[HISTORY: Adopted by the Borough Council of the Borough of Perkasie
as indicated in article histories. Amendments noted where applicable.]
[Adopted 6-15-1998 by Ord.
No. 809]
The Secretary of the Borough of Perkasie is hereby designated to perform
all duties assigned by 40 P.S. § 638 in connection with the issuance
of fire loss certifications and collection of funds paid by insurers in settlement
of outstanding municipal taxes and claims against fire damaged buildings or
structures located within Perkasie Borough for the collection of funds paid
by insurers as security against the total cost incurred by the Borough for
the removing, repairing or securing of fire-damaged buildings and structures
located within the Borough of Perkasie; for the establishment and administration
of a separate account for deposit of such security funds; and for the distribution
of such security funds.
A.
The Perkasie Borough Secretary is hereby authorized to certify the amount of delinquent taxes, assessments, penalties or user charges that are outstanding against a building or other structure located in Perkasie Borough where the amount recoverable for the fire loss to the structure under all insurance policies exceeds $7,500 and to receive such funds from insurers in payment for such delinquent taxes and municipal claims in accordance with the procedure established by Subsection B.
B.
Written certification. Upon written request of the named
insured specifying the tax description of the property; the name and address
of the insurance company, association or exchange (hereinafter "insurance
company") and the date agreed upon between the named insured and the insurance
company, as the date of the receipt of the loss report of the claim; the Borough
Secretary shall furnish the insurance company either of the following within
14 days:
(1)
A certificate or, at the discretion of the Borough Secretary,
a verbal notification which shall be confirmed, in writing, by the insurer
to the effect that, as of the date specified in the request, there are no
delinquent taxes, assessments, penalties or user charges against the property
and that, as of the date of the Borough Secretary's certificate or verbal
notification, no Borough department has certified any amount as total costs
incurred by Perkasie Borough for the removal, repair or security of a building
or other structure on the property; or
(2)
A certificate and bill showing the amount of delinquent
taxes, assessments, penalties and user charges against the property as of
the date specified in the request that have not been paid as of the date of
the certificate and also showing, as of the date of the Borough Secretary's
certificate, the amount of the total costs, if any, certified by any Borough
department to the Borough Secretary for the removal, repair or securing of
a building or other structure on the property.
When the loss agreed to by the named insured and the company equals
or exceeds 60% of the aggregate limits of liability on all fire policies covering
the building or other structure, the insurance company shall transfer from
the insurance proceeds to the Borough Secretary in the aggregate $2,000 for
each $15,000 and each fraction of that amount of a claim. 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 foregoing transfer
formula, the insurance company shall transfer from the insurance proceeds
the amount specified in the estimate. The named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure after the transfer. The Borough Secretary shall then return
the amount of the fund 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.
A.
Receipt of funds. When transferring the funds as required by § 103-3, supra, an insurance company shall provide the Borough with the name and address of the named insured. The Borough Secretary shall place the funds in a separate account to be used solely as security against the total cost of removing, repairing or securing incurred by the Borough. The Borough shall:
(1)
Place all funds in a separate account to be used solely
as security against the total cost of removing, repairing or securing incurred
by the Borough;
(2)
Contact the named insured as to the procedures under
this section;
(3)
Certify to the named insured and the insurance company
that the funds have been received.
B.
Return of funds. The funds shall be returned to the named
insured as follows:
(1)
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. Any excess funds shall be returned to the named insured.
(2)
If the Borough has not incurred any costs, the funds
shall be returned to the named insured when repairs, removal or securing have
been completed and the required proof received by the Borough.
C.
Nothing in this section 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 disposition of the
property has been negotiated. Such an agreement must be approved by resolution
adopted by Borough Council.
D.
Nothing in this section shall be construed to make an
insurance company liable for any amount in excess of proceeds payable under
its insurance policy or for any other act performed pursuant to this section
or to make a municipality or public official 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 section.
E.
An insurance company making payments of policy proceeds
under this section for delinquent taxes or structure removal liens or removal
expenses incurred by a municipality shall have a full benefit of such payment,
including all rights of subrogation and assignment.
F.
An exact copy of this article shall be filed with the
Department of Community Affairs and Economic Development together with the
name, position and phone number of the municipal official responsible for
compliance with this section.
G.
This article 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.
