[Ord. 1-2006, 4/13/2006, § 1]
This Part shall be known as the "Act 93 of 1994 Ordinance."
[Ord. 1-2006, 4/13/2006, § 2]
The subject matter of this Part is establishment of regulations
relating to Act 93 of 1994 and providing for the payment of proceeds
from certain fire loss claims to the Township of Canton (hereinafter
the "Township").
[Ord. 1-2006, 4/13/2006, § 3]
The Secretary or such official's designee is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Ord. 1-2006, 4/13/2006, § 4]
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 Township 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 Secretary with a municipal certificate
pursuant to § 508(B) of Act 93 of 1994 and unless there
is compliance with § 508(C) and (D) of Act 93 of 1994 and
the provisions of this Part.
[Ord. 1-2006, 4/13/2006, § 5]
Where pursuant to § 508(B)(1) of Act 93 of 1994 the
Secretary 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 restructure, the following
procedures must be followed:
A.
The Insuring Agent shall transfer from the insurance proceeds to
the Secretary of the Township in the aggregate of $2,000 for $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 Township shall be $2,000.
B.
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, the Insuring Agent shall transfer to
the Township from the insurance proceeds the amount specified in the
estimate.
C.
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.
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 Secretary shall return the amount of the
funds transferred to the Township in excess of the estimate to the
named insured, if the Township has not commenced to remove, repair
or secure the building or other structure.
E.
Upon receipt of proceeds under this section, the Township shall do
the following:
(1)
The Secretary 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 Township.
Such costs shall include, without limitation, any engineering, legal
or administrative costs incurred by the Township in connection with
such removal, repair or securing of the building or proceedings related
hereto.
(2)
It is the obligation of the Insuring Agent when transferring the
proceeds to provide the Township 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 Secretary shall contact the
named insured, certify that the proceeds have been received by the
Township and notify the named insured that the procedures under this
subsection shall be followed.
(3)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the Township and the required proof of such completion
received by the Secretary, and if the Township has not incurred any
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 Township shall transfer the remaining funds to the named insured.
(4)
To the extent that interest is earned on proceeds held by the Township
pursuant to this section, and not returned to the named insured, such
interest shall belong to the Township. To the extent that 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.
F.
Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Township and the named
insured from entering into an agreement that permits the transfer
of funds to the named insured of some other reasonable disposition
of the damaged property has been negotiated.
[Ord. 1-2006, 4/13/2006, § 6]
The Township of Canton may by resolution adopt procedures and
regulations to implement Act 93 of 1994 and this Part and may by resolution
fix reasonable fees to be charged for municipal activities or services
provided pursuant to Act 93 of 1994 and this Part, including but not
limited to, issuance of certificates and bills, performance of inspections
and opening separate fund accounts.
[Ord. 1-2006, 4/13/2006, § 7; amended at time of
adoption of Code]
Any person who violates or permits a violation of this chapter
shall, upon conviction in a summary proceeding brought before a Magisterial
District Judge under the Pennsylvania Rules of Criminal Procedure,
be guilty of a summary offense and shall be punishable by a fine of
not more than $1,000, plus costs of prosecution. In default of payment
thereof, the defendant may be sentenced to imprisonment for a term
not exceeding 90 days. Each day or portion thereof that such violation
continues or is permitted to continue shall constitute a separate
offense, and each section of this chapter that is violated shall also
constitute a separate offense.
