[HISTORY: Adopted by the Borough Council
of the Borough of Millersville as indicated in article histories.
Amendments noted where applicable.]
GENERAL REFERENCES
Fire Company — See Ch.
38.
[Adopted 7-25-1995 by Ord. No. 1995-5]
A. Insureds, their insurance companies, and the hereinafter
designated officer of Millersville Borough are hereby authorized and
directed to comply with the following procedures in the event of fire
damage to or destruction of buildings or other structures in Millersville
Borough:
(1) When the loss agreed to between the named insured
and his insurance company or companies, association or exchange (company)
equals or exceeds 60% of the aggregate limits of liability on all
fire policies covering the building or other structure, the company
shall transfer from the insurance proceeds to designated officers
of Millersville in the aggregate of $2,000 for each $15,000 and each
fraction of that amount of a claim. However, if, at the time the loss
is agreed to between the named insured and the company, the named
insured has submitted a contract or signed estimate of the costs of
removing, repairing or securing the building or other structure, the
company shall transfer from the insurance proceeds the amount specified
in the contract or signed estimate to the designated officer of Millersville
Borough, along with a copy of the contract or signed estimate. The
transfer of proceeds shall be on a pro rata basis by all companies
insuring the building or other structure. After the transfer of funds
to Millersville Borough, the named insured may submit a contract or
signed estimate to Millersville Borough of the costs of removing,
repairing or securing the building or other structure, in which case
the designated officer shall return the amount of the funds already
transferred in excess of the contract or signed estimate to the named
insured, provided that Millersville Borough has not already commenced
to remove, repair or secure the building or other structure.
(2) Upon receipt of the proceeds by Millersville Borough,
the designated officer shall place the proceeds in a separate fund
to be used solely as security against the total cost incurred by Millersville
Borough for removing, repairing or securing the building or other
structure. When transferring the funds, the company shall provide
Millersville Borough with the name and address of the named insured.
Millersville Borough shall communicate with the named insured and
certify that the proceeds have been received by Millersville Borough
and shall notify the named insured that the procedures set forth herein
shall be followed.
(3) When the building or structure has been removed, repaired
or secured and appropriate proof thereof has been received by the
designated officer, if Millersville has not incurred any costs for
the removal, repair or securing, it shall return the funds to the
named insured. If Millersville Borough has incurred costs for removal,
repair or securing of the building or other structure, then those
costs shall be deducted from the fund, and if any excess funds remain,
Millersville Borough shall transfer the remaining funds to the named
insured.
(4) Nothing contained herein shall be construed to limit
the ability of Millersville Borough to recover any deficiency resulting
from the costs incurred by Millersville Borough for the removal, repair
or securing of any building or other structure which has been damaged
by fire. In addition, nothing contained herein shall be construed
to prohibit Millersville Borough and the named insured from entering
into an agreement which permits the transfer of funds to the named
insured if some other reasonable disposition of the damaged property
has been negotiated.
B. The designated officer of Millersville Borough is
the Borough Manager or his designee.