[Ord. 549, 10/10/2007, § 1]
The Borough Treasurer or his designee is appointed as the designated
officer who is authorized to carry out the responsibilities and duties
stated herein.
[Ord. 549, 10/10/2007, § 2]
No insurance company, association or exchange (hereinafter "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 Home Rule Borough of Edinboro (hereinafter the "Borough")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless an insuring agent is furnished
by the Borough Treasurer with a municipal certificate or verbal notification
pursuant to § 508(b) of Act 98 of 1992 and unless there
is compliance with § 508(c) and (d) of Act 98 of 1992 and
Act 93 of 1994, 40 P.S. § 638, and the provisions of this
Part.
[Ord. 549, 10/10/2007, § 3]
1. Where pursuant to § 508(b)(1)(i) of Act 98 of 1992 and
Act 93 of 1994, as amended, 40 P.S. § 638, the Borough Treasurer
issues a certificate or verbal notification indicating that there
are no delinquent taxes, assessments, penalties or user charges against
real property, the insuring agent shall pay the claim of the named
insured; provided, however, that if the loss is 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
restructure, the following procedures shall be followed:
A. The insuring agent shall transfer from the insurance proceeds to
the designated officer 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 is 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 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, 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 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 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 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 proceeds under this section, the Borough shall do
the following:
(1)
The designated office shall place the proceeds in a separate
fund to be used solely as security against the total costs of removing,
repairing or securing the building or structure which are 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 any proceeds 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
received by the designated officer, and if the Borough has not incurred
any costs for repairs, removal or securing, the fund shall be returned
to the named insured. 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.
(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 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
if some other reasonable disposition of the damaged property has been
negotiated.
[Ord. 549, 10/10/2007, § 4]
The Home Rule Borough of Edinboro may by resolution adopt procedures
and regulations to implement Act 98 of 1992 and Act 93 of 1994, 40
P.S. § 638, as amended, and this Part and may by resolution
fix reasonable fees to be charged for municipal activities or services
provided pursuant to Act 98 of 1992 and Act 93 of 1994, as amended,
and this Part; including, but not limited to, issuance of certificates
and bills, performance of inspections and opening separate fund accounts.