[HISTORY: Adopted by the Borough Council of the Borough of East Petersburg as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-2-2019 by Ord. No. 304]
No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for damage to a structure located within East Petersburg Borough where the amount recoverable for fire loss to the structure under all policies exceeds the amount as specified by statute of the Commonwealth of Pennsylvania, unless the insurance company, association or exchange is furnished with a certificate by East Petersburg Borough pursuant to the provisions of this article.
A. 
Upon written request by the named insured or the named insurer, the Borough shall provide a report, within 14 days of the written request, and issue one of the following:
(1) 
A certificate that there are no delinquent taxes, assessments, penalties and user charges against the property, and the named insured or named insurer has removed, repaired or secured the structure or structures to the satisfaction of East Petersburg Borough; or in the alternative, has provided the security as determined by the Borough.
(2) 
Written notice to the named insured or the named insurer that there is an attached bill to the notice showing the delinquent taxes, assessments, penalties and user charges against the property and/or that named insured or insurer has not provided for removing, repairing or securing the building or other structures as required by East Petersburg Borough.
A. 
Upon the payment by the named insured or the named insurer of the amount of delinquent taxes, assessments, penalties and user charges against the property, a receipt therefor shall be issued by East Petersburg Borough.
B. 
Upon the receipt by East Petersburg Borough of the payment of proceeds as authorized and calculated by statute of the Commonwealth of Pennsylvania for the purpose of paying the costs of removing, repairing or securing the structure or structures, the Borough shall issue a receipt for the payment.
A. 
If East Petersburg Borough has received funds or other security from the named insured or the named insurer for the repair, removal or securing of the structure or structures, the Borough will notify the party that the funds or security shall be refunded or returned to the party upon completion of the repairs, removal or securing of the structure or structures. If the named insured or the named insurer fails to take such action within the time period as is designated by East Petersburg Borough, the Borough shall use the funds or security to pay for the costs of removing, repairing or securing the structure or structures, and if any funds remain after payment of all costs by East Petersburg Borough, the same shall be refunded to the party that made the payment or posted the security. In the event of any deficiency, East Petersburg Borough shall be entitled to collect any deficiency from the named insured or from the named insurer.
B. 
Nothing in this article shall be construed to prohibit the Borough and the named insured or named insurer from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition for security has not been negotiated and agreed upon.
C. 
The named insurer shall not be liable for any sum in excess of the proceeds payable under the insurance policy.
Upon compliance with the provisions of this article, East Petersburg Borough shall issue a certificate to the named insured and/or to the named insurer.
Any person who violates or permits violation of this provision of this article of the East Petersburg Borough Code shall, upon conviction thereof, be sentenced to pay a fine of not less than $100 nor more than $1,000, and/or to be imprisoned for a period not to exceed 90 days. A separate offense shall arise for each day or portion thereof in which a violation is found to exist. The filing of such action shall not prohibit the Borough from taking such other action as is permitted by law.