[HISTORY: Adopted by the Borough Council of the Borough of
Towanda as indicated in article histories. Amendments noted where
applicable.]
[Adopted 5-1-2000 by Ord. No. 2-2000]
The Treasurer of the Borough of Towanda, Pennsylvania (hereinafter
referred to as "Borough Treasurer") is hereby designated to perform
all duties assigned by Section 508 of the Insurance Company Law of
1921, 40 P.S. § 638, in connection with the issuance of
fire loss certifications and collection of funds paid by insurers
in settlement of outstanding municipal taxes and claims against fire-damaged
buildings or structures located within the Borough of Towanda, Pennsylvania
(hereinafter referred to as "Borough of Towanda") for the collection
of funds paid by insurers as security against the total cost incurred
by said Borough for removing, repairing or securing of fire-damaged
buildings or structures located within the Borough of Towanda, for
the establishment and administration of a separate account for deposit
of such security funds and for the distribution of such security funds.
A.
The Borough Treasurer is hereby authorized to certify the amount of delinquent taxes, assessments, penalties or user charges that are outstanding against a building or other structure located in the Borough of Towanda, Pennsylvania, where the amount recoverable for the fire loss to the structure under all insurance policies exceeds $7,500 and to receive such funds from insurers in payment for such delinquent taxes and municipal claims in accordance with the procedure established by Subsection B.
B.
The Borough Treasurer shall, upon the written request of the named
insured specifying the tax description of the property, name and address
of the insurance company, association or exchange and the date agreed
upon by the insurance company, association or exchange and the named
insured as the date of the receipt of a loss report of the claim,
furnish the insurance company, association or exchange either of the
following certificates within 14 working days of the request:
(1)
A certificate or, at the discretion of the Borough Treasurer, a verbal
notification, which shall be confirmed in writing by the insurer 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 Borough Treasurer's
certificate or verbal notification, no municipality has certified
any amount as total costs incurred by the municipality 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 Borough Treasurer's certificate,
the amount of the total costs, if any, certified to the Borough Treasurer
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 Borough of Towanda shall certify
to the Borough Treasurer the total amount, if any, of such costs.
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 the Borough of Towanda under applicable law.
C.
Receipt of certificate; credit.
(1)
Upon receipt of a certificate pursuant to Subsection B(1), the insurance company, association or exchange shall have no further obligation to the Borough of Towanda 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 and the insured property owner shall comply with the requirements of §§ 174-3 and 174-4 of this article.
(2)
Upon the receipt of a certificate and bill pursuant to Subsection B(2), the insurance company, association or exchange shall return the bill to the Borough Treasurer together with an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough Treasurer shall credit payment of the items shown in the bill and send a receipt to the insurance company, association or exchange and the insured property owner.
When the loss agreed to between the named insured and the company,
association or exchange that has insured a building or other structure
located in the Borough of Towanda against fire damage 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 Borough
Treasurer in the aggregate $2,000 for each $15,000 and each fraction
of that amount of a claim, or, 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 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.
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 Borough Treasurer shall return
the amount of the fund in excess of the estimate to the named insured
if the Borough of Towanda has not commenced to remove, repair or secure
the building or other structure.
A.
Upon receipt of proceeds by the Borough of Towanda, as authorized
by this article, the Borough Treasurer 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 Towanda.
When transferring the funds, as required by this article, an insurance
company, association or exchange shall provide the Borough of Towanda
with the name and address of the named insured, whereupon the Borough
of Towanda shall contact the named insured, certify that the proceeds
have been received by the Borough of Towanda and notify the named
insured that the procedures under this subsection shall be followed.
The fund shall be returned to the named insured when repairs, removal
or securing of the building or other structure has been completed
and the required proof received by the Borough Treasurer if the Borough
of Towanda has not incurred any costs for repairs, removal or securing.
If the Borough of Towanda 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 Towanda
shall transfer the remaining funds to the named insured. Nothing in
this chapter shall be construed to limit the ability of the Borough
Treasurer to recover any deficiency. Further, nothing in this chapter
shall be construed to prohibit the Borough of Towanda 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; however, such an agreement
may not be entered into unless it is first reviewed by the Borough
Solicitor and approved by a resolution adopted by the Council of the
Borough of Towanda.
B.
Nothing in this chapter 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 chapter or to make the Borough of Towanda 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 chapter.
C.
An insurance company, association or exchange making payments of
policy proceeds under this chapter for delinquent taxes or structure
removal liens or removal expenses incurred by the Borough of Towanda
shall have a full benefit of such payment, including all rights of
subrogation and assignment.
D.
An exact copy of this chapter shall be filed with the Department
of Community and Economic Development, together with the name, position
and phone number of the municipal official responsible for compliance
with this section.
E.
This section 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 destruction.
[Added 7-10-2006 by Ord. No. 3-2006[1]]
A.
The Borough previously created the Towanda Fire Department presently
operating under the jurisdiction of the Borough.
B.
The Borough wishes to provide for reimbursement to the Fire Department
for any and all costs and/or expenses incurred by the Department which
may be obtainable by the Department by claims submitted to the individual
property owners' insurance carrier.
C.
It is the finding of the Council of the Borough of Towanda, Pennsylvania,
that individual property owners may maintain insurance coverage within
their own casualty insurance policies, homeowners' policies and/or
other applicable policies that would provide reimbursement to the
Fire Department for fire fighting and other services rendered to the
individual property owners' properties in response to emergency
service requests.
D.
The Department is hereby authorized and directed, by and through
its officers and authorized representatives, to ascertain what insurance
coverages may be applicable and available under any given circumstance,
and to take all necessary and affirmative steps to apply for and receive
reimbursement from any insurance carrier where a property owner is
or may be insured to reimburse the Department for any cost and/or
expense incurred for services, supplies and/or equipment used for
or provided to the property owner by the Department.
E.
The term "fire" shall include any fire and any occurrence which causes
the Towanda Fire Department to provide fire protection or other services
to the affected property.
[1]
Editor's Note: This ordinance also provided that it should
"have application commencing six months immediately before" its passage
and that it should "be liberally construed to accomplish its purpose
to compensate and/or reimburse the Borough of Towanda Fire Department
from insurance proceeds only for costs and/or expenses incurred while
providing services pursuant to their duties for the Fire Department."
