[HISTORY: Adopted by the Borough Council of the Borough of
Mount Wolf 5-8-2018 by Ord. No.
2018-02. Amendments noted where applicable.]
The Borough Secretary, 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 (hereinafter "municipality") where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insuring agent requests, and is furnished
by the municipal treasurer within 14 working days, written correspondence,
signed by the municipal treasurer:
A.
That, as of the date specified in the request from the insuring agent,
there are no delinquent taxes, assessments, penalties or user charges
against the property and that the municipality has not incurred costs
for the removal, repair or securing of a building or other structure
on the property; or
B.
A bill showing the amount of delinquent taxes, assessments, penalties
and user charges against the property as of the date specified in
the request from the insuring agent that have not been paid as of
the date of the treasurer's correspondence and also indicating,
the amount of the total costs, if any, documented by the treasurer
that have been incurred by a municipality for the removal, repair
or securing of a building or other structure on the property. A tax
assessment, penalty or user charge becomes delinquent at the time
and on the date a lien could otherwise have been filed against the
property by the municipality under state law.
B.
Upon receipt of the correspondence references in § 219-2B above, the insuring agent shall pay the municipality the amount indicated in the bill for delinquent taxes, assessment, penalties and any costs for the removal, repair, or securing of the property.
C.
As indicated above, when 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:
(1)
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the municipality 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 municipality shall be $2,000;
or
(2)
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 municipality from the insurance proceeds the amount specified
in the estimate.
(3)
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(4)
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 municipality
in excess of the estimate to the named insured, if the municipality
has not commenced to remove, repair or secure the building or other
structure.
(5)
Upon receipt of proceeds under this section, the municipality shall
do the following:
(a)
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 municipality. Such costs shall include, all reasonable and
customary engineering, legal or administrative costs incurred by the
municipality in connection with such removal, repair, or securing
of the building or any proceedings related thereto; and
(b)
It is the obligation of the insuring agent when transferring
the proceeds to provide the municipality 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 municipality and notify the named insured that
the procedures under this subsection shall be followed; and
(c)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion
received by the designated officer, and if the municipality has not
incurred any costs for repairs, removal or securing, the fund shall
be returned to the named insured. If the municipality 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 municipality shall transfer the remaining funds to the named insured;
and
(d)
To the extent that interest is earned on proceeds held by the
municipality pursuant to this section and not returned to the named
insured, such interest shall belong to the municipality. 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.
(6)
Nothing in this section shall be construed to limit the ability of
the municipality to recover any deficiency. Furthermore, nothing in
this subsection shall be construed to prohibit the municipality 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 Council may by resolution adopt procedures and regulations
to implement Act 98 of 1992 as amended and this chapter 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 chapter, including
but not limited to, issuance of correspondence and bills, performance
of inspections and opening separate fund accounts.
Any owner of property, any named insured or any insuring agent
who violates this chapter shall be subject to a penalty of up to $1,000
per violation.
