[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:
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.
