[HISTORY: Adopted by the Board of Commissioners of the Township
of North Versailles as indicated in article histories. Amendments
noted where applicable.]
[Adopted 1-23-1993 by Ord. No. 915 (Ch. 1, Part 7, of the
1987 Code of Ordinances)]
From time to time the Township shall designate the official
responsible for carrying out the duties as are described herein. Such
official shall be the designated officer of the Township to make certifications,
file claims, etc., and carry out all functions as may be necessary
to effectuate Township claims pursuant to the "legislation referred
to hereinabove.[1] At the present time the Township hereby designates the
Township Secretary as the appropriate officer.
[1]
Editor's Note: So in original § 701 of the 1987
Code of Ordinances; unable to ascertain reference to "legislation
referred to hereinabove."
A.Â
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 North Versailles Township (hereinafter the "Township") where
the amount recoverable for the fire loss to the structure under all
policies exceeds $5,000, unless the named insured or insuring agent
is furnished by the Township Treasurer 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.[1]
[1]
Editor's Note: See 40 P.S. § 638(b), (c) and (d).
B.Â
Where, pursuant to Section 508(b)(1)(I) of Act 98 of 1992,[2] the Municipal 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 as 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)Â
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Township in the aggregate of $1,000
for each $20,000 of a claim and for each fraction of that amount of
a claim, this subsection to be applied such that if the claim is $20,000
or less, the amount transferred to the Township shall be $1,000.
(2)Â
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 Township from the insurance proceeds the amount specified in the
estimate.
(3)Â
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structures.
(4)Â
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 to the named insured, if the Township has not commenced to
remove, repair or secure the building or other structure.
(5)Â
Upon receipt of proceeds under this subsection, the Township shall
do the following:
(a)Â
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.
(b)Â
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. Upon receipt of the transferred funds and the named
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 named insured that the procedures under
this subsection shall be followed.
(c)Â
When repairs, removal or securing of the building or other structure
have 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 cost shall
be paid from the fund and, if excess funds remain, the Township shall
transfer the remaining funds to the named insured.
(d)Â
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.
(6)Â
Nothing in this section shall be construed to limited the ability
of the Township to recover any deficiency. Furthermore, nothing in
this subsection 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.
[2]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Township of North Versailles 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 municipal activities of certificates and bills,
performance of inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
An 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.
