[Ord. 2133, passed 1-4-1993]
(a) 
The purpose of this section is to deter the commission of arson and related crimes, to discourage the abandonment of property, to prevent urban blight and deterioration and to provide a means of collecting delinquent taxes, assessments, penalties, user charges and costs which exist against property incurring a fire loss.
(b) 
No insurance company, association or exchange doing business in this Commonwealth shall pay a claim of a name insured for fire damage to a structure located within the Municipality where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000, unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection (c) hereof and unless there is compliance with the procedures set forth in Subsections (d) and (e) hereof.
(c) 
The Finance Director shall, upon the written request of the named insured specifying the tax description of the property and the date agreed upon by the insurance company, association or exchange and the named insured as the date of the receipt of a proof of loss of the claim, furnish the named insured with either of the following, which shall then be supplied by the named insured to the insurance company, association or exchange:
(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 owed to the Municipality, or costs incurred by the Municipality for the removal, repair or securing of a building or other structure on the property as of the date of the Finance Director's certificate; or
(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, and also showing, as of the date of the Finance Director's certificate, the amount of the total costs, if any, certified to the Finance Director that have been incurred by the Municipality for the removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, the Municipality shall certify to the Finance Director the total amount, if any, of such costs.
Upon the receipt of a certificate pursuant to Subsection (c)(1) hereof, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the Municipality shall follow the procedures set forth in Subsection (d) and (e) hereof.
Upon the receipt of a certificate and bill pursuant to Subsection (c)(2) hereof, the insurance company, association or exchange shall return the bill to the Finance Director and transfer to the Finance Director an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
(d) 
When the loss agreed to between the named insured and the insurance company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds to the Finance Director in the aggregate one $1,000 for each $20,000 of a claim, and each fraction of that amount; or if, at the time of a proof of loss agreed to between the named insured and the insurance company, association or exchange, the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. The transfer of proceeds shall be on a pro rata basis by all insurance companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to the Municipality shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to the Municipality shall be disbursed in accordance with the policy terms. The named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure after the transfer, and the Finance Director shall return the amount of the fund 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 by the Municipality as authorized by this section, the Finance Director shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Municipality. When transferring the funds as required in Subsection (d) hereof, an insurance company, association or exchange shall provide the Municipality, with the name and address of the named insured, whereupon the Municipality 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. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Finance Director, if the Municipality has not incurred any costs for repairs, removal or securing. 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. If excess funds remain, the Municipality shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Municipality to recover any deficiency. Further, 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.
(f) 
Nothing in this section shall be construed to make an insurance company, association or exchange liable for any amount in excess of proceeds payable under its insurance policy of for any other act performed pursuant to this section, to make the Municipality or a public official an insured under a policy of insurance or to create an obligation to pay delinquent property taxes, unpaid removal liens or expenses other than as provided in this section.