Borough of Moosic, PA
Lackawanna County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Moosic as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 154.
[Adopted 3-9-1993 by Ord. No. 7-1993]

§ 170-1 Intent.

In certain fire losses, the insurance company, association or exchange shall transfer insurance proceeds to a designated officer of the Borough as a portion of the insurance proceeds to be held as security against the total cost of removing, repairing or securing the damaged building, providing for fees, penalties for violation of this article and setting forth procedures and requirements pertaining to such insurance proceeds pursuant to Act 98 of 1992.[1]
[1]
Editor's Note: See 40 P.S. § 638 et seq.

§ 170-2 Procedures and requirements.

Procedures and requirements pursuant to Act 98 of 1992 are hereby as follows:
A. 
The Tax Collector of the Borough of Moosic is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
B. 
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 Moosic where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the named insured or insuring agent is furnished by the Tax Collector of the Borough of Moosic with a municipal certificate pursuant to Section 508(B) of Act 98 of 1992 and unless there is compliance with Section 508(C) and (D) of Act 98 of 1992 and the provisions of this article. Where, pursuant to Section 508(B)(1)(I) of Act 98 of 1992, the Tax Collector issues a certificate indicating that there are no 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 is agreed upon the named insured and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building restructure, the following procedures must be followed:[1]
(1) 
The insuring agent shall transfer from the insurance proceeds to the Tax Collector of the Borough of Moosic in the aggregate sum 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 of Moosic shall be $2,000; or
(2) 
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 in an amount less than the amount calculated under the foregoing transfer formula, the insuring agent shall transfer to the Borough of Moosic from the insurance proceeds the amount specified in the estimate.
(3) 
The transfer of proceeds shall be on 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 Tax Collector of the Borough of Moosic shall return the amount of the funds transferred to the Borough of Moosic in excess of the estimate to the named insured, if the Borough of Moosic has not commenced to remove, repair or secure the building or other structure.
(5) 
Upon receipt of proceeds under this section, the Borough of Moosic shall do the following:
(a) 
The Tax Collector of the Borough of Moosic shall place the proceeds in the 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 of Moosic; such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the municipality in connection with such removal, repair or securing of the building or any proceedings related thereto; and
(b) 
It is the obligation of the insuring agent when transferring the proceeds to provide the Borough of Moosic 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 designated officer shall contact the named insured, certify that the proceeds have been received by the Borough of Moosic and notify the named insured that the procedures under this subsection shall be followed; and
(c) 
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 of Moosic and the required proof of such completion received by the Tax Collector of the Borough of Moosic, and if the Borough of Moosic has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured; if the Borough of Moosic has incurred costs for repairs, removal or securing of the building or other structure, the cost shall be paid from the fund, and if excess funds remain, the Borough of Moosic shall transfer the remaining funds to the named insured; and
(d) 
To the extend that interest is earned on proceeds held by the Borough of Moosic pursuant to this section, and not returned to the named insured, such interest shall belong to the Borough of Moosic. To the extent that the 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.
(6) 
Nothing in this article shall be construed to limit the ability of the Borough of Moosic to recover any deficiency. Furthermore, nothing in this article shall be construed to prohibit the Borough of Moosic and the named insured from entering into an agreement that permits the transfer of funds to the named insured or some other reasonable disposition of the damaged property has been negotiated.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 170-3 Fees.

The governing body may fix reasonable fees to be charged for Borough activities of certificates and bills, performance of inspections and opening separate fund accounts.

§ 170-4 Violations and penalties.

An owner of property, any named insured or any insuring agent who violates this article shall be subject to a penalty of up to $1,000 per violation, plus costs of prosecution, and, in default of payment of such fine and costs, to imprisonment for not more than 30 days.