[HISTORY: Adopted by the Borough Council of the Borough of Dravosburg
as indicated in article histories. Amendments noted where applicable.]
[Adopted 11-22-2005 by Ord. No. 05-06]
The Borough Treasurer, or such official's designee, is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated in this article.
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 Dravosburg (hereinafter "Borough") 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 Borough Treasurer with a municipal certificate pursuant
to Section 508(B) of Act 98 of 1992, as amended, and unless there is compliance
with Section 508(C) of Act 98 of 1992, as amended, and the provisions of this
article.
Where pursuant to Section 308(B)(1)(I) of Act 98 of 1992, as amended,
the Borough 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.Â
The insuring agent shall transfer from the insurance
proceeds to the Borough Treasurer 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 Borough Treasurer shall be $2,000; or
B.Â
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.Â
The transfer of proceeds shall be on a pro-rata basis
by all companies, associations or exchanges insuring the building or other
structure.
D.Â
After the transfer, the named insured shall submit a
contractor's signed estimate within 60 days of the costs or removing,
repairing or securing the building or other structure, and the Borough Treasurer
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.Â
Upon receipt of proceeds under this section, the Borough
shall do the following:
(1)Â
The Borough Treasurer 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 Borough. Such
costs shall include all reasonable and customary engineering, legal or administrative
costs incurred by the Borough in connection with such removal, repair, or
securing of the building or any proceedings related thereto;
(2)Â
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 Treasurer shall 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)Â
When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the Borough, and the required proof of such completion received
by the Borough Treasurer, and if the Borough has not incurred any costs for
repairs, removal or securing, the funds 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 funds and, if
excess funds remain, the Borough shall transfer the remaining funds to the
named insured; and
(4)Â
To the extent that interest is earned on proceeds held
by the Borough pursuant to this section, and not returned to the named insured,
such interest shall belong to the Borough. 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.Â
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 Council of the Borough of Dravosburg may by resolution adopt procedures
and regulations to implement Act 98 of 1992, as amended, and this article
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.
Any person, business, corporation, insuring agent or other legal entity
who shall violate any provision of this article shall, upon conviction thereof,
be sentenced to pay a fine of not more than $1,000. Each day that a violation
continues shall constitute a separate offense.
