[Ord. 707, 9/16/2003, § 1]
This Part is hereby ordained and enacted by the Council of the
Borough of Ben Avon.
[Ord. 707, 9/16/2003, § 2]
This Part shall be known as the "Borough of Ben Avon Fire Escrow
Ordinance."
[Ord. 707, 9/16/2003, § 4]
This Part is adopted to manage properties blighted by fire,
to discourage the abandonment of properties damaged by fire, to prevent
urban blight and deterioration and to discourage arson and related
crimes in the Borough of Ben Avon.
[Ord. 707, 9/16/2003, § 5]
1.
In the construction of this Part, the rules and definitions contained
in this section shall be observed and applied, except when the context
clearly indicates otherwise:
[Ord. 707, 9/16/2003, § 6]
The Borough of Ben Avon.
The Secretary of the Borough of Ben Avon.
The Solicitor of the Borough of Ben Avon.
Includes any company, association or exchange authorized
by the Insurance Commissioner of Pennsylvania to transact the business
of insurance in the Commonwealth of Pennsylvania and empowered to
issue policies of property insurance against fire loss.
Damage to an insured property interest caused by fire.
The certificate furnished to a named insured by the Borough
under this Part.
[Ord. 707, 9/16/2003, § 7; as amended by Ord. 752,
1/17/2012]
1.
Compliance with Procedures. No insurance company, association or exchange doing business in this Commonwealth shall pay a claim of a named insured for insured fire damage to a structure located with the Borough of Ben Avon where the amount recoverable for the insured loss to the structure under all policies exceeds $5,000 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection 1 of this section and unless there is compliance with the procedures set forth in Subsections 3 and 4 of this section.
2.
Written Request by Named Insured for Certificate.
A.
Issuance of Certificate by Secret. The Borough Secretary 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 the date of the receipt
of a proof of loss of the claim, furnish the named insured with either
of the following certificates specified in subparagraphs (1) and (2),
which shall then be supplied by the named insured to the company,
association or exchange:
(1)
No Delinquent Taxes or Assessments. A certificate to the effect
that, as of the date specified in the request, there are no delinquent
taxes, assessments, penalties, interest, filing fees or user charges
against the property and that, as of the date of the Secretary's
certificate, the Borough has not certified any amount as total costs
incurred by the Borough for the removal, repair or securing of a building
or other structure on the property.
(2)
Delinquent Taxes or Assessments. A certificate and bill showing
the amount of delinquent taxes, assessments, penalties, interest,
filing fees 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 Secretary's certificate,
the amount of the total costs, if any, certified to the Secretary
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 subsection, the Borough shall certify to the Secretary
the total amount, if any, of such costs.
(3)
Administrative Fee Must Accompany Written Request. All written
requests by a named insured for a certificate shall be accompanied
with a fee in an amount as established, from time to time, by resolution
of Borough Council, to cover the direct and indirect costs incurred
by the Borough in processing said request. The Borough Council may,
from time to time by resolution, either increase or decrease said
fee.
B.
Receipt of Certificate by Insurance Company.
(1)
Payment of Claim to Named Insured. Upon the receipt of a certificate pursuant to Subsection 2A(1), 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 policies of property insurance covering fire loss to the building or other structure. In the case of such a fire loss, the insurance company, association or exchange, the insured property owner and the Borough shall follow the procedures set forth in Subsections 4 and 5 of this section.
(2)
Payment of Bill to Borough. Upon the receipt of a certificate and bill pursuance to Subsection 2A(2), the insurance company, association or exchange shall return the bill to the Secretary and transfer to the Borough an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, interest, filing fees, 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.
3.
Procedure When Loss Equals or Exceeds 60% of Aggregate Limits of
Liability.
A.
Payment to Designated Officer. When 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 insurance policies
covering fire loss to the building or other structure, the insurance
company, association or exchange shall transfer from the insurance
proceeds to the Secretary of the Borough in the aggregate $1,000 for
each $20,000 and each fraction of that amount of a claim; or, if at
the time of proof of loss agreed to between the named insured and
the insurance company, association or exchange, the named 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 to the Borough
from the insurance proceeds the amount specified in the estimate.
B.
Designation of Officer to Receive Insurance Proceeds. The Borough
Solicitor shall receive all insurance proceeds and manage all escrow
funds received under this Part.
C.
Pro Rata Transfer of Proceeds. Transfer of proceeds shall be on a
pro rata basis by all companies, associations or exchanges liable
to the property owner(s) under the policies insuring against the fire
loss incurred to the building or other structure.
D.
Policy Proceeds Remaining. Policy proceeds remaining after the transfer
to the Borough shall be on a pro rata basis by all companies, associations
or exchanges liable to the property owner(s) under the policies against
the loss incurred to the building or other structure.
E.
Disbursement of Excess Funds. Policy proceeds remaining after the
transfer to the Borough shall be disbursed in accordance with the
policy terms.
F.
Contractor's Estimate of Repairs or Removal. 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 Secretary shall return the amount of the escrow fund 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. If the
Borough has commenced to remove, repair or secure the building or
structure, the Borough shall use its estimate of the cost thereof
and shall refund to the owner the difference, if any.
4.
Receipt of Proceeds by Borough.
A.
Establishment of Separate Escrow Funds. The Borough Solicitor shall
establish separate escrow funds to be held by the Borough to carry
out the purposes of this Part.
B.
Receipt of Proceeds by the Borough. Upon receipt of proceeds by the
Borough as authorized by this section, the Solicitor 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
Borough. Unless agreed upon in a specific case, and then only upon
receipt of a duly executed W-9 form with the tax identification number
of the insured, no interest shall be payable on funds held by the
Borough under this Part. When interest is payable, it shall be paid
to the named insured only after all provisions and conditions of this
Part have been met.
C.
Transferring of Funds. When transferring the funds as required in Subsection 3 of this section, an insurance company, association or exchange shall provide the Borough with the name and address of the named insured, whereupon the Borough 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 subsection shall be followed.
D.
Inspection of Property. No funds shall be released from the escrow
required under this Part until after the named insured repairs, demolishes
or secures the property, and the Building Inspector inspects and approves
the property for compliance with all Borough ordinances. If the named
insured properly repairs, demolishes or secures the property in accordance
with applicable ordinances, the Building Inspector shall notify the
Secretary of such completion. If the named insured fails to properly
repair, demolish or secure the property in accordance with applicable
codes, the Borough may choose to do so and the funds escrowed shall
be applied to the Borough's costs incurred.
E.
Completion of Repairs or Removal Without Cost to the Borough. The
fund, together with any interest thereon, if interest is payable,
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 by the Secretary if the Borough has not incurred any
costs for repairs, removal or securing.
F.
Payment of Costs to Borough from Funds When Borough has Incurred
Costs. If the Borough has incurred costs for repairs, removal or securing
of the building or other structure, those costs shall be paid from
the fund, and, if excess funds remain, the Borough shall transfer
the remaining funds to the named insured.
5.
Insufficient Funds to Pay Borough Costs. Nothing in this Part shall
be construed to limit the ability of the Borough to recover any deficiency
by any means now or hereafter permitted by law or in equity.
A.
Other Reasonable Dispositions Permitted. 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 escrowed funds
to the named insured, or its assignee, if some other reasonable disposition
of the damaged property has been negotiated which is acceptable to
the Borough.
6.
Discharge of Insurance Obligation. Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with Subsection 3 of this section 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 Subsection 3 of this section.
7.
No Additional Obligations Created. Nothing in this Part shall be
construed to make an insurance company, association or exchange liable
for any amount in excess of proceeds payable under its insurance policy
or for any other act performed pursuant to this Part or to make the
Borough or any public official thereof 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.
8.
Liberal Construction. 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. 707, 9/16/2003, § 8; as amended by Ord. 752,
1/17/2012]
Any person, firm or corporation who shall violate any provision
of this Part, upon conviction thereof, shall be sentenced to a fine
of not more than $1,000 plus costs and, in default of payment of said
fine and costs, to a term of imprisonment not to exceed 30 days. Each
day that a violation of this Part continues or each section of this
Part which shall be found to have been violated shall constitute a
separate offense. Nothing contained herein shall be deemed to preclude
the Borough to seek other relief or avail itself of any remedy that
may be at law or in equity to prevent continuing violations of the
terms of this Part.
