[HISTORY: Adopted by the Township Council of the Township
of Upper Darby as indicated in article histories. Amendments noted
where applicable.]
[Adopted 3-3-1993 by Ord.
No. 2795; amended in its entirety 4-19-1995 by Ord. No. 2824]
The Upper Darby Township Finance Director is hereby designated
to perform all duties assigned by § 508 of the Insurance
Company Law of 1921, 40 P.S. § 638, in connection with the
issuance of fire loss certifications and collection of funds paid
by insurers in settlement of outstanding municipal taxes and claims
against fire-damaged buildings or structures located within Upper
Darby Township; for the collection of funds paid by insurers as security
against the total cost incurred by the Township for the removing,
repairing or securing of fire-damaged buildings and structures located
within Upper Darby Township; for the establishment and administration
of a separate account for deposit of such security funds; and for
the distribution of such security funds.
A.Â
The Upper Darby Township Finance Director is hereby authorized to certify the amount of delinquent taxes, assessments, penalties or user charges that are outstanding against a building or other structure located in Upper Darby Township where the amount recoverable for the fire loss to the structure under all insurance policies exceeds $7,500 and to receive such funds from insurers in payment for such delinquent taxes and municipal claims in accordance with the procedure established by Subsection B.
B.Â
The Finance Director shall, upon the written request of the named
insured specifying the folio number for the property; the name and
address of the insurance company, association or exchange; and the
date agreed upon by the insurance company, association or exchange
and the named insured as the date of the receipt of a report of the
claim, furnish the insurance company, association, or exchange either
of the following, written within 14 working days of the request:
(1)Â
A certificate or, at the discretion of the Finance Director, a verbal
notification, which shall be confirmed in writing by the insurer,
to the effect that, as of the date specified in the request, there
are no delinquent taxes, assessments, penalties or user charges against
the property and that, as of the date of the Finance Director's certificate
or verbal notification, no Township department has certified any amount
as total costs incurred by Upper Darby Township for the removal, repair
or securing of a building or other structure on the property; or
(2)Â
A certificate and bill showing the amount of delinquent taxes, assessments,
penalties 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 Finance Director's certificate,
the amount of the total costs, if any, certified by any Township department
to the Finance Director as having been incurred by Upper Darby Township
for the removal, repair or securing of a building or other structure
on the property.
C.Â
Receipt of certificates.
(1)Â
Upon receipt of a certificate pursuant to Subsection B(1), the insurance company, association, or exchange shall have no further obligation to the Township 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 fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange and the insured property owner shall comply with the requirements of §§ 339-3 and 339-4 of this article.
(2)Â
Upon the receipt of a certificate and bill pursuant to Subsection B(2), the insurance company, association, or exchange shall return the bill to the Finance Director, together with an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Finance Director shall credit payment of the items shown in the bill and send a receipt to the insurance company, association, or exchange and the insured property owner.
When the loss agreed to by the named insured and the company,
association or exchange that has insured a building or other structure
located in Upper Darby Township against fire damage equals or exceeds
60% of the aggregate limits of liability on all fire policies covering
the building or other structure, the insurance company, association,
or exchange shall transfer from the insurance proceeds to the Upper
Darby Township Finance Director in the aggregate $2,000 for each $15,000
and each fraction of that amount of a claim, or, 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 insurance company, association,
or exchange shall transfer from the insurance proceeds the amount
specified in the estimate. 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 Upper Darby
Township Finance Director shall return the amount of the fund in excess
of the estimate to the name insured if the Township has not commenced
to remove, repair or secure the building or other structure.
Upon receipt of proceeds by the Township as authorized by § 339-3 of this article, the Upper Darby Township Finance Director 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 Township. When transferring the funds as required in § 339-3 of this article, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township shall contact the named insured, certify that the proceeds have been received by the Township and notify the named insured that the procedures under this section shall be followed. The fund 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 Upper Darby Township Finance Director, if the Township has not incurred any costs for repairs, removal or securing. If the Township 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 Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Township 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; however, such an agreement may not be entered into unless it is first reviewed by the Township Solicitor and approved by a resolution adopted by the Township Council.
