[Ord. 964, 4/12/2000,
§ 7010]
The Borough, through provisions of this Part, hereby incorporates
the provisions of § 638 of the Insurance Company Law, 40
P.S. § 638, as amended, which provides the Township with
the authority to require security in the form of insurance proceeds
from an insurance company, association or exchange (hereinafter the
"insuring agent"), doing business in Pennsylvania, for the removal,
repair and securing of fire damaged buildings and other structures
subject to fire loss claims.
[Ord. 964, 4/12/2000,
§ 7011]
The Borough Treasurer, or such official's designee, shall
be the designated officer authorized to carry out all responsibilities
and duties stated herein. Any reference to "Borough Treasurer" or
"Treasurer" shall be defined to include the Treasurer and/or the Treasurer's
official designee.
[Ord. 964, 4/12/2000,
§ 7012]
No insuring agent shall pay a claim of a named insured for fire
damage to a structure located within 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 municipal
certificate from the Borough Treasurer pursuant to § 638(b)
of the Insurance Company Law, as amended, and unless there is compliance
with the provisions of this Part.
[Ord. 964, 4/12/2000,
§ 7013]
1. Issuance of Certificate Where Delinquent Taxes or Charges are Due
and/or Costs Have Been Incurred by Borough Related to the Fire Damaged
Building or Structure. Where pursuant to § 638(b)(1)(ii)
of the Insurance Company Law, as amended, the Borough Treasurer is
requested to issue a certificate to the insuring agent regarding property
that is subject to delinquent taxes, assessments, penalties and user
charges, the Treasurer shall issue such certificate along with a bill
showing the amount of delinquent taxes, assessments, penalties and
user charges against the subject property that have not been paid
as of the date of the Treasurer's certificate and also showing,
as of the date of the Treasurer's certificate, the amount of
the total costs, if any, certified to the Treasurer that have been
incurred by the Borough for the removal, repair or securing of a damaged
building or other structure on the property.
A. The Borough shall be responsible for certifying to the Treasurer
any such costs incurred by the Borough for removal, repair or securing
of a damaged building or other structure on the property.
B. The insuring agent shall, upon receipt of such certificate and bill,
return the bill to the Borough Treasurer and transfer to the Treasurer
an amount from the insurance proceeds necessary to pay the taxes,
assessments, penalties, charges and costs as shown on the bill.
C. The Borough shall, upon receipt of such amount, apply or credit the
amount to payment of the items shown on the bill.
2. Issuance of Certificate Where No Delinquent Taxes or Charges Are Due and No Costs Have Been Incurred by Township Related to the Fire Damaged Building or Structure. Where pursuant to § 638(b)(1)(i) of the Insurance Company Law, as amended, the Borough Treasurer is requested to issue a certificate to the insuring agent, or, at the discretion of the Borough Treasurer, a verbal notification confirmed in writing by the insuring agent, regarding property that is not subject to delinquent taxes, assessments, penalties or user charges, the Treasurer shall issue such a certificate which indicates that there are no delinquent taxes, assessments, penalties or user charges against the property, and that as of the date of the Treasurer's certificate or verbal notification, the Borough has not certified any amount as total costs incurred by the Borough for the removal, repair or securing of a damaged building or other structure on the property, and the insuring agent shall pay the claim of the named insured; provided, however, that if the loss as 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 other structure, the insuring agent shall transfer proceeds, as security, to the Borough in accordance with Subsections
3 and
4, which conform to §§ 638(c) and (d) of the Insurance Company Law.
3. Transfer of Proceeds. In accordance with § 638(c) of the
Insurance Company Law, as amended, the insuring agent shall transfer
from the insurance proceeds, as security, to the Borough Treasurer:
A. An amount in the aggregate of $2,000 for each $15,000 of a fire loss
claim and for each fraction thereof; however, if the amount of such
claim is $15,000 or less, the amount transferred to the Township shall
be $2,000.
B. If at a time of the loss report the named insured has submitted a
contractor's signed estimate of the costs of removing, repairing
or securing the building or other structure that is in an amount less
than the above formula, the insuring agent shall transfer to the Borough
the amount specified in the estimate.
4. Pro Rata Transfer. The transfer of proceeds shall be on a pro rata
basis by all companies, associations or exchanges insuring the damaged
building or structure.
5. Post Transfer Contractor's Estimate. After the transfer of proceeds,
the named insured may submit a contractor's signed estimate of
the costs of removing, repairing or securing the damaged building
or other structure, and the Borough Treasurer shall return the amount
of secured proceeds in excess of the estimate to the named insured,
if the Borough has not otherwise commenced removing, repairing or
securing the damaged building or other structure.
6. Accounting Procedure for Transferred Proceeds. Upon receipt of security
under this section, the Borough shall conform to the following procedure,
pursuant to § 638(d) of the Insurance Company Law:
A. The Borough Treasurer shall place the proceeds in a separate fund
to be used solely as security against the total costs of removing,
repairing, or securing the damaged 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 removing, repairing or securing of the building
or any procedure related thereto.
B. When transferring the proceeds, it is the obligation of the insuring
agent to provide the Borough with the name and address of the named
insured, whereupon the Borough Treasurer 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 section and § 638(d)
of the Insurance Company Law shall be followed.
C. The proceeds shall only be returned to the named owner upon the following
stated occurrences: the damaged building or other structure has been
properly repaired, removed or secured in accordance with all applicable
laws, regulations and requirements of the Borough; the requisite proof
of such completion has been received by the Borough Treasurer; and
the Borough has not incurred any costs associated with repairing,
removing or securing the damaged building or other structure.
D. If the Borough has incurred costs associated with repairing, removing
or securing the building or other structure, such costs shall be paid
from the secured funds. If excess funds remain, the Borough Treasurer
shall transfer the remaining funds to the named insured.
E. Any interest earned on proceeds held by the Borough that are not
returned to the named insured shall belong to the Borough. Any interest
earned on proceeds that are returned to the named insured shall be
distributed to the named insured at the time said proceeds are returned.
7. Borough's Ability to Recover Deficiency. Nothing in this Part
shall be construed to limit the ability of the Borough to recover
any deficiency.
8. Agreement with Named Insured. Nothing in this subsection shall be
construed to prohibit the Borough and the named insured from entering
into an agreement which permits the transfer of funds to the named
insured if some other reasonable disposition of the damaged property
has been negotiated.
[Ord. 964, 4/12/2000,
§ 7014]
The Borough may by resolution adopt procedures and regulations
to implement § 638 of the Insurance Company Law, as amended,
and this Part, and may by resolution fix reasonable fees to be charged
for municipal activities or services provided pursuant to § 638
of the Insurance Company Law, as amended, and this Part including,
but not limited to, issuance of certificates and bills, performance
of inspections and opening separate fund accounts.
[Ord. 964, 4/12/2000,
§ 7015; as amended by Ord. 995, 12/10/2003]
1. Any person, firm or corporation who violates a provision of this
Part, or who fails to comply therewith, or with any of the requirements
thereof, shall be, upon conviction thereof, sentenced to pay a fine
of not less than $300 nor more than $1,000 for each violation, plus
costs, and in default of payment of said fine and costs, to imprisonment
to the extent permitted by law for the punishment of summary offenses.
2. A separate offense shall arise for each day or portion thereof in
which a violation is found to exist or for each section of this Part
found to have been violated. All fines and penalties for the violation
of this Part shall be paid to the Borough Treasurer.
3. The Borough may also commence appropriate actions in equity or other
to prevent, restrain, correct, enjoin, or abate violations of this
Part.