Township of Northampton, PA
Bucks County
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Table of Contents
Table of Contents
[Ord. 369, 9/22/1993]
The Township Manager or such official's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
[Ord. 369, 9/22/1993; as amended by Ord. 394, 4/26/1995]
No insurance company, association, exchange, agent or broker (hereinafter 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 Northampton Township (hereinafter the "Township") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the named insured or insurer is furnished by the Township Treasurer with a municipal certificate pursuant to Section 508(b) of Act 98 of 1992 and unless there is compliance with Section 508(c) and (d) of Act 98 of 1992 and the provisions of this Part, 40 P.S. § 638(b), (c) and (d).
[Ord. 369, 9/22/1993; as amended by Ord. 394, 4/26/1995]
1. 
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, 40 P.S. § 638(b)(1)(i), the Township Treasurer, upon receipt of any administrative fee established by the Township, issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against real property, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon between 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 designated officer of the Township an amount equal to $2,000 for each $15,000 or fraction thereof of the agreed claim; if the claim is $15,000 or less, the amount transferred to the Township shall be $2,000.
B. 
If at the time of a proof of loss agreed to between the named insured and the insurer the named insured has submitted a contractor's signed estimate of the costs of removing and/or securing the building or other structure, the insurer shall transfer to the Township from the insurance proceeds the amount specified in the estimate.
C. 
The transfer of proceeds shall be on pro rata basis by all insurers 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 and/or securing the building or other structure, and the designated officer 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 and/or secure the building or other structure.
[Ord. 369, 9/22/1993]
1. 
Upon receipt of proceeds under § 1-503, 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 and/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 municipality in connection with such removal and/or securing of the building or any proceedings related thereto.
B. 
It is the obligation of the insurer 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 designated officer 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.
C. 
When removal and/or securing of the building or other structure has been completed in accordance with all applicable regulations and orders of the Township and the required proof of such completion received by the designated officer and if the Township has not incurred any costs for removal and/or securing, the fund shall be returned to the named insured. 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 municipality shall transfer the remaining funds to the named insured.
D. 
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 that the proceeds are returned.
[Ord. 369, 9/22/1993]
Nothing in this Part 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 if some other reasonable disposition of the damaged property has been negotiated.
[Ord. 369, 9/22/1993]
The Board of Supervisors may by resolution adopt procedures and regulations to implement Act 98 of 1992, 40 P.S. §§ 636.1 and 638, and this Part and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992 and this Part, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.
[Ord. 369, 9/22/1993; as amended by Ord. 561, 4/25/2012]
Any owner of property or any insurer who violates this Part, upon conviction thereof in an action brought before a magisterial district judge in the manner provided for the enforcement of summary offenses under the Pennsylvania Rules of Criminal Procedure, shall 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 90 days. Each day that a violation of this Part continues or each section of this Part which shall be found to have been violated shall constitute a separate offense.