[Ord. 1995-2, 8/8/1995, § 1]
No insurance company, association, or exchange (herein after the "insurer") doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within the Township of Douglass where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurer is furnished by the Township Treasurer with a certificate pursuant to § 508(b) of the Insurance Company Law of 1921, as amended by Act 98 of 1992 and Act 93 of 1994 (hereafter "Act"), 40 P.S. § 638(b) and unless there is compliance with the procedure set forth in § 508(c) and (d) of the Act, 40 P.S. § 638(c) and (d).
[Ord. 1995-2, 8/8/1995, § 2]
Where there are delinquent taxes, assessments, penalties, or user charges against the property (hereafter "municipal claims"), or there are expenses which the Township has incurred as costs for the removal, repair, or securing of a building or other structure on the property (hereafter "municipal expenses"), the Secretary of the Township shall immediately render a bill for such work. Upon written request of the named insured, wherein the named insured specifies the tax description of the property, the name and address of the insurer and the date of receipt by the insurer of a loss report of the claim, the Treasurer shall furnish to the insurer, within 14 working days after the request, a certificate; said certificate shall state either (1) as of the date specified in the request that there are no unpaid municipal claims and as of the date of the certificate that there are no municipal expenses against the property; or (2) specifying the nature and certify the amount of such claims or expenses, accompanied by a bill for such amounts. Taxes, assessments, penalties, and user charges shall be deemed delinquent for this purpose, if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to clause (2) of this section, the insurer shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds sufficient to pay the taxes, assessments, penalties, charges, and costs as shown on the bill, subject to the provisions of § 1-503 hereof.
[Ord. 1995-2, 8/8/1995, § 3]
1. 
When all municipal claims and municipal expenses have been paid pursuant to § 1-502 or when the Treasurer has issued a certificate described in clause (1) of § 1-502 indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and the insurer 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 insurer shall transfer from the insurance proceeds to the Treasurer, in the aggregate, $2,000 for each $15,000 of the amount recoverable from all policies for such claim or fraction thereof.
B. 
If at the time a loss report is submitted by the insured, such insured has submitted to the insurer, with a copy to the Township, 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 at paragraph .A, the insurer shall transfer to the Treasurer from the insurance proceeds the amount specified in the estimate. If there is more than one insurer, the transfer or proceeds shall be on a pro rata basis by all insurers insuring the building or other structure.
C. 
Upon receipt of the above described portion of the insurance proceeds at paragraph .B, the Treasurer shall do the following:
(1) 
Place the proceeds in a separate fund to be used solely as security against the total municipal expenses anticipated by the Township to be required in removing, repairing, or securing the building or structure as required by this Part. Such costs shall include, without limitation, any engineering, legal, or administrative costs incurred by the Township in connection with such removal, repair, or securing or any proceedings related thereto.
(2) 
Mail to the named insured, at the addressed received from the insurer, a notice that the proceeds have been received by the Township and that the procedures under this Part shall be followed.
(3) 
After the transfer pursuant to this section, the named insured may submit to the Township a contractor's signed estimate of the costs of removing, repairing, or securing the building or other structure, in which event the Treasurer shall, if such estimate is deemed by the Township to be reasonable, return to the insured the amount of the funds transferred to the Township in excess of that required to pay the municipality expenses, provided the Township has not commenced to remove, repair, or secure the building or other structure, in which case the Township will complete the work.
(4) 
Pay to the Township, for reimbursement to the general fund, the amount of the municipal expenses paid by the Township.
(5) 
Pay the remaining balance in the fund (without interest) to the named insured upon receipt of a certificate issued by the Township Building Inspector that the repair, removal, or securing of the building or other structure has been completed in accordance with all applicable codes, regulations, and ordinances of the Township.
D. 
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency in the amount of municipal claims or municipal expenses by an action at law or equity.