[HISTORY: Adopted by the Borough Council of the Borough of
Folcroft as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Fire company — See Ch. 68.
[Adopted 11-21-2006 by Ord. No. 990 (Ch. 1, Part 9, of the 2006 Code of
Ordinances)]
The Borough Secretary, Fire Marshal or such official's
designee is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties stated herein.
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 where the amount recoverable for the fire
loss to the structure under all policies exceeds $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,[1] and unless there is compliance with § 508(C)
of Act 98 of 1992, as amended,[2] and the provisions of this article.
Where pursuant to § 508(B)(1)(I) of Act 98 of 1992,
as amended,[1] the Borough Treasurer issues a certificate indicating
that there are not 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 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 structure, 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 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 costs of removing, repairing or securing the
building or other structure, 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 shall submit a contractor's
signed estimate within 60 days 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 officer 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 all reasonable and customary
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 name 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
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 damaged property has been negotiated.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Council of the Borough may by resolution adopt procedures
and regulations to implement Act 98 of 1992, as amended,[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Act 98 of 1992, as amended, and this article, including but not
limited to issuance of certificates and bills, performance of inspections
and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or any insuring agent
who violates this article, upon conviction thereof, shall be sentenced
to pay 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 article continues shall
constitute a separate offense.
