[Ord. 93-300. Passed 4-19-1993]
(a)
The Township Treasurer is hereby appointed as the
designated officer who is authorized to carry out all responsibilities
and duties stated herein.
(b)
In the event of an insured fire loss to a building
or structure located within the Township where the loss agreed upon
by the named insured and the insuring agent equals or exceeds sixty
percent of the aggregate limits of liability on all fire policies
covering the building or structure, the following procedures shall
be followed:
(1)
The insuring agent shall transfer from the insurance
proceeds to the designated officer of the Township either:
A.
One thousand dollars for each $20,000 of the
claim, and for each fraction of that amount of the claim. The provisions
of this paragraph shall be applied such that if the claim is $20,000
or less, the amount transferred to the Township shall be $1,000.
B.
The amount specified in the estimate 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.
(c)
The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring buildings or
other structures.
(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 designated officer
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)
Upon receipt of proceeds under this section, the Township
shall do the following:
(1)
The designated officer shall place the proceeds
in the 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)
Upon receipt of the transferred funds and the
name and address of the named insured, the designated officer shall
contact the named insured, certify that the proceeds have been received
by the Township and notify the insured that the procedures under this
section shall be followed. 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.
(3)
When repair, removal or securing of the building
or other structure has been completed in accordance with all applicable
regulations and orders of the Township, and the required proof of
such completion received by the designated officer, 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 therefor shall be paid from the fund. 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 section 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 if some other reasonable
disposition of the damaged property has been negotiated.
(g)
The Township may fix, by resolution, a reasonable
fee for the preparation of any certificate requested pursuant to Section
508(B) of Act 98 of 1992.
(h)
The Township may fix, by resolution, reasonable fees
to be charged for Township activities in connection with the opening
of separate escrow accounts for the performance of any inspections
hereunder.
