[HISTORY: Adopted by the Borough Council of the Borough of Emsworth
as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-8-2003 by Ord. No. 937]
This article shall be known as the "Borough of Emsworth Fire Escrow
Ordinance."
In the construction of this article, the rules and definitions contained
in this section shall be observed and applied, except when the context clearly
indicates otherwise:
As used in this chapter, the following terms shall have the meanings
indicated:
The Borough of Emsworth.
The Secretary of the Borough of Emsworth.
The Tax Collector of the Borough of Emsworth.
The person authorized to act as the building official, or any assistant
to such person, who enforces the provisions of the Borough Zoning Ordinance.[1]
Shall include loss by explosion or lightning.
Includes any company, association or exchange authorized by the Insurance
Commissioner to transact the business of insurance in the Commonwealth of
Pennsylvania and empowered to issue policies of insurance against loss by
the perils of fire or explosion.
The certificate furnished to a named insured by the Borough of Emsworth
under this article.
A.
Compliance with procedures. No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the Borough of Emsworth where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection B of this section and unless there is compliance with the procedures set forth in Subsections C and D of this section.[1]
B.
Written request by named insured for certificate.
(1)
Issuance of certificate by Tax Collector. The Borough Tax Collector shall, upon the written request of the named insured specifying the tax description of the property and the date agreed upon by the insurance company, association or exchange and the named insured as the date of the receipt of a proof of loss of the claim, furnish the named insured with either of the following certificates specified in Subsection B(1)(a) and (b), which shall then be supplied by the named insured to the company, association or exchange:
(a)
No delinquent taxes or assessments. A certificate 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 Tax Collector's certificate, the Borough of Emsworth
has not certified any amount as total costs incurred by the Borough of Emsworth
for the removal, repair or securing of a building or other structure on the
property; or
(b)
Delinquent taxes or assessments. 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 Tax Collector's certificate, the amount of the total costs, if
any, certified to the Tax Collector that have been incurred by the Borough
of Emsworth for the removal, repair or securing of a building or other structure
on the property. For the purposes of this subsection, the Borough shall certify
to the Tax Collector the total amount, if any, of such costs.
(c)
Administrative fee must accompany written request. All
written requests by a named insured for a certificate shall be accompanied
with a fee of $30 to cover the direct and indirect costs incurred by the Borough
of Emsworth in processing said request. Said fee may hereafter be amended
by ordinance or resolution of the Borough Council of the Borough of Emsworth.
(2)
Receipt of certificate by insurance company.
(a)
Payment of claim to named insured. Upon the receipt of a certificate pursuant to Subsection B(1)(a) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the Borough of Emsworth shall follow the procedures set forth in Subsections C and D of this section.
(b)
Payment of bill to Borough of Emsworth. Upon the receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the Tax Collector and transfer to the Tax Collector an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough of Emsworth shall receive the amount and apply or credit it to payment of the items shown in the bill.
C.
Procedure when loss equals or exceeds 60% of aggregate
limits of liability.
(1)
Payment to designated officer. When the loss agreed to
between the named insured and the company, association or exchange equals
or exceeds 60% of the aggregate limits of liability on all fire policies covering
the building or other structure, the insurance company, association or exchange
shall transfer from the insurance proceeds to the Secretary of the Borough
of Emsworth in the aggregate $2,000 for each $15,000 and each fraction of
that amount of a claim, or, if at the time of proof of loss agreed to between
the named insured and the insurance company, association or exchange 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, association or exchange shall transfer from the insurance
proceeds the amount specified in the estimate.[2]
(2)
Designation of officer to receive insurance proceeds.
The Secretary of the Borough of Emsworth shall receive all insurance proceeds
and manage all escrow funds received under this article.
(3)
Pro rata transfer of proceeds. Transfer of proceeds shall
be on a pro rata basis by all companies, associations or exchanges insuring
the building or other structure.
(4)
Policy proceeds remaining. Policy proceeds remaining
after the transfer to the Borough of Emsworth shall be on a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure.
(5)
Disbursement of excess funds. Policy proceeds remaining
after the transfer to the Borough of Emsworth shall be disbursed in accordance
with the policy terms.
(6)
Contractor's estimate of repairs or removal. 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, and the Borough Secretary shall return the amount of the fund in
excess of the estimate to the named insured if the Borough of Emsworth has
not commenced to remove, repair or secure the building or other structure.
D.
Receipt of proceeds by Borough of Emsworth.
(1)
Establishment of separate escrow funds. The Borough Secretary
shall establish separate escrow funds to be held by the Borough to carry out
the purposes of this article.
(2)
Receipt of proceeds by the Borough of Emsworth. Upon
receipt of proceeds by the Borough of Emsworth as authorized by this section,
the Secretary shall place the proceeds in a separate fund to be used solely
as security against the total cost of removing, repairing or securing incurred
by the Borough.
(3)
Transferring of funds. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide the Borough of Emsworth with the name and address of the named insured, whereupon the Borough of Emsworth shall contact the named insured, certify that the proceeds have been received by the Borough of Emsworth and notify the named insured that the procedures under this subsection shall be followed.
(4)
Inspection of property. After the named insured repairs,
demolishes or secures the property, the Building Inspector shall inspect the
property prior to the Borough of Emsworth releasing any escrow funds. If the
named insured properly repairs, demolishes or secures the property, the Building
Inspector shall notify the Secretary of such completion. If the named insured
fails to properly repair, demolish or secure the property, the Borough may
chose to do so and the funds escrowed shall be applied to the Borough costs
incurred.
(5)
Completion of repairs or removal without cost to the
Borough of Emsworth. The fund shall be returned to the named insured when
repairs, removal or securing of the building or other structure have been
completed and the required proof received by the Secretary if the Borough
has not incurred any costs for repairs, removal or securing.
(6)
Payment of costs to Borough of Emsworth from fund when
Borough of Emsworth has incurred costs. If the Borough of Emsworth 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 Borough
of Emsworth shall transfer the remaining funds to the named insured.
(7)
Insufficient funds to pay Borough of Emsworth costs.
Nothing in this article shall be construed to limit the ability of the Borough
to recover any deficiency by any means now or heretofore permitted by law
or in equity.
(8)
Other reasonable dispositions permitted. 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.
E.
Discharge of insurance obligation. Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with Subsection C of this section is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with Subsection C of this section.
F.
No additional obligations created. Nothing in this article
shall be construed to make an insurance company, association or exchange liable
for any amount in excess of proceeds payable under its insurance policy or
for any other act performed pursuant to this article or to make the Borough
of Emsworth 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 article.
G.
Full benefit of payment. An insurance company, association
or exchange making payments of policy proceeds under this article for delinquent
taxes or structure removal liens or removal expenses incurred by the Borough
of Emsworth shall have a full benefit of such payment, including all rights
or subrogation and of assignment.
H.
Liberal construction. 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.
Any person, partnership or corporation who violates any of the provisions
of this article shall, upon conviction in a summary proceeding by any District
Justice or other court of competent jurisdiction, be sentenced to pay a fine
of not more than $600 for each offense, plus costs of prosecution, and, in
default of payment of such fine and costs, to imprisonment not to exceed 30
days. Nothing contained herein shall be deemed to preclude the Borough of
Emsworth to seek other relief or avail itself of any remedy that may be at
law or in equity to prevent continuing violations of the terms of this article.
This article is adopted to manage fire-blighted properties, to discourage
the abandonment of properties, to prevent urban blight and deterioration and
to discourage arson and related crimes in the Borough of Emsworth.
