[HISTORY: Adopted by the Borough Council of the Borough of
Brentwood 3-23-2010 by Ord. No. 1186. Amendments noted where applicable.]
The Borough Manager of the Borough of Brentwood, or such official's
designee, is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties stated herein.
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 Brentwood (hereinafter the "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 Manager with a municipal certificate pursuant to § 638(b)
of the Insurance Company Law, as amended, and unless there is compliance
with the provisions of this article.
A.
Where, pursuant to § 638(b)(l)(ii) of the Insurance Company
Law, as amended, the Borough Manager is requested to issue a certificate
to the insuring agent regarding property that is subject to delinquent
taxes, assessments, penalties and/or user charges, the Borough Manger
shall issue such certificate along with a bill showing the amount
of delinquent taxes, assessments, penalties and/or user charges against
the subject property that have not been paid as of the date of the
Borough Manager's certificate and also showing, as of the date
of the Borough Manager's certificate, the amount of the total
costs, if any, certified to the Borough Manager as having been incurred
by the Borough for the removal, repair or securing of a damaged building
or other structure on the property.
(1)
The Borough shall be responsible for certifying to the Borough Manager
any such costs incurred by the Borough for removal, repair or securing
of a damaged building or other structure on the property.
(2)
The insuring agent shall, upon receipt of such certificate and bill,
return the bill to the Borough Manager and transfer to the Borough
Manager an amount from the insurance proceeds necessary to pay the
taxes, assessments, penalties, charges and costs as shown on the bill.
(3)
The Borough shall, upon receipt of such amount, apply or credit the
amount to payment of the items shown on the bill.
B.
Where, pursuant to § 638(b)(1)(i) of the Insurance Company
Law, the Borough Manager or his assignee 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 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 restructures, the following procedures must be followed:
(1)
The insuring agent shall transfer from the insurance proceeds to
the Borough Manager an amount in the aggregate of $2,000 for each
$15,000 of a fire loss claim and for each fraction thereof; however,
if the amount of such claim is $15,000 or less, the amount transferred
to the Borough shall be $2,000; or 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 cost
of removing, repairing, or securing the building or other structures,
the insuring agent shall transfer to the Borough from the insurance
proceeds the amount specified in the estimate.
(2)
The transfer of proceeds shall be on pro rata basis by all companies,
associations or ex-changes insuring the building or other structure.
(3)
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 Borough Manager 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.
(4)
Upon receipt of proceeds under this section, the Borough shall do
the following:
(a)
The Borough Manager 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, without limitation, any
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.
(b)
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 Manager shall contact
the named insured; certify that the proceeds have been received by
the Borough; and notify the named insured that the procedures under
this subsection shall be followed.
(c)
When repairs, removal or securing of the building or other structures
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 Manager, 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 fund, and, if excess funds remain, the Borough
shall transfer the remaining funds to the named insured.
(d)
Any interest earned on proceeds held by the Borough that are
not returned to the named insured shall belong to the Borough. Any
interest earned on proceeds that are returned to the named insured
shall be distributed to the named insured at the time said proceeds
are returned.
C.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, 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 after some other reasonable disposition of the
damaged property has been negotiated.
The Borough Council may, by resolution, adopt procedures and
regulations to implement Section 638 of the Insurance Company Law
and this chapter and may, by resolution, fix reasonable fees to be
charged for municipal activities or services provided pursuant to
Section 638 of the Insurance Company Law and this chapter, including
but not limited to issuance of certificates and bills, performance
of inspections and opening separate fund accounts.
Any person who violates any of the provisions of this chapter
shall be required to pay a fine of not more than $1,000 upon conviction
thereof before a District Justice and, upon failure to pay the same,
upon conviction, shall be imprisoned for a period of not more than
30 days. Each day's violation shall constitute a separate offense.
The imposition of a penalty shall not excuse the violation or permit
it to continue.
All ordinances or parts of ordinances conflicting with any of
the provisions of this chapter are hereby repealed in so far as they
affect this chapter.
The provisions of this chapter shall take effect 30 days from
the date of enactment.
