[HISTORY: Adopted by the Borough Council of the Borough of
Plymouth as indicated in article histories. Amendments noted where
applicable.]
[Adopted 10-6-1998 by Ord. No. 4-1998]
A.
The Administrator of the Borough of Plymouth or such official's
designee (hereinafter, the "Borough Officer") is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties of the Borough stated herein.
B.
A "fire loss" or claim for fire damage is defined as any loss occurring
after the effective date of this article and covered under a policy
of fire insurance, including any endorsements or riders to the policy.
A.
No insurance company, association or exchange (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 the
Borough of Plymouth (hereinafter the "Borough") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the Insurer is furnished by the Borough Officer with a municipal
certificate pursuant to Section 508(b)[1] and unless there is compliance with Sections 508(c) and
(d)[2] and the provisions of this article. The Borough has simultaneously
with the adoption of this article adopted a separate companion Ord.
No. 136, which provides for the payment of delinquent taxes to the
Borough from proceeds of certain fire loss claims.
B.
After full compliance with the requirements of Section 508(b)(1)(i)[3] and Ord. No. 136, a companion ordinance adopted simultaneously
with the adoption of this article, the Insurer shall pay the claim
of the named insured; provided however, that if the loss as agreed
upon by the named insured and the Insurer equals or exceeds 60% of
the aggregate limits of liability on all fire policies covering the
building structure, the following procedures shall be followed:
(1)
The Insurer shall transfer from the insurance proceeds to the Borough
Officer the aggregate of $2,000 for each $15,000 of a claim and for
each fraction of that amount of a claim, provided that:
(a)
This section is to be applied such that if the claim is $15,000 or
less, the amount transferred to the Borough shall be $2,000; and
(b)
If, at the time of a loss report, the named insured has submitted
a contractor's signed 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 from the insurance proceeds the amount
based upon the estimate.
(2)
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
Policy proceeds remaining after the transfer to the Borough shall
be disbursed in accordance with the policy terms.
[3]
Editor's Note: See now 40 P.S. § 638(b)(1)(i).
C.
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.
D.
Upon receipt of proceeds under this section, the Borough shall do
the following:
(1)
The Borough Officer shall place the proceeds in the 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 other proceedings related thereto; and
(2)
It is the obligation of the Insurer 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 Borough 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 Borough 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 retained by it, 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.
E.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
article 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.
The Borough of Plymouth may by resolution adopt procedures and
regulations to implement Section 508[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508[2] 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 Insurer who
violates this article shall be subject to a penalty of up to $1,000
per violation.
The provisions of this article shall be severable and, if any
of the provisions hereof shall be invalid or unenforceable, the remaining
provisions of this article shall remain in effect.
All ordinances or parts of ordinances conflicting with any of
the provisions of this article are hereby repealed insofar as same
affects this article.
[Adopted 10-6-1998 by Ord. No. 5-1998]
A.
The Tax Collector of the Borough of Plymouth or such official's
designee (hereinafter, the "Borough Officer") is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties of the Borough stated herein.
B.
The Tax Collector is hereby designated to certify as to all matters
relating to taxes. The Borough Secretary is hereby designated to certify
to all other matters required under this article.
C.
A "fire loss" or claim for fire damage is defined as any loss occurring
after the effective date of this article and covered under a policy
of fire insurance, including any endorsements or riders to the policy.
A.
No insurance company, association or exchange (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 the
Borough of Plymouth (hereinafter the "Borough") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the Insurer and the named insured comply with the provisions
of Section 508(b)[1] and the provisions of this article. Also, compliance with
the Fire Insurance Escrow Ordinance which is being adopted as a companion
ordinance simultaneously with the adoption of this article is required.
[1]
Editor's Note: See now 40 P.S. § 638(b).
B.
The Borough Officer shall, upon the written request of the named
insured specifying the tax description of the property, name and address
of the Insurer and the date agreed upon by the Insurer and the named
insured as the date of the receipt of a loss report of the claim,
furnish the insurer either of the following within 14 working days
of the request:
(1)
A certificate, or at the discretion of the Borough, a verbal notification
which shall be confirmed, in writing, by the Insurer to the effect
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 Borough Officer's certificate
or verbal notification, the Borough has not certified any amount as
total costs incurred by the Borough for the removal, repair or securing
of a building or other structure on the property; or
(2)
A certificate and bill showing the amount of delinquent taxes, assessments,
penalties and use charges against the property as of the date specified
in the request that have not been paid as of the date of the certificate
and also showing, as of the date of the Borough Officer's certificate,
the amount of the total costs, if any, certified to the Borough Officer
that have been incurred by the Borough for the removal, repair or
securing of a building or other structure on the property. For the
purposes of this clause, the Borough shall provide to the Borough
Officer the total amount, if any, of such costs, if available, or
the amount of costs known to the Borough at the time of the Borough
Officer's certificate.
(3)
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 Borough under applicable law.
C.
Upon the receipt of a certificate pursuant to § 110-9A of this article, the Insurer shall pay the claim of the named insured in accordance with the policy terms. Also, compliance with the Fire Insurance Escrow Ordinance which is being adopted as a companion ordinance simultaneously with the adoption of this article is required.
D.
Upon the receipt of a certificate and bill pursuant to § 110-9B of this article, the insurer shall return the bill to the Borough Officer and transfer to the Borough Officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill, or the full amount of the insurance proceeds, whichever is the lesser amount. The Borough shall receive the amount and apply or credit it to payment of the items shown in the bill.
E.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency.
A.
The transfer of proceeds to the Borough Officer shall be on a pro
rata basis by all Insurers with applicable policies of insurance providing
protection for fire loss.
B.
The Borough of Plymouth may by resolution adopt additional procedures
and regulations to implement Section 508[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508[2] and this article, including, but not limited to, issuance
of certificates and bills.
Any owner of property, any named insured or any Insurer who
violates this article shall be subject to a penalty of up to $1,000
per violation.
The provisions of this article shall be severable and, if any
of the provisions hereof shall be invalid or unenforceable, the remaining
provisions of this article shall remain in effect.
All ordinances or parts of ordinances conflicting with any of
the provisions of this article are hereby repealed insofar as same
affects this article. It is specifically intended to repeal Ord. No.
130, enacted April 11, 1994, upon this article becoming effective.
