or user charges against the subject property, the insuring agent shall, within 14 days of the receipt of the municipal certificate, transfer to the Municipal Officer funds from the insurance proceeds equal to the amount due to the Borough, and prior to the insuring agent paying a claim to the named insured in accordance with the policy terms. In addition, 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 or structure, the insuring agent must follow the procedures set forth in § 75-3 of this article, prior to the insuring agent paying a claim to the named insured in accordance with the policy terms.
C. 
If the Municipal Officer issues a municipal certificate that confirms there are no delinquent taxes, assessments, penalties and/or user charges against real property, the insuring agent shall pay the claim of the named insured in accordance with the policy terms; 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 or structure, the insuring agent shall first follow the procedures set forth in § 75-3 of this article.
A. 
The insuring agent shall follow the procedures below when 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 or structure.
(1) 
The insuring agent shall transfer from the insurance proceeds to the Municipal Officer an amount in the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim; if the claim is $15,000 or less, the amount transferred to the Municipal Officer shall be $2,000.
(2) 
If at the time of the loss report of the claim, as agreed to between the named insured and the insuring agent, the named insured has submitted a contractor's signed estimate of the costs to remove, repair or secure the building or other structure, the insuring agent shall transfer from the insurance proceeds to the Municipal Officer the amount specified in the estimate.
(3) 
The transfer of proceeds shall be on pro rata basis by the insuring agent insuring the building or other structure.
(4) 
Within 60 days after the transfer, the named insured shall submit a contractor's signed estimate for the costs to remove, repair or secure the building or other structure, and the Municipal Officer shall return any amount of funds transferred to the Borough in excess of said estimate, provided the Borough has not commenced to remove, repair or secure the building or other structure.
(5) 
Upon receipt of proceeds under this section:
(a) 
The Municipal Officer shall place the proceeds in a separate fund to be used solely as security against the total costs to remove, repair, or secure the building or structure as incurred by the Borough. Such costs shall include all reasonable and customary engineering, legal or administrative costs incurred by the Borough in connection with such removal, repair, or securing of the building or structure.
(b) 
It is the obligation of the insuring agent when transferring the proceeds to the Borough 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 name insured, the Borough shall certify that the proceeds have been received by sending written notification to the named insured that states the (i) proceeds have been received, and (ii) procedures under this article 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 Borough, and the required proof of such completion received by the Municipal Officer, and if the Borough has not incurred any costs for such repairs, removal or securing, the funds shall be returned to the named insured. If the Borough has incurred costs for repairs, removal or securing of the building or other structure, these costs shall be paid from the funds and if excess funds remain, the Borough shall transfer the excess funds to the named insured.
(d) 
To the extent that interest is earned on proceeds held by the Borough pursuant to this article, 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.
B. 
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the Borough 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 to the satisfaction of both parties.
Fees for services provided pursuant to this article shall be as follows:
A. 
Issuance of municipal certificate: $5.
B. 
Creation of escrow fund account: $20.
Upon the enactment of this article, the Borough Secretary shall file an exact copy with the Commonwealth of Pennsylvania, Department of Community and Economic Development, Governor's Center for Local Government Services, together with the name, position and telephone number of the Municipal Officer responsible for compliance with the Fire Insurance Escrow Act.