[HISTORY: Adopted by the Board of Commissioners of the Township of
Hatfield as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-29-1993 by Ord. No. 415
(Ch. 1, Part 7, of the 1994 Code)]
The Township Treasurer or such official's designee is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Amended 9-25-1996 by Ord. No. 420Y]
No insurance company, association or exchange (hereinafter called 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
Hatfield Township (hereinafter called the "municipality") where the amount
recoverable for the fire loss to the structure under all policies exceeds
$7,500 unless the named insured or insuring agent is furnished by the Township
Treasurer with a certificate pursuant to Section 508(b) of Act 98 of 1992,
and unless there is compliance with Sections 508(c) and (d) of Act 98 of 1992
and the provisions of this article.
[Amended 9-25-1996 by Ord. No. 420Y]
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Township
Treasurer issues a certificate or, at the discretion of Hatfield Township,
a verbal notification which shall be confirmed in writing by the insurer,
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 as 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 or other structure,
the following procedures must be followed:
A.
The insuring agent shall transfer from the insurance
proceeds to the Treasurer of the Township in the aggregate of $2,000 for each
$15,000 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 loss report 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 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 a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure. Policy proceeds remaining after the transfer to Hatfield Township
shall be disbursed in accordance with policy terms.
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 Township Treasurer shall return the amount of
the funds transferred to the Township in excess of the estimate of the named
insured, if the Township has not commenced to remove, repair or secure the
building or other structure.
E.
When transferring funds under this section, an insurance
company, association or exchange shall provide the Township with the name
and address of the named insured.
F.
Upon receipt of the information set forth in Subsection E of this section, the Township shall contact the named insured, certify that the proceeds have been received by the Township, and notify the named insured that the procedure under this section be followed.
G.
Upon receipt of the proceeds under this section, the
Township shall do the following:
(1)
The Township Treasurer 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 any proceedings related thereto.
(2)
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 Township Treasurer, and if the Township has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the Township 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 Township shall transfer the remaining funds
to the named insured.
(3)
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.
H.
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 or some other reasonable disposition of the damaged property
has been negotiated.
Where pursuant to Section 508(b)(1)(ii) of Act 98 of 1992, the Township
Treasurer issues a certificate and bill showing the amount of delinquent taxes,
assessments, penalties and users charges against the real property have not
been paid as of the date of the certificate, and also showing, as of the date
of the certificate, the amount of the total costs, if any, certified to the
Township Treasurer that have been incurred by the Township for removal, repair
or securing of a building or other structure on the real property, the insuring
agent shall return the bill to the Township Treasurer and transfer to the
Township Treasurer an amount from the insurance proceeds necessary to pay
the taxes, assessments, penalties, charges and costs as shown on the bill.
The Township, upon receipt of the amount, shall apply or credit it to the
payment of the items shown on the bill. A tax assessment, penalty or user
charge becomes delinquent at the time and on the date a lien could otherwise
have been filed against the property by Hatfield Township under applicable
law.
A.
The Township Commissioners may, by resolution, adopt
procedures and regulations to implement Act 98 of 1992 and this article and
may, by resolution, fix reasonable fees to be charged for Township activities
or services provided pursuant to Act 98 of 1992 and this article, including,
but not limited to, the issuance of certificates and bills, the performance
of inspections and the opening of separate fund accounts.
B.
It shall be the duty of the Township Treasurer to issue
the certifications required under this article. However, the Township Treasurer
shall only be responsible for ascertaining the amount of any and all real
estate taxes due, and it shall be the duty of the Township Manager to provide
the necessary information to the Township Treasurer by way of a certification
as to any and all other sums of money due or required to be paid under the
terms of this article or under the enabling statute, pursuant to which this
article is enacted, so that only one certification will be required of the
Township Treasurer in complying with the terms and provisions of this article.
[Amended 9-28-1994 by Ord. No. 420]
Any person, firm or corporation violating any provision of this article
shall be subject to a fine of not more than $1,000, plus costs, and, in default
of payment of said fine and costs, to a term of imprisonment not to exceed
30 days. Each day that a violation of this article continues shall constitute
a separate offense.
