[Ord. 595, 9/8/1993, § 1; as amended by Ord. 607,
11/29/1995, § 1]
The Township of Darby Treasurer/Tax Collector, Manager is hereby
designated to perform all duties assigned by Section 508 of the Insurance
Company Law of 1921, 40 P.S. § 638, in connection with the
issuance of fire loss certifications and collection of funds paid
by insurance in settlement of outstanding municipal taxes and claims
against fire damaged buildings or structures located within the Township
of Darby, for the collection of funds paid by insurers as security
against the total cost incurred by the Township for the removing,
repairing or securing of fire damaged buildings and structures located
within the Township of Darby; for the establishment and/or administration
of a separate account for the deposit of such security funds and for
the distribution of such security funds.
[Ord. 595, 9/8/1993, § 2]
1. The Township of Darby Treasurer/Tax Collector shall, upon the written
request of the named insured specifying the tax description of the
property and the date agreed upon by the insurance company, association
or exchange and the named insured as of the date of the receipt of
the proof of loss of the claim, furnish the named insured either of
the following, which shall then be supplied by the named insured to
the company, association or exchange:
A. A certificate to the effect that, as of the date specified in the
request, there are no delinquent taxes, assessments, penalties or
user charges against the property and that, as of the date of the
Treasurer/Tax Collector's certificate, the Township of Darby
has certified any amount as for the removal, repair or securing of
a building or other structure on the property.
B. A certificate or bill showing the amount of delinquent taxes, assessments,
penalties and user charges against the property as of the date specified
in the request that have not been paid as of the date of the certificate
and also showing, as of the date of the Treasurer/Tax Collector's
certificate, the amount of the total costs, if any, certified to the
Treasurer/Tax Collector that have been incurred by the Township for
the removal, repair or securing of a building or other structure on
the property. For the purpose of this subsection, the Township shall
certify to the Treasurer/Tax Collector the total amount, if any, of
such costs.
2. Payment of Claim.
A. Upon receipt of a certificate pursuant to Subsection
1A of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the Township of Darby shall follow the procedures set forth in §§
1-703 and
1-704 of this Part.
B. Upon receipt of a certificate and bill pursuant to Subsection
1B of this section, the insurance company, association or exchange shall return the bill to the Treasurer/Tax Collector and transfer to the Treasurer/Tax Collector an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs shown on the bill. The Township of Darby shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Ord. 595, 9/8/1993, § 3]
When the loss agreed to between the name insured and the company,
association or exchange equals or exceeds 60% of the aggregate limits
of liability on all fire policies covering the building or other structure,
the insurance company, association or exchange shall transfer from
the insurance proceeds to the Treasurer/Tax Collector of the Township
of Darby in the aggregate $1,000 for each $20,000, and each fraction
of that amount of a claim or, if at the time of a proof of loss agreed
to between the named insured and the insurance company, association
or exchange the name insured has submitted a contractor's signed
estimate of the costs of removing, repairing or securing the building
or other structure, the insurance company, association or exchange
shall transfer from the insurance proceeds the amount specified in
the estimate. The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building
or other structure. Policy proceeds remaining after the transfer to
the Township of Darby shall be disbursed in accordance with policy
terms. The named insured may submit a contractor's signed estimate
of the costs of removing, repairing or securing the building or other
structure after the transfer, and the designated officer shall return
the amount of the fund in excess of the estimate to the named insured
if the Township of Darby has not commenced to remove, repair or secure
the building or other structure. This section only applies to fire
losses that occur after the adoption of this Part.
[Ord. 595, 9/8/1993, § 4]
Upon receipt of proceeds by the Township of Darby as authorized by this Part, the Township of Darby Treasurer/Tax Collector shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Township of Darby. When transferring the funds as required in §
1-703 of this Part, an insurance company, association or exchange shall provide the Township of Darby with the name and address of the named insured, whereupon the Township of Darby shall contact the named insured, certify the proceeds have been received by the Township of Darby and notify the named insured that the procedures under this section shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received the Township of Darby Treasurer/Tax Collector if the Township of Darby has not incurred any costs for repairs, removal or securing. If the Township of Darby 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 Township of Darby shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Township of Darby to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Township of Darby 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.
[Ord. 595, 9/8/1993, § 5]
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with §
1-703 of this Part is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with §
1-703 of this Part.
[Ord. 595, 9/8/1993, § 6]
Nothing in this Part shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
the proceeds payable under its insurance policy or for any other act
performed pursuant to this Part, or to make the Township of Darby,
any Township of Darby official, a municipality or public official
an insured under a policy of insurance or to create an obligation
to pay delinquent property taxes or unpaid removal liens or expenses
other than as provided in this Part.
[Ord. 595, 9/8/1993, § 7]
An insurance company, association or exchange making payment
of policy proceeds under this Part for delinquent taxes or structure
removal liens or removal expenses incurred by the Township of Darby
shall have a full benefit of such payment including all rights of
subrogation and of assignment.
[Ord. 595, 9/8/1993, § 8]
This Part shall be liberally construed to accomplish its purpose
to deter the commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration.
[Ord. 595, 9/8/1993, § 9]
Any person, firm or corporation who shall violate any provision
of this Part shall, upon conviction thereof, be sentenced to a fine
of not more than $600 plus costs and, in default of payment of said
fine and costs, to a term of imprisonment not to exceed 30 days. Each
day on which a violation of this Part shall continue shall be deemed
a separate offense.