[HISTORY: Adopted by the Board of Commissioners of the Township
of Muhlenberg as indicated in article histories. Amendments noted
where applicable.]
[Adopted 1-16-1995 by Ord. No. 294 (Ch.
83, Art. I, of the 1982 Code)]
The Secretary/Administrator of the Township
of Muhlenberg, Berks County, Pennsylvania, or such official's designee
is hereby appointed as the designated officer who is authorized to
carry out all responsibilities and duties stated herein.
[Amended 3-20-1995 by Ord. No. 299]
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 Township of Muhlenberg, Berks County,
Pennsylvania (hereinafter the "municipality") 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 Municipal 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 article.[1]
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 3-20-1995 by Ord. No. 299]
Where, pursuant to Section 508(b)(1)(i) of Act
98 of 1992,[1] the Municipal 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 covering
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 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
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 municipality from
the insurance proceeds the amount specified in the estimate.
C.
The transfer of
proceeds shall be on pro rate 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 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.
E.
Upon receipt of
proceeds under this section, the municipality 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 municipality.
Such costs shall include without limitation any 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;
(2)
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 named insured, the designated officer shall contact the named
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;
(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 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
(4)
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 the proceeds are returned.
F.
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.
[1]
Editor's Note: See 40 P.S. § 638.
The Board of Commissioners of the municipality
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[1] 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.
