[HISTORY: Adopted by the Borough Council of the Borough of Mount Holly Springs as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-12-2005 by Ord. No. 2005-03]
The legislative intent, legal authority and background of this article are as follows:
A. 
The Borough of Mount Holly Springs is a duly organized and existing governmental unit of the Commonwealth of Pennsylvania.
B. 
As such, it is a municipality as defined in the Act of May 17, 1921, P.L. 682, No. 284, known as the "Insurance Company Law of 1921," added July 9, 1992, P.L. 678, No. 98, as amended October 13, 1994, P.L. 609, No. 93, 40 P.S. § 638 (herein the "Act").
C. 
The Borough Council intends to ensure the payment of delinquent taxes, assessments, penalties and user charges out of the payment by insurers of fire loss claims involving structures and buildings within Mount Holly Springs Borough.
D. 
The Borough Council desires to insure the payment of costs incurred by the Borough in the removal, repair or securing of buildings or structures damaged by fire out of fire loss claims paid by insurers for structures and buildings within Mount Holly Springs Borough.
E. 
It is the purpose of this article to deter the commission of arson and related crimes, to discourage the abandonment of property and to prevent urban blight and deterioration.
F. 
The Borough Council has determined that it is in the best interest of its citizens that the economic consequences of fire damage to buildings and structures in the Borough not be borne by it, nor be paid out of its financial resources.
In the interpretation and construction of this article, the following definitions shall control:
ASSOCIATION
Individuals, partnerships or associations of individuals authorized to engage in the business of insurance in the Commonwealth of Pennsylvania as insurers on the Lloyd's Plan.
BOROUGH COUNCIL
The duly elected or appointed governing body of the Borough of Mount Holly Springs.
BUILDING
Any enclosed or open structure.
COMPANY
Incorporated insurance companies and corporations possessing the power to insure owners of real property, mortgages and others interested in real property from loss, whether incorporated under the laws of this commonwealth or of any other state, territory or district or under the laws of any foreign country.
EXCHANGE
Individuals, partnerships and corporations authorized by the laws of the Commonwealth of Pennsylvania to exchange with each other interinsurance or reciprocal insurance contracts.
FIRE LOSS CLAIM
Any claim arising out of fire damage to a building or structure situated in the Borough of Mount Holly Springs where the amount recoverable for the fire loss, under all applicable coverages, exceeds $7,500.
INSURER
Any person, association, company, exchange, foreign stock company, mutual company or other entity authorized by the Commonwealth of Pennsylvania to provide fire and marine insurance in the Borough of Mount Holly Springs.
MUNICIPAL OFFICER
The Secretary of Mount Holly Springs Borough.
MUNICIPALITY
The Borough of Mount Holly Springs (Mount Holly Springs Borough).
STRUCTURE
Any man-made object having an ascertainable stationary location on or in land or water, whether or not affixed to the land. Without limitation of the foregoing, this term shall include concrete sidewalks, concrete slabs, concrete curbs, parking lots and other paved surfaces.
A. 
No insurer doing business in the Commonwealth of Pennsylvania shall pay a fire loss claim of a named insured unless the insurer and the named insured comply with the provisions of this article.
B. 
The Municipal 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 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.
(2) 
A certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified in the request that have not been paid as of the date of the certificate. 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 Mount Holly Springs Borough under applicable law.
C. 
Upon the receipt of a certificate pursuant to § 311-4B(1) of this section, the insurer shall pay the claim of the named insured in accordance with the policy terms.
D. 
Upon the receipt of a certificate and bill pursuant to § 311-4B(2) of this section, the insurer shall return the bill to the Municipal Officer and transfer to the Municipal 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 of Mount Holly Springs 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 Mount Holly Springs Borough to recover any deficiency.
The Borough Council may, by resolution, adopt addition procedures and regulations to implement this article and may, by resolution, fix reasonable fees to be charged for municipal activities or services provided pursuant to this article, including, but not limited to, issuance of certificates and bills.
A. 
No insurer doing business in the Commonwealth of Pennsylvania shall pay a fire loss claim of a named insured unless the insurer and the named insured comply with the provisions of this article.
B. 
The Municipal 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 that, as of the date specified in the request, Mount Holly Springs Borough has not certified any amount as total costs incurred by the Borough of Mount Holly Springs for the removal, repair or securing of a building or other structure on the property.
(2) 
A certificate and bill showing the amount as of the date specified in the request that, as of the date of the Municipal Officer's certificate, the amount of the total costs, if any, certified to the Municipal Officer that have been incurred by Mount Holly Springs Borough for the removal, repair or securing of a building or other structure on the property. For the purposes of this provision, Mount Holly Springs Borough shall provide to the Municipal 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 Municipal Officer's certificate.
After full compliance with the requirements of § 311-8 of this article, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all applicable fire policies, the following procedures shall be followed:
A. 
The insurer shall transfer from the insurance proceeds to the Municipal Officer the aggregate of $2,000 for each $15,000 or a claim and for each fraction of that amount of a claim, provided:
(1) 
This section is to be applied such that if the claim is $15,000 or less, the amount transferred to Mount Holly Springs Borough shall be $2,000.
(2) 
That, if at that 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 Mount Holly Springs Borough from the insurance proceeds the amount based upon the estimate.
B. 
The transfer of proceeds shall be on a pro rata basis by all insurers and on all applicable policies. Policy proceeds remaining after the transfer to Mount Holly Springs Borough shall be disbursed in accordance with the policy terms.
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 Municipal Officer shall return to the named insured the amount of the funds transferred to Mount Holly Springs Borough in excess of the estimate, provided that Mount Holly Springs Borough has not commenced to remove, repair or secure the building or other structure.
Upon the receipt of proceeds under this section, Mount Holly Springs Borough shall do the following:
A. 
The Municipal Officer shall place the proceeds in a separate fund to be used solely as security against the total costs which are incurred by Mount Holly Springs Borough for removing, repairing or securing the building or structure. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by Mount Holly Springs Borough in connection with such removal, repair or security of the building or any proceedings related thereto.
B. 
At the time of transfer of such proceeds, the insurer shall provide Mount Holly Springs Borough with the name and address of the named insured. Upon receipt of the transferred funds and the name and the address of the named insured, the Municipal Officer shall contact the named insured, certify that the proceeds have been received by Mount Holly Springs Borough and notify the named insured that the procedures under this section shall be followed.
C. 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of Mount Holly Springs Borough and the required proof of such completion received by the Municipal Officer and if Mount Holly Springs Borough has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If Mount Holly Springs 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, Mount Holly Springs Borough shall transfer the remaining funds to the named insured.
D. 
To the extent that interest is earned on proceeds held by Mount Holly Springs Borough pursuant to this section, and retained by it, such interest shall belong to Mount Holly Springs Borough. To the extent that proceeds are returned to the named insured, interest earned or such proceeds shall be distributed to the named insured at the time that the proceeds are returned.
Nothing in this article shall be construed to limit the ability of Mount Holly Springs Borough to recover any deficiency. Furthermore, nothing in this article shall be construed to prohibit Mount Holly Springs Borough and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some reasonable disposition of the damaged property has been negotiated.
The Borough Council may, by resolution, adopt additional procedures and regulations to implement this article and may, by resolution, fix reasonable fees to be charged for municipal activities or services provided pursuant to this article, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.
Any person who shall violate any provisions of this article shall, upon conviction thereof, be sentenced to pay a fine of not more than $1,000 and costs of prosecution and, in default of payment of such fine and costs, to imprisonment for not more than 30 days.
The provisions of this article shall be severable. If any of its provisions shall be held to be unconstitutional, illegal or otherwise invalid, that decision shall not affect the validity of any of the remaining provisions of this article or any other ordinance of Mount Holly Springs Borough.