[HISTORY: Adopted by the Borough Council of the Borough of
Springdale as indicated in article histories. Amendments noted where
applicable.]
[Adopted 7-18-1995 by Ord. No. 1176]
The Treasurer of the Borough of Springdale 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 "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 Springdale (hereinafter 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 Section
508(b) of the Insurance Company Law of 1921, as amended by Act 98
of 1992 and Act 93 of 1994 (hereinafter the "Law"),[1] indicating that there are no delinquent taxes or other
charges against the property, and unless there is compliance with
Section 508(c) and (d) of the Law and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
Where, pursuant to Section 508(b) of the Law, the Borough Treasurer
issues a certificate indicating, in writing, 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 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
following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the Borough Treasurer in the aggregate $2,000 for each $15,000 of
a claim and 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 municipality shall be $2,000; or
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 Borough Treasurer 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 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 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 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 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 subsection shall be followed.
(3)
When repairs, removal or securing of the building of 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.
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.
The Borough of Springdale may by resolution adopt procedures
and regulations to implement the Law and this article and may by resolution
fix reasonable fees to be charged for municipal activities or services
provided pursuant to the law and this article; including but not limited
to issuance of certificates and bills, performance of inspections
and opening separate fund accounts.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation.
Following adoption of this article, an exact copy of this article
together with the name and telephone number of the Borough Treasurer
shall be filed with the Pennsylvania Department of Community and Economic
Development, as provided in Section 508(i) of the Law.[1]
[1]
Editor's Note: See 40 P.S. § 638.
