[Ord. 97-5, 5/28/1997, § 1]
1. No insurance company, association or exchange (hereinafter "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within Allen
Township where the amount recoverable for the fire loss to the structure
under all policies exceeds $7,500, unless the insurer is furnished
by the Allen Township Treasurer with a certificate pursuant to 40
P.S § 638(b), as amended by Act 98 of 1992 and Act 93 of
1994 (collectively, the "Act") and unless there is compliance with
the procedures set forth in subsections (c) and (d) of the Act.
2. Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Township has incurred as a cost for the removal, repair
or securing of a building or other structure on the property (collectively
"municipal expenses"), the Allen Township Secretary shall immediately
render a bill for such work, if he has not already done so. Upon written
request of the named insured specifying the tax description of the
property, the name and address of the insurer and the date of receipt
by the insurer of a loss report of the claim, the Treasurer shall
furnish, within 14 working days after the request, to the insurer,
a certificate (or at his discretion an oral notice confirmed in writing)
either:
A. Stating that there are no unpaid municipal claims or municipal expenses
against the property, or,
B. Specifying the nature and amount of such claims or expenses, accompanied
by a bill for such amounts. Taxes, assessments, penalties and user
charges shall be deemed delinquent for this purpose if a lien could
have been filed for such claims under applicable law. Upon receipt
of a certificate and bill pursuant to subsection (2)(A) of this Section,
the insurer shall transfer to the Treasurer an amount from the insurance
proceeds sufficient to pay such sums prior to making payment to the
named insured, subject to the provisions of subsection (3) hereof.
3. When all municipal claims and municipal expenses have been paid pursuant to subsection
(2) of this Section, or where the Treasurer has issued a certificate described in subsection
(2) indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured, provided, however, that if the loss agreed upon by the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures must be followed:
A. The insurer shall transfer from the insurance proceeds to the Treasurer
in the aggregate, $2,000 for each $15,000 of such claim or fraction
thereof.
B. If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Township, a contractor's
signed estimate of the cost of removing, repairing or securing the
building or other structure in an amount less than the amount calculated
under the foregoing transfer formula, the insurer shall transfer to
the Treasurer from the insurance proceeds the amount specified in
the estimate. If there is more than one insurer, the transfer of proceeds
shall be on pro rata basis by all insurers insuring the building or
other structure.
C. Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer shall do the following:
(1)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by Allen Township
to be required in removing, repairing or securing the building or
structure as required by this Part. Such costs shall include, without
limitation, any engineering, legal or administrative costs incurred
by the Township connection with such removal, repair or securing or
any proceedings related thereto; and,
(2)
Mail to the named insured, at the address received from the
insurer, a notice the proceeds have been received by the Township
and that the procedures under this subsection shall be followed.
(3)
After the transfer, the named insured may submit to the Township
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable,
return to the insured the amount of the funds transferred to the Township
in excess of that required to pay the municipal expenses; provided,
the Township has not commenced to remove, repair or secure the building
or other structure, in which case the Township will complete the work.
(4)
Pay to the Township Treasurer, for reimbursement to the Township
general fund, the amount of the municipal expenses paid by the Township.
(5)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Township
that repair, removal or securing of the building or other structure
has been completed in accordance with all applicable codes and regulations
of the Township.
(6)
Nothing in this Section shall be construed to limit the ability
of the Township to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this Part, or to
insurance proceeds, by an action at law or in equity to enforce the
codes of the Township or to enter into an agreement with the named
insured with regard to such other disposition of the proceeds as the
Township may deem responsible.
[Ord. 97-5, 5/28/1997, § 2]
Nothing in this Part 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 ordinance or to make this Township, any Township
official, a municipality 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 Part.
[Ord. 97-5, 5/28/1997, § 3]
An insurance company, association or exchange making payment
of policy proceeds under this Part for delinquent taxes or structures
removal liens or removal expenses incurred by the Township shall have
a full benefit of such payment including all rights of subrogation
and of assignment.
[Ord. 97-5, 5/28/1997, § 4]
This Part 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 deterioration.
[Ord. 97-5, 5/28/1997, § 5]
The Secretary of the Township shall transmit a certified copy
of this Part promptly to the Pennsylvania Department of Community
and Economic Development.
[Ord. 97-5, 5/28/1997, § 6; as amended by Ord.
2007-04, 11/8/2007]
Any person, firm or corporation who shall violate any provision
of this Part, upon conviction thereof in an action brought before
a Magisterial District Judge in the manner provided for the enforcement
of summary offenses under the Pennsylvania Rules of Criminal Procedure,
shall be sentenced to pay 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 90 days. Each day that a violation of this Part continues
or each Section of this Part which shall be found to have been violated
shall constitute a separate offense.