[HISTORY: Adopted by the Council of the Borough of Darby as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-6-1994 by Ord. No. 678, approved 5-6-1994]
No insurance company, association or exchange insuring property in the Borough of Darby and doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the Borough of Darby where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000, unless the issuance company, association or exchange is furnished with a certificate pursuant to § 87-2 of this article and unless there is compliance with the procedures set forth in §§ 87-3 and 87-4 of this article.
A. 
The Darby Borough Treasurer/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 of the date of the receipt of the proof of loss of the claim, furnish the named insured either of the following, which shall then be supplied by the named insured to the company, association or exchange:
(1) 
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 Treasurer/Tax Collectors' certificate, the Borough of Darby has certified any amount as for the removal, repair or securing 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 Treasurer/Tax Collector's certificate, the amount of the total costs, if any, certified to the Treasurer/Tax Collector that have been incurred by the municipality for the removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, the municipality shall certify to the Treasurer/Tax Collector the total amount, if any, of such costs.
B. 
Payment of claim.
(1) 
Upon receipt of a certificate pursuant to Subsection A(1) 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 Darby shall follow the procedures set forth in §§ 87-3 and 87-4 of this article.
(2) 
Upon the receipt of a certificate and bill pursuant to Subsection A(2) of this section, the insurance company, association or exchange shall return the bill to the Treasurer/Tax Collector and transfer to the Treasurer/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 Darby shall receive the amount and apply or credit it to payment of the items shown in the bill.
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 Treasurer/Tax Collector of the Borough of Darby in the aggregate a sum of $1,000 for each $20,000, and each fraction of that amount, of a claim, or, if at the time of a 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, the insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to the Borough of Darby shall be disbursed in accordance with the policy terms. 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 designated officer shall return the amount of the fund in excess of the estimate to the named insured if the Borough of Darby has not commenced to remove, repair or secure the building or other structure. This section only applies to fire losses that occur after the adoption of this article.
Upon receipt of proceeds by the Borough of Darby as authorized by this article, the Darby Borough Treasurer/Tax Collector 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 of Darby. When transferring the funds as required in § 87-3 of this article, an insurance company, association or exchange shall provide the Borough of Darby with the name and address of the named insured, whereupon the Borough of Darby shall contact the named insured, certify that the proceeds have been received by the Borough of Darby and notify the named insured that the procedures under this section shall be followed. The fund shall be returned to the named insured when repair, removal or securing of the building or other structure have been completed and the required proof received by the Darby Borough Treasurer/Tax Collector if the Borough of Darby has not incurred any costs for repair, removal or securing. If the Borough of Darby 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 Darby shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Borough of Darby to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Borough of Darby 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.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with § 87-3 of this article 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 § 87-3 of this article.
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 Darby, and Darby Borough official, 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 article.
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 Darby shall have a full benefit of such payment, including all rights of subrogation and of assignment.
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, firm or corporation who shall violate any provision of this article shall, upon conviction thereof, be sentenced to a fine of not more than $600 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day on which a violation of this article shall continue shall be deemed a separate offense.