[HISTORY: Adopted by the Borough Council of the Borough of
Mount Union as indicated in article histories. Amendments noted where
applicable.]
[Adopted 5-3-1993 by Ord. No. 1019 (Ch. I, Part 11, of the
1980 Code of Ordinances)]
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 of Mount Union (hereinafter "municipality")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $5,000, unless the insuring agent is furnished
by the Borough Treasurer with a municipal certificate pursuant to
Section 508(b) of Act 98 of 1992[1] and unless there is compliance with Section 508(c) and
(d) of Act 98 of 1992[2] and the provisions of this article.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992,[1] the Borough 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 agreed
upon by the named insured and the insuring agent equals or exceeds
60% of the aggregate limits of liability on all fire policies governing
the building restructure, the following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Borough in the aggregate of $1,000 for
each $20,000 of a claim and for each fraction of that amount of a
claim, this section to be applied such that if the claim is $20,000
or less, the amount transferred to the Borough 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 Borough 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 designated officer shall return
the amount of funds transferred to the Borough in excess of the estimate
to the named insured, if the Borough has not commenced to remove,
repair or secure the building or other structure.
E.
Upon receipt of the proceeds under this section, the Borough shall
do the following:
(1)
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 Borough. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing of the building
or any proceedings related thereto; and
(2)
It is the obligation of the insuring agent when transferring the
proceeds to provide the Borough 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 Borough
and notify the named insured that the procedures under this subsection
shall be followed; and
(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 Borough and the required proof of such completion
received by the designated officer, and if the Borough has not incurred
any costs for repairs, removal or securing, the fund shall be returned
to the named insured. If the Borough 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 Borough
shall transfer the remaining funds to the named insured; and
(4)
To the extent that interest is earned on proceeds held by the Borough
pursuant to this section and not returned to the named insured, such
interest shall belong to the 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 the proceeds
are returned.
F.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the 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.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Borough of Mount Union may, by resolution, adopt procedures
and regulations to implement Act 98 of 1992[1] and this article and may, by resolution, fix reasonable
fees to be charged for Borough activities or services provided pursuant
to Act 98 of 1992 and this article, including, but not limited to,
issuance of certificates and bills, performance of inspections and
opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation.
[Adopted 10-3-2018 by Ord. No.
2018-4]
The Borough Secretary (or such others as the Council may designate)
is hereby appointed as the designated officer ("Designated Municipal
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 Mount Union Borough where the amount recoverable for
the fire loss to the structure under all policies exceeds $7,500,
unless the insuring agent is furnished by the Borough 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 article.
A.
Where there are delinquent taxes, assessment, penalties or user charges
against the property ("municipal claims"), or there are expenses which
the Borough has incurred for costs of removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the designed municipal officer shall immediately render
a bill for such work, if not already done. Upon written request of
the named insured specifying 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 designated municipal officer
shall furnish a certificate within 14 days after the request of the
insurer either:
B.
In accordance with Subsection A(2) of this section, the insurer shall transfer to the designated municipal officer an amount from the insurance proceeds sufficient to pay municipal claims and municipal expenses prior to making payment to the named insured, subject to the provisions of § 190-9 hereof.
C.
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992, the Borough
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 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 restructure, the following
procedures must be followed:
(1)
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Borough 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 Borough 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 Borough 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 may submit a contractor's
signed estimate 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 Borough in excess of the
estimate to the named insured, if the Borough has not commenced to
remove, repair or secure the building or other structure.
(5)
Upon receipt of proceeds under this section, the Borough 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 Borough. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Borough
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 Borough 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 Borough 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 Borough and the required proof of such completion
received by the designated officer, and if the Borough has not incurred
any costs for repairs, removal or securing, the fund shall be returned
to the named insured. If the Borough 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 Borough
shall transfer the remaining funds to the named insured; and
(d)
To the extent that interest is earned on proceeds held by the
Borough pursuant to this section, such interest shall belong to the
Borough.
(6)
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Borough and the named
insured from entering into an agreement that permits the transfer
of funds to the named insured of some other reasonable disposition
of the damaged property has been negotiated.
An insurance company, association or exchange making payment
of policy proceeds under this article for delinquent taxes or structural
removal liens or removal expenses insured by the Borough shall have
full benefit of such payment including all rights of subrogation and
of assignment.
The Council may by resolution adopt procedures and regulations
to implement Act 98 of 1992 and this article and may by resolution
fix reasonable fees to be charged for municipal activities or services
provided pursuant to Act 98 of 1992 and this article; including but
not limited to issuance of certificates and bills, performance of
inspections and opening separate fund accounts.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation together with legal costs and reasonable attorneys fees
of not less than 5% of the amount due, as incurred by the Borough
in enforcement of this article.
The provisions of this article shall be severable and, if any
of the provisions hereof shall be held to be invalid or unenforceable,
the remaining provisions of this article shall remain in effect.
This article shall be liberally construed to accomplish its
purpose to deter commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration,
and to assure the payment of municipal expenses.
All ordinances or parts of ordinances conflicting with any of
the provisions of this article are hereby repealed insofar as same
affects this article. If any sentence, clause, section and/or provision
of this article is deemed to be in conflict with state law, the terms
of any such state law shall supersede the language and provisions
of this article and such state law shall control. Any conflict with
state law shall no invalidate this article nor be a basis for failing
to pay any and all municipal expenses. Act 93 of 1994 is incorporated
herein and shall be the basis for payment of all municipal expense
if this article is rendered null and void, in whole or in part.
This article shall become effective upon adoption.
The Designated Municipal Officer shall transmit a certified
copy of this article promptly to the Pennsylvania Department of Community
and Economic Development or to the successor agency of the Pennsylvania
Department of Community and Economic Development.
