[Ord. 40-1992, eff. 11-24-1992]
The City Treasurer is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
[Ord. 40-1992, eff. 11-24-1992; Am. Ord. 13-1995, eff. 5-4-1995]
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 City where the amount recoverable for the fire loss to the structure under all policies exceeds seven thousand five hundred dollars ($7,500.00), unless the insuring agent is furnished by the Treasurer with a municipal certificate pursuant to Section 508(B) of Act 98 of 1992 as the same may be amended from time to time and unless there is compliance with Section 508(C) and (D) of Act 98 of 1992 and any amendments thereto and the provisions of this Chapter.
Where pursuant to Section 508(B)(1)(i) of Act 98 of 1992, the Treasurer issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against the real property and no costs were incurred by the City for the removal, repair or securing of the property, the insuring agent shall pay the claim of the named insured.
Where pursuant to Section 508(B)(1)(ii) of Act 98 of 1992, the Treasurer issues a certificate indicating there are delinquent taxes, assessments, penalties or user charges against the property or there were costs incurred by the City for the removal, repair or securing of the property, a bill will be submitted with the certificate and the insuring agent will transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Treasurer shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Ord. 40-1992, eff. 11-24-1992; Am. Ord. 13-1995, eff. 5-4-1995]
(a) 
Where the loss agreed upon by the named insured and the insuring agent equals or exceeds sixty (60) percent of the aggregate limits of liability on all fire policies covering the building or other structure, the following procedures shall be followed:
(1) 
The insuring agent shall transfer from the insurance proceeds to the Treasurer in the aggregate two thousand dollars ($2,000.00 for each fifteen thousand dollars ($15,000.00) and each fraction of that amount, of a claim, this section to be applied such that if the claim is fifteen thousand dollars ($15,000.00) or less, the amount transferred to the City shall be two thousand dollars ($2,000.00); or
(2) 
If at the 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 transfer formula set forth in division (1), the insuring agency shall transfer to the City from the insurance proceeds, the amount specified In the estimate.
(3) 
The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure.
(4) 
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 Treasurer shall return the amount of the funds transferred to the City in excess of the estimate to the named insured, provided the City has not commenced to remove, repair, or secure the building or other structure.
(b) 
Upon receipt of the funds, the Treasurer shall place the proceeds in a separate fund, to be known as the Fire Escrow Trust 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 city. The costs shall include, without limitation, any engineering, legal or administrative costs incurred by the City in connection with removal, repair or securing of the building or any proceedings related thereto.
(c) 
It is the obligation of the insuring agent when transferring the proceeds to provide the City 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 Treasurer shall contact the named insured, certify that the proceeds have been received by the City and notify the named insured that the procedures under this Chapter shall be followed.
(d) 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and ordinances of the city, and the required proof of the completion received by the Treasurer, and if the City has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the City 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 City shall transfer the remaining funds to the named insured.
(e) 
Nothing in this Chapter shall be construed to prohibit the City from entering into an agreement with the named insured that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
(f) 
To the extent that interest may be earned on funds held by the City in the Fire Escrow Trust Fund, such interest shall belong to the city.
[Ord. 40-1992, eff. 11-24-1992]
Nothing in this Chapter shall be construed to limit the ability of the City to recover any deficiency.
[Ord. 40-1992, eff. 11-24-1992]
Any owner of property, any named insured or any insuring agency who violates this Chapter shall be subject to a penalty of up to five thousand dollars ($5,000.00) per violation.
[Ord. 40-1992, eff. 11-24-1992]
The provisions of this Chapter shall be severable and, if any of the provisions hereof shall be held to be invalid or unenforceable, the remaining provisions of this Chapter shall remain in effect.