[HISTORY: Adopted by the Borough Council of the Borough of
Hanover 2-28-2024 by Ord. No. 2361. Amendments noted where applicable.]
A.
No insurance company, association of exchange (hereinafter "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 Hanover, York County, Pennsylvania where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the insurer is furnished by the Treasurer of the Borough with
a Certificate pursuant to Section 508(b) of the Insurance Company
Law of 1921 as amended by Act 98 of 1992 and Act 93 of 1994 (collectively
the "Act") and unless there is compliance with the procedures set
forth in Sections 508(c) and 508(d) of the Act.
B.
Delinquency.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Borough has incurred as costs for removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the Secretary of the Borough shall immediately render
a bill for such work, if not already done. Upon written request of
the named insured specifying the description of the party, the name
and address of the insurer the date of receipt by the insurer of a
loss report of the claim, the Treasurer of the Borough shall furnish
a certificate within 14 days after the request to the insurer either:
(2)
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a Certificate and bill pursuant to Subsection B(1) of this section, the insurer shall transfer to the Secretary of the Borough an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section or when the Borough Treasurer has issued a Certificate described in Subsection B(1)(a) indicating that there are no municipal claims or municipal expenses against the property, 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 fire policies covering the building or structure, the following procedures must be followed:
(1)
The insurer shall transfer from the insurance proceeds to the Borough
Treasurer, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
(2)
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Borough, a contractor's
signed estimate of the cost 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 Secretary of the Borough of Hanover from the insurance proceeds
the amount specified in the estimate. If there is more than one insurer,
the transfer of proceeds shall be on a pro rata basis by all insurers
insuring the building or other structure.
(3)
Upon receipt of the above-described portion of the insurance proceeds
the Secretary of the Borough of Hanover, York County, Pennsylvania,
shall do the following:
(a)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Borough to
be required in removing, repairing or securing the building or structure
as required by this chapter. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing or any proceedings
related thereto.
(b)
Mail to the named insured at the address received from the insurer
a notice that the proceeds have been received by the Borough and that
the procedures under this subsection shall be followed.
(c)
After the transfer, the named insured may submit to the Borough
of a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Borough
Secretary shall, if such estimates deemed by the Borough Secretary
to be reasonable return to the insured the amount of the funds transferred
to the Borough of in excess of that amount required to pay the municipal
expenses; provided, however, that the Borough has not commenced to
remove, repair or secure the building or other structure in which
case the Borough will complete the work.
(d)
Pay to the Secretary of the Borough for reimbursement to the
Borough General Fund, the amount of the municipal expenses paid by
the Borough.
(e)
Pay the remaining balance in the fund without interest to the
named insured within 60 days of a receipt of a certificate issued
by the Borough Secretary that the repair, removal or securing of the
building or other structure has been completed in accordance with
all applicable codes and regulations of the Borough.
(f)
Nothing in this section shall be construed to limit the ability
of the Borough to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this chapter, or
to insurance proceeds, by an action at law or in equity to enforce
the Borough Codes or to enter into an agreement with the named insured
with regard to such other disposition of the proceeds as the Borough
may deem responsible.
Nothing in this chapter shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
proceeds payable under its insurance policy or for any other act performed
pursuant to this chapter or to make the Borough or any public official
of the Borough an insured under a policy of insurance or to create
an obligation to pay delinquent property taxes or unpaid removal liens
or expenses other than as provided in this chapter.
An insurance company, association or exchange making payment
of policy proceeds under this chapter for delinquent taxes or structural
removal liens or removal expenses incurred by the Borough of Hanover
shall have full benefit of such payment including all rights of subrogation
and of assignment.
This chapter shall be liberally construed to accomplish its
purpose to deter the commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration.
The Secretary of the Borough of shall transmit a certified copy
of this chapter promptly to the Pennsylvania Department of Community
and Economic Development and/or any other governmental agency as is
required by law.
Any owner of property, any named insured or insurer who violates
the provisions of this chapter or who shall fail to comply with any
of the requirements hereof shall be sentenced upon conviction thereof
to pay a fine not greater than $1,000 plus court costs and the reasonable
attorney's fees incurred by the Borough in the enforcement proceedings
(inclusive of any equity proceedings), and in default of payment of
said fine and costs/fees to a term of imprisonment to the extent allowed
by law for the punishment of a summary offense. Each day in which
an offense shall continue shall be deemed a separate offense. In addition
to the above, the Borough may enforce this chapter in equity in the
Court of Common Pleas of York County, Pennsylvania.
The provisions of this chapter are severable. If any sentence,
clause or section of this chapter is for any reason found to be unconstitutional,
illegal or invalid, such decision shall not affect the validity of
any of the remaining provisions of this chapter. It is hereby declared
as a legislative intent that this chapter would have been adopted
had such unconstitutional, illegal or invalid provision been included
herein.
This chapter shall take effect and be in full force and effect
in accordance with Section 3301.3 (b) of the Borough Code.[1]
[1]
Editor's Note: See 8 Pa.C.S.A. § 3301.1(b).
This chapter shall become a part of the Code of Ordinances of
the Borough of Hanover, York County, Pennsylvania, as amended, upon
enactment. The Code of Ordinances of the Borough of Hanover, York
County, Pennsylvania, as amended, shall be and remain unchanged and
in full force and effect except as amended, supplemented and modified
by this chapter.
Any ordinances, or parts of ordinances, in conflict herewith
be and the same are hereby repealed to the extent of the conflict.
