Borough of Mount Union, PA
Huntingdon County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Mount Union as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-3-1993 by Ord. No. 1019 (Ch. I, Part 11, of the 1980 Code of Ordinances)]
The Borough Secretary or such official's designee 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 the Borough of Mount Union (hereinafter "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000, unless the insuring agent is furnished by the Borough Treasurer with a municipal certificate pursuant to Section 508(b) of Act 98 of 1992[1] and unless there is compliance with Section 508(c) and (d) of Act 98 of 1992[2] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b).
[2]
Editor's Note: See 40 P.S. § 638(c) and (d).
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992,[1] the Borough Treasurer issues a certificate 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 agreed upon by the named insured and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire policies governing the building restructure, the following procedures must be followed:
A. 
The insuring agent shall transfer from the insurance proceeds to the designated officer of the Borough in the aggregate of $1,000 for each $20,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that if the claim is $20,000 or less, the amount transferred to the Borough shall be $1,000.
B. 
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, the insuring agent shall transfer to the Borough 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.
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 funds transferred to the Borough in excess of the estimate to the named insured, if the Borough has not commenced to remove, repair or secure the building or other structure.
E. 
Upon receipt of the proceeds under this section, the Borough shall do the following:
(1) 
The designated officer 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 Borough. 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; and
(2) 
It is the obligation of the insuring agent when transferring the proceeds to provide the Borough with the name and address of the named insured. 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 Borough and notify the named insured that the procedures under this subsection shall be followed; and
(3) 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Borough and the required proof of such completion received by the designated officer, 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, the 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) 
To the extent that interest is earned on proceeds held by the Borough pursuant to this section 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.
F. 
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, nothing in this subsection 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 has been negotiated.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Borough of Mount Union may, by resolution, adopt procedures and regulations to implement Act 98 of 1992[1] and this article and may, by resolution, fix reasonable fees to be charged for Borough activities or services provided pursuant to Act 98 of 1992 and this article, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
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.
[Adopted 10-3-2018 by Ord. No. 2018-4]
The Borough Secretary (or such others as the Council may designate) is hereby appointed as the designated officer ("Designated Municipal 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 Mount Union 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 with a municipal certificate pursuant to Section 508 (B) of Act 98 of 1992 and unless there is compliance with Section 508(C) and (D) of Act 98 of 1992 and the provisions of this article.
A. 
Where there are delinquent taxes, assessment, penalties or user charges against the property ("municipal claims"), or there are expenses which the Borough has incurred for costs of removal, repair or securing of a building or other structure on the property (collectively "municipal expenses"), the designed municipal officer shall immediately render a bill for such work, if not already done. 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 designated municipal officer shall furnish a certificate within 14 days after the request of the insurer either:
(1) 
Stating that there are no unpaid municipal claims or municipal expenses against the property; or
(2) 
Specifying the nature and amount of such claims or expenses, accompanied by a bill for such amounts.
B. 
In accordance with Subsection A(2) of this section, the insurer shall transfer to the designated municipal officer an amount from the insurance proceeds sufficient to pay municipal claims and municipal expenses prior to making payment to the named insured, subject to the provisions of § 190-9 hereof.
C. 
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992, the Borough issues a certificate 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 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 restructure, the following procedures must be followed:
(1) 
The insuring agent shall transfer from the insurance proceeds to the designated officer of the Borough in the aggregate of $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) 
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, the insuring agent shall transfer to the Borough from the insurance proceeds the amount specified in the estimate.
(3) 
The transfer of proceeds shall be on pro rata basis by all companies, associations or exchanges insuring the building or other structure.
(4) 
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 Borough in excess of the estimate to the named insured, if the Borough has not commenced to remove, repair or secure the building or other structure.
(5) 
Upon receipt of proceeds under this section, the Borough shall do the following:
(a) 
The designated officer 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 Borough. 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; and
(b) 
It is the obligation of the insuring agent when transferring the proceeds to provide the Borough with the name and address of the named insured. 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 Borough and notify the named insured that the procedures under this subsection shall be followed; and
(c) 
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Borough and the required proof of such completion received by the designated officer, 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, the costs shall be paid from the fund and if excess funds remain, the Borough shall transfer the remaining funds to the named insured; and
(d) 
To the extent that interest is earned on proceeds held by the Borough pursuant to this section, such interest shall belong to the Borough.
(6) 
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, nothing in this subsection 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 of some other reasonable disposition of the damaged property has been negotiated.
An insurance company, association or exchange making payment of policy proceeds under this article for delinquent taxes or structural removal liens or removal expenses insured by the Borough shall have full benefit of such payment including all rights of subrogation and of assignment.
The Council 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 municipal activities or services provided pursuant to Act 98 of 1992 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 attorneys fees of not less than 5% of the amount due, as incurred by the Borough in enforcement of this article.
The provisions of this article shall be severable and, if any of the provisions hereof shall be held to be invalid or unenforceable, the remaining provisions of this article shall remain in effect.
This article shall be liberally construed to accomplish its purpose to deter commission of arson and related crimes, to discourage the abandonment of property and to prevent urban blight and deterioration, and to assure the payment of municipal expenses.
All ordinances or parts of ordinances conflicting with any of the provisions of this article are hereby repealed insofar as same affects this article. If any sentence, clause, section and/or provision of this article is deemed to be in conflict with state law, the terms of any such state law shall supersede the language and provisions of this article and such state law shall control. Any conflict with state law shall no invalidate this article nor be a basis for failing to pay any and all municipal expenses. Act 93 of 1994 is incorporated herein and shall be the basis for payment of all municipal expense if this article is rendered null and void, in whole or in part.
This article shall become effective upon adoption.
The Designated Municipal Officer shall transmit a certified copy of this article promptly to the Pennsylvania Department of Community and Economic Development or to the successor agency of the Pennsylvania Department of Community and Economic Development.