[Amended 5-18-1995 by Ord. No. 1199]
The Code Enforcement Officer of the Borough of Clearfield is
hereby appointed as the designated officer who is authorized to carry
out all responsibilities and duties set forth within this chapter.
Said Borough Code Enforcement Officer shall be the primary official
designated and authorized to carry out the responsibilities and duties
hereunder. In the absence of the Borough Code Enforcement Officer,
the Borough Secretary of the Borough of Clearfield shall be designated
as the secondary designee who is also appointed as a designated officer
who is authorized to carry out all responsibilities and duties stated
hereunder.
[Amended 5-18-1995 by Ord. No. 1199]
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 of Clearfield (hereinafter the "Borough")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the named insured or insuring
agent is furnished by the Borough 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 chapter.
Where pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Borough 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 as 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 other structure, the following procedures must be
followed:
A. The insuring agent shall transfer from the insurance proceeds to
the Borough Secretary in the aggregate of $1,000 for each $20,000
of a claim and for each fraction of that amount of a claim, this section
to be applied such that if the claim is $20,000 or less, the amount
transferred to the Borough shall be $1,000; 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 Borough 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 may submit a contractor's signed
estimate of the costs of removing, repairing or securing the building
or other structure, and the Borough Secretary 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.
E. Upon receipt of proceeds under this section, the Borough shall do
the following:
(1) The Borough Secretary 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 proceeding related thereto.
(2) It is the obligation of the insuring agent 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 Secretary 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.
(3) When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and order of the Borough and the required proof of such completion
received by the Borough Secretary 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.
(4) To the extent that interest is earned on proceeds held by the Borough
pursuant to this section, which proceeds are not returned to the named
insured, such interest shall belong to the Borough. Any interest earned
on proceeds that are returned to the named insured 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 Borough to recover any deficiency. Furthermore, nothing in this
subsection 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 Clearfield Borough Council may by resolution adopt procedures
and regulations to implement Act 98 of 1992 and this chapter and may by resolution fix reasonable
fees to be charged for Borough activities or services provided pursuant
to Act 98 of 1992 and this chapter; 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 insuring agent
who violates this chapter shall be subject to a penalty of up to $1,000
per violation.