[HISTORY: Adopted by the Borough Council of the Borough of
East Greenville as indicated in article histories. Amendments noted
where applicable.]
[Adopted 4-1-2019 by Ord. No. 2019-04]
The Borough Secretary 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 (hereinafter "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,[1] as amended, and unless there is compliance with Section
508(C) of Act 98 of 1992, as amended, and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992, as
amended, the Municipal Treasurer issues a certificate indicating that
there are not 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 or structure, 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 rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.
After the transfer, the named insured shall submit a contractor's
signed estimate within 60 days 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 all reasonable and customary
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; and
(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 name 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; 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 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 that 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.
The Council of the Borough may by resolution adopt procedures
and regulations to implement Act 98 of 1992,[1] as amended, 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, as amended, 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.
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.
All ordinances or parts of ordinances conflicting with any of
the provisions of this article are hereby repealed insofar as some
affect this article.
This article shall become effective immediately.
