[Ord. 349 (93-4), 9/1/1993, § 1]
The Borough Secretary of Glen Rock Borough or such official's designee as hereby appointed as the designated officer who is authorized to carry out the responsibilities and duties stated herein.
[Ord. 349 (93-4), 9/1/1993, § 2; as amended by Ord. 362 (95-1), 3/1/1995, § 1]
No insurance company, association or exchange (hereinafter 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 Glen Rock (hereinafter referred to as "Borough") for the amount recoverable for the fire loss to the structure under all policies exceeding $7,500, unless the insuring agent is furnished by the Borough Treasurer with a municipal certificate pursuant to § 508(b) of Act 98 of 1992, as amended, and unless there is compliance with § 508(c) and (d) of Act 98 1992, 40 P.S. § 638, as amended, and the provisions of this Part.
[Ord. 349 (93-4), 9/1/1993, § 3; as amended by Ord. 362 (95-1), 3/1/1995, § 2]
1.
Where pursuant to § 508(b)(1)(I) of Act 98 of 1992, as amended, 40 P.S. § 638, the Borough Treasurer issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against real property, the insuring agent shall pay the claim of the name insured; provided, however, that if the loss agreed upon by the named insured and the insuring agent equals or exceed 60% of the aggregate limits of liability on all fire policies covering the building restructure, the following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to the Secretary of the Borough in the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that if the claim is $15,000 or less, the amount transferred to the Borough shall be $2,000.
B.
If at the time of a proof of loss agreed to between the named insured and the insuring agent, the named insured has submitted a contractor's signed estimate of the cost 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 to the Borough from the insurance proceeds the amount specified in the estimate.
C.
The transfer of proceeds shall be on a prorate basis by all companies, associations or exchanges insuring the building or other structure.
D.
After the transfer, the named insured may submit a contractor's signed estimate of the cost of removing, repairing or securing the building or other structure, and the Borough Secretary shall return the amount of the funds transferred to the Borough 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 Borough shall do the following:
(1)
The Borough Secretary 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 which are incurred by the Borough. Such cost 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 any proceedings related thereto.
(2)
It is the obligation of the insuring agent, when transferring the proceeds, 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 named insured, the designated officer 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.
(3)
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 is received by the Borough Secretary, and if the Borough has not incurred any cost from repairs, removal or securing, the funds shall be returned to the named insured. If the Borough has incurred costs from repairs, removal or securing of the building or other structure, the cost shall be paid from the funds and, if excess funds remain, the Borough shall transfer the remaining funds to the named insured.
(4)
To the extent that interest is earned on proceeds held by the Borough pursuant to this section 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 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 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 damage property has been negotiated.
[Ord. 349 (93-4), 9/1/1993, § 4]
The Borough Council, by resolution, may adopt procedures and regulations to implement Act 98 of 1992, as amended, and this Part and, by resolution, may fix reasonable fees to be charged for Borough activities or services provided pursuant to Act 98 of 1992 and this Part; including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate accounts.
[Ord. 349 (93-4), 9/1/1993, § 5; as amended by Ord. 490 (2017-05), 10/18/2017]
Any owner of property, any named insured or any insuring agent 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.