[HISTORY: Adopted by the Borough Council of the Borough of
West Reading 12-15-1992 by Ord.
No. 742 (Ch. X, Part 4, of the 1993 Code of Ordinances).
Amendments noted where applicable.]
The Borough Manager or such official's designee is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Amended 12-20-1994 by Ord. No. 759]
A.
No insurance company, association or exchange (hereinafter referred
to as 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 West Reading (hereinafter
referred to as "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 with a certificate pursuant to Section
508(b) of Act 98 of 1992, as amended,[1] and unless there is compliance with the procedures set
forth in Sections 508(c) and 508(d) of Act 98 of 1992, as amended,
and the provisions of this chapter.
[1]
Editor's Note: See 40 P.S. § 638.
B.
The Borough Treasurer shall, upon the written request of the named
insured, specifying the tax description of the property, name and
address of the insuring agent and the date agreed upon by the insuring
agent and the named insured as the date of the receipt of a loss report
of the claim, furnish the insuring agent either of the following within
14 working days of the request:
(1)
A certificate or, at the discretion of the Borough, a verbal notification
which shall be confirmed in writing by the insuring agent 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 Borough Treasurer's certificate or
verbal notification, no municipality has certified any amount as total
costs incurred by the municipality for the removal, repair or securing
of a building or other structure on the property; or
(2)
A certificate and 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 Borough Treasurer's certificate,
the amount of the total costs, if any, certified to the Borough Treasurer
that have been incurred by the Borough for the removal, repair or
securing of a building or other structure on the property. For the
purposes of this section, the Borough shall certify to the Borough
Treasurer the total amount, if any, of such costs. A tax, assessment,
penalty or user charge becomes delinquent at the time and on the date
a lien could otherwise have been filed against the property by the
municipality under applicable law.
C.
Upon receipt of a certificate and bill pursuant to Subsection B(2) of this section, the insuring agent shall return the bill to the designated officer and transfer to the designated officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Amended 12-20-1994 by Ord. No. 759]
Where, pursuant to § 222-2B(1) of this chapter and Section 508(b)(1)(i) of Act 98 of 1992, as amended,[1] the Borough Treasurer issues a certificate indicating
that there are no delinquent taxes, assessment, penalties, or user
charges against the real property, the insuring agent 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 following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Borough in the aggregate $2,000 for
each $15,000 and each fraction of that amount of a claim.
B.
If, at the time of the loss report, the named insured has submitted
a contract or contractor's signed estimate of the costs of removing,
repairing or securing the building or other structure in an amount
less than the amount calculated under the foregoing transfer formula,
the insuring agent shall transfer from the insurance proceeds the
amount specified in the contract or 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 contract or 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 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 the proceeds under this section, the following procedures
shall be followed:
(1)
The designated officer shall place the proceeds in a separate fund
to be used solely as security against the total cost of removing,
repairing or securing the building or structure 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 other structure
or any proceedings related thereto; and
(2)
The insuring agent shall provide the Borough with the name and address
of the named insured. Upon receipt of the transferred funds and the
name(s) and address(es) of the name insured(s), the designated officer
shall contact the named insured(s), certify that the proceeds have
been received by the Borough, and notify the named insured(s) that
the procedures under this section and Section 508(d) of Act 98 of
1992, as amended, shall be followed;
(3)
When the 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
is received by the designated officer, and if the Borough has not
incurred any costs for the repairs, removal or securing, then the
fund shall be paid to the named insured(s). If the Borough 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 Borough shall transfer the remaining funds to the named insured(s);
and
(4)
To the extent that interest is earned on the proceeds held by the
Borough pursuant to this section and not returned to the named insured(s),
such interest shall belong to the Borough. To the extent that the
proceeds are returned to the named insured(s), interest earned on
such proceeds shall be distributed to the named insured(s) at the
time that the proceeds are returned.
F.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
section shall be construed to prohibit the Borough and the named insured(s)
from entering into an agreement that permits the transfer of funds
to the named insured(s) if some other reasonable disposition of the
damaged property has been negotiated.
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 12-20-1995 by Ord. No. 759]
The Borough Council may, but need not, adopt by resolution procedures
and regulations to implement Act 98 of 1992, as amended,[1] and this chapter and may by resolution fix reasonable
fees to be charged for Borough activities or services provided pursuant
Act 98 of 1992, as amended, and this chapter, including, without limitation,
issuance of certificates and bills, performance of inspections, and
opening separate escrow fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
Any person who violates or permits a violation of this chapter
shall, upon conviction in a summary proceeding under the Pennsylvania
Rules of Criminal Procedure, be guilty of a summary offense and shall
be punishable by a fine of not more than $1,000, plus court costs
and reasonable attorneys' fees incurred by the Borough in the enforcement
proceedings. Upon judgment against any person by summary conviction,
or by proceedings by summons on default of the payment of the fine
or penalty imposed and the costs, the defendant may be sentenced and
committed to the Borough correctional facility for a period not exceeding
10 days or to the county correctional facility for a period not exceeding
30 days. Each day that such violation exists shall constitute a separate
offense, and each section of this chapter that is violated shall also
constitute a separate offense. In addition to or in lieu of enforcement
under this section, the Borough may enforce this chapter in equity
in the Court of Common Pleas of Berks County.
