[HISTORY: Adopted by the Borough Council of the Borough of
Ambridge as indicated in article histories. Amendments noted where
applicable.]
[Adopted 8-27-2013 by Ord. No. 1259[1]]
[1]
Editor's Note: This ordinance repealed former Art. I, Fire
Insurance Proceeds, adopted 5-4-1993 by Ord. No. 1100, as amended.
This ordinance also stated that failure to enforce any provisions
of this article shall not constitute a waiver of the Borough's right
to future enforcement.
The Borough Manager or such other duly authorized representative
of the Borough as the Borough Council may designate is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
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 Ambridge Borough 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 Borough Treasurer with a municipal
certificate pursuant to Section 508(b) of Act 98 [40 P.S. § 638(b)]
and unless there is compliance with Sections 508(c) and (d) of Act
98 [40 P.S. § 638(c) and (d)] and the provisions of this
article. Any request to the Borough Treasurer for a municipal certificate
shall be in writing.
A.Â
Upon the written request of the named insured specifying the tax
description of the property, the name and address of the insuring
agent and the date of receipt by the insuring agent of a loss report
of the claim, the Borough Manager or other duly authorized representative
of the Borough shall furnish, within 14 business days after the request
of the named insured, either:
(1)Â
A certificate, or at the discretion of the Borough, a verbal notification
which shall be confirmed in writing by the insuring agent 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 municipal certificate or verbal notification,
the Borough has not certified any amount as total costs incurred by
the Borough for the removal, repair or securing of a building or other
structure on the property; or
(2)Â
A certificate and itemized 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 municipal certificate and also showing, as of such
date, the amount of the total costs, if any, certified to the Borough
Treasurer that have been incurred by the Borough for the removal,
repair or securing of a building or other structure on the property.
For the purposes of this provision, the Borough shall certify to the
Borough Treasurer the total amount, if any, of such costs, if available,
or the amount of costs known to the Borough at the time of the Borough
Treasurer's certificate.
B.Â
For the purpose of this article, 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 under
applicable law.
C.Â
If the Borough issues a certificate in accordance with Subsection A(2) above, then the insuring agent shall return the bill to the Borough Treasurer and transfer to the Borough Treasurer an amount from the insurance proceeds sufficient to pay all delinquent taxes, assessments, penalties and user charges against the property and all expenses the Borough has incurred for costs of removal, repair or securing of a building or other structure on the property prior to making payment to the named insured, subject to the provisions of § 158-5 hereof.
D.Â
If the Borough issues a certificate indicating that there are no
delinquent taxes, assessments, penalties or user charges against the
property, then, upon receipt of the municipal certificate, 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 or other structure, compliance
with the following procedures shall be required:
(1)Â
The insuring agent shall transfer to the Borough Manager from the
insurance proceeds in the aggregate $2,000 for each $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 Borough shall be $2,000; or
(2)Â
If at the time of the loss report of the claim, as agreed to between
the named insured and the insuring agent, the named insured has submitted
a contractor signed estimate of the costs of removing, repairing or
securing the building or other structure, the insuring agent shall
transfer to the Borough from the insurance proceeds the amount specified
in the estimate.
(3)Â
Within 60 days of the transfer of proceeds to the Borough, the named
insured may submit to the Borough a contractor's signed estimate
of the costs of removing, repairing or securing the building or other
structure and, provided the Borough has not commenced to remove, repair
or secure the building or other structure, the Borough Manager shall
return to the named insured the amount of the funds transferred to
the Borough in excess of the estimate.
E.Â
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 the Borough shall
be disbursed in accordance with the policy terms.
A.Â
Upon the receipt of fire loss proceeds under § 158-3 above, the Borough shall do the following:
(1)Â
The Borough Manager shall place the proceeds in a separate fund to
be used solely as security against the total costs incurred by the
Borough for removing, repairing, or securing the building or structure.
Such costs shall include, without limitation, any engineering, legal
or administrative costs incurred by the Borough in connection with
such removal, repair or securing of the building or any proceedings
related thereto;
(2)Â
It is the obligation of the insuring agent when transferring the
proceeds to provide to the Borough the name and address of the named
insured. Upon receipt of the transferred funds and the name and address
of the named insured, the Borough Manager shall contact the named
insured, certify that the proceeds have been received by the Borough
and notify the named insured that the procedures set forth in this
section shall be followed;
(3)Â
When the repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable ordinances,
codes, regulations and legal requirements of the Borough and the required
proof of such completion in form and substance satisfactory to the
Borough has been received by the Borough Manager, and if the Borough
has not incurred any costs for repairs, removal or securing, the fund
shall be returned to the named insured. If the Borough has incurred
costs for repairs, removal or securing of the building or other structure,
such costs shall be paid from the fund and, if excess funds remain,
the Borough shall transfer the remaining funds to the named insured;
and
(4)Â
To the extent that interest is earned on proceeds held by the Borough
pursuant to this article and not returned to the named insured, such
interest shall belong to the Borough. 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.
B.Â
Nothing in this article shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
article shall be construed to prohibit the Borough 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, as determined by the parties, has been negotiated.
An insurance company, association or exchange making payments
of policy proceeds under this article for delinquent taxes or structural
removal liens or removal expenses insured by the Borough of Ambridge
shall have full benefit of such payment, including all rights of subrogation
and of assignment.
The Borough Council may, by resolution, adopt procedures and
regulations to implement Act 98, as amended, and this article and
may by resolution fix reasonable fees to be charged for activities
or services provided by the Borough pursuant to Act 98 and this article,
including, but not limited to, issuance of certificates and bills,
performance of inspections and opening separate fund accounts.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation, together with legal costs and reasonable attorney's
fees of not less than 5% of the amount due, as incurred by the Borough
in enforcement of this article.