[Adopted 3-16-1993 by Ord. No. 752 (Ch. 1, Part 8, of the 1993 Code of
Ordinances)]
The Township Secretary 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 (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 Township where the amount recoverable for fire loss to
the structure under all policies exceeds $5,000 unless the named insured
or insuring agent is furnished by the Township Treasurer with a municipal
certificate pursuant to Section 508(b) of the Act and unless there is compliance with Section 508(c) of
the Act and the provisions of this article.
Where, pursuant to Section 508(b)(1)(i) of the Act, the Township Treasurer issues a certificate 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 as 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 Township Secretary in the aggregate of $1,000 for each $20,000
of a claim and for each fraction of that amount of a claim; this subsection
to be applied such that if the claim is $20,000 or less, the amount
transferred to the Township shall be $1,000.
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 Township from the insurance proceeds the amount specified in the
estimate.
C. The transfer of proceeds shall be on a 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 Township Secretary shall return
the amount of the funds transferred to the Township in excess of the
estimate to the named insured if the Township has not commenced to
remove, repair or secure the building or other structure.
E. Upon receipt of the proceeds under this section, the Township shall
do the following:
(1) The Township Secretary 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 Township. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Township
in connection with such removal, repair or securing of the building
or structure or any proceeds related thereto.
(2) It is the obligation of the insuring agent, when transferring the
proceeds, to provide the Township 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 Township Secretary 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 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 Township and the required proof of such completion
received by the Township Secretary, and if the Township has not incurred
any costs for repair, removal or securing, the fund shall be returned
to the named insured. If the Township has incurred costs for repairs,
removal or securing 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.
(4) To the extent that interest is earned on proceeds held by the Township
pursuant to this section and not returned to the named insured, such
interest shall belong to the Township. 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 the proceeds
are returned.
F. Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency. Furthermore, 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 or some other reasonable disposition
of the damaged property has been negotiated.
The Commissioners of the Township may by resolution adopt procedures
and regulations to implement the Act and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to the Act and this article, including, but not limited to, issuance
of certificates and bills, performance of inspections and opening
separate fund accounts.
[Amended 11-9-1993 by Ord. No. 760]
Any owner of property, any named insured or any insuring agent
who violates any provision of this article shall, upon conviction
thereof, 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.