[Ord. No. 523, 4/10/2018[1]]
The Rankin Borough Secretary or the Rankin Borough Secretary's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties referenced and stated herein.
[1]
Editor's Note: This ordinance superseded Ord. No. 515, adopted 11/14/2017, which established provisions for fire losses.
[Ord. No. 523, 4/10/2018]
For purposes of this Part, the following words shall have the following meanings:
CLAIM
An insurance claim of a named insured submitted to his or her insurer for fire damage to a building or structure located in Rankin Borough, where the amount recoverable for the fire loss to the structure under all insurance policies exceeds $7,500.
INSURER
Any insurance company, association or exchange doing business in the Commonwealth of Pennsylvania.
[Ord. No. 523, 4/10/2018]
1. 
No insurer shall pay a claim unless and until the insurer is furnished with a certificate of costs as more particularly set forth in this section and until there is otherwise full compliance with the following procedures set forth in this section:
A. 
Upon the written request of the named insured specifying: the tax description of the fire-damaged building or structure and lot on which it sits; the name and address of the insurer; and the date a loss report was submitted to and received by the insurer, the Rankin Borough Secretary, within 14 days of receiving the request, shall:
(1) 
Furnish to the insurer a certificate indicating 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 Rankin Borough Secretary's certificate, no certification of amount of costs incurred for the removal, repair or securing of a building or other structure on the property has been made by the Borough of Rankin or any other person or entity; or
(2) 
Furnish to the insurer a certificate and bill showing, as of the date the certificate is furnished:
(a) 
The amount of unpaid delinquent taxes, assessments, penalties and user charges against the property; and
(b) 
The amount of the total costs, if any, certified to the Borough of Rankin Secretary that have been incurred for the removal, repair or securing of a building or structure on the property including reasonable and customary engineering, legal, administrative costs incurred by Rankin Borough in connection with such removal, repair, or securing of the building or structure related engine.
(c) 
For purposes of § 4-303, Subsection 1A(2)(a), of this Part, 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 applicable law.
B. 
Upon the receipt of a certificate and bill pursuant to § 4-303, Subsection 1A(2) of this Part, the insurer shall return the bill to the Rankin Borough Secretary and transfer to the Rankin Borough Secretary an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. Rankin Borough shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Ord. No. 523, 4/10/2018]
1. 
In addition to any and all amounts paid to Rankin Borough by the insurer pursuant to § 4-303 above, to the extent any additional insurance proceeds remain after said payment is made, an insurer is additionally responsible for making payment to Rankin Borough as follows:
A. 
In every case where the loss agreed to between the insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the insurer shall pay insurance proceeds to the Borough of Rankin, in the aggregate $2,000 for each $15,000 and each fraction of that amount of a claim. Where there are multiple insurers for the claim, this transfer of proceeds to Rankin Borough shall be on a pro rata basis by all insurers.
B. 
If at the time of a loss report the named insured submits a qualified contractor's signed detailed 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 insurer shall transfer to the Borough of Rankin such lesser amount. The transfer of proceeds to the Borough of Rankin shall be on a pro rata basis by all insurers insuring the building or other structure.
C. 
Any policy proceeds remaining with the insurer after the insurer makes all of the above-referenced required payments to Rankin Borough pursuant to §§ 4-303 and 4-304 of this Part shall be disbursed by the insurer in accordance with the terms of the policy. Proof of payment by the insurer of proceeds under a policy in strict accordance with the requirements of this Part shall be conclusive evidence of the discharge of the insurer's obligation to the insured under the policy to the extent of the payment and of compliance by the insurer with this Part.
[Ord. No. 523, 4/10/2018]
1. 
Upon receipt by Rankin Borough of the proceeds from the insurer in accordance with the provisions of § 4-304 of this Part, the Rankin Borough Secretary shall place the proceeds in a separate fund. The proceeds placed in this separate fund shall be used by Rankin Borough solely as security against the total cost incurred by Rankin Borough relating to the removal, repair or securing of the building or structure, including all reasonable and customary engineering, legal, administrative costs, and/or costs of proceedings incurred by Rankin Borough in connection with such removal, repair, or securing of the building or structure.
2. 
Rankin Borough shall notify the named insured that the procedures under this Part are being followed.
3. 
If Rankin Borough incurs costs for repairs, removal or securing of the building or other structure, the costs shall first be paid from the fund, and, if excess funds remain, Rankin Borough shall transfer the remaining unused funds to the named insured. Nothing in this Part shall be construed to limit the ability of Rankin Borough to recover any deficiency. Further, nothing in this Part shall be construed to prohibit Rankin 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.
4. 
To the extent that interest is earned on proceeds held by Rankin Borough pursuant to this section, and retained by it, such interest shall belong to Rankin Borough. 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 proceeds are returned.
[Ord. No. 523, 4/10/2018]
Nothing in this Part shall be construed to make an insurer liable for any amount in excess of proceeds payable under its insurance policy or for any other act performed pursuant to this Part or to make Rankin Borough an insured under a policy of insurance or create an obligation to pay delinquent property taxes or unpaid removal liens or expenses other than as provided in this Part.
[Ord. No. 523, 4/10/2018]
Rankin Borough may by resolution adopt additional procedures and regulations as it deems prudent or necessary to implement this Part and may by resolution fix reasonable fees to be charged for municipal activities or services provided in connection with administering this, including the setting of fees and costs.
[Ord. No. 523, 4/10/2018]
It is the intention of Rankin Borough that all provisions set forth in this Part be liberally construed to accomplish its purpose and objective which is to deter the commission of arson and related crimes, to discourage the abandonment of property and to prevent urban blight and deterioration in Rankin Borough and to insure that Rankin Borough is protected to the greatest extent possible from incurring costs relating to such property.
[Ord. No. 523, 4/10/2018]
This Part is authorized by the Pennsylvania Fire Insurance Escrow Act, Act 93 of 1994, 40 P.S. § 638 et seq. (the "Act"), and any amendments thereto. It is the intention of Rankin Borough that the provisions of this Part be consistent with, authorized by and in compliance with the Act. To the extent any provision of this Part is inconsistent with or unauthorized by the Act, or any part thereof, such offending provision(s) in this Part shall be deemed amended or repealed only to the extent necessary to maintain this Part's compliance with the Act and to keep all other provisions of this Part in full force and effect.
[Ord. No. 523, 4/10/2018]
Any owner of property and/or any insurer who violates this Part shall be subject to a penalty of up to $1,000 per violation, plus attorney's fees and costs and any other amounts authorized by law. In default of payment of said fine and costs, a term of imprisonment not to exceed 30 days for an offense shall be assessed. Each day in which an offense continues shall be deemed a separate offense.
[Ord. No. 523, 4/10/2018]
The provisions of this Part shall be severable. If any of the provisions of this Part shall be held invalid or unenforceable, the remaining provisions of this Part shall remain in effect.
[Ord. No. 523, 4/10/2018]
Rankin Borough Ordinance Nos. 343 and 344 and all other ordinance or parts of ordinances conflicting with any of the provisions of this Part are hereby repealed to the extent necessary to remedy the conflict.