Township of Leet, PA
Allegheny County
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Table of Contents
Table of Contents

§ 1-701 Designated Officer.

[Ord. 2015-04, 8/10/2015, § 1-101]
The Township Manager or such other duly authorized representative of the Township as the Board of Commissioners may designate is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.

§ 1-702 Use of Fire Insurance Proceeds.

[Ord. 2015-04, 8/10/2015, § 1-102]
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 Township 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 Township Treasurer with a municipal certificate pursuant to § 508(b) of Act 98 [40 P.S. § 638(b)] and unless there is compliance with § 508(c) and (d) of Act 98 [40 P.S. § 638(c) and (d)] and the provisions of this Part. Any request to the Township Treasurer for a municipal certificate shall be in writing.

§ 1-703 Municipal Claims.

[Ord. 2015-04, 8/10/2015, § 1-103]
1. 
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 Township Manager or other duly authorized representative of the Township shall furnish, within 14 business days after the request of the named insured, either:
A. 
A certificate, or at the discretion of the Township, 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 Township has not certified any amount as total costs incurred by the Township for the removal, repair or securing of a building or other structure on the property.
B. 
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 Township Treasurer that have been incurred by the Township for the removal, repair or securing of a building or other structure on the property. For the purposes of this provision, the Township shall certify to the Township Treasurer the total amount, if any, of such costs, if available, or the amount of costs known to the Township at the time of the Township Treasurer's certificate.
2. 
For the purpose of this Part, 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 Township under applicable law.
3. 
If the Township issues a certificate in accordance with paragraph .B above, then the insuring agent shall return the bill to the Township Treasurer and transfer to the Township 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 Township 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 § 1-705 hereof.
4. 
If the Township 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:
A. 
The insuring agent shall transfer to the Township 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 Township shall be $2,000.
B. 
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 Township from the insurance proceeds the amount specified in the estimate.
C. 
Within 60 days of the transfer of proceeds to the Township, the named insured may submit to the Township a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure and, provided the Township has not commenced to remove, repair or secure the building or other structure, the Township Manager shall return to the named insured the amount of the funds transferred to the Township in excess of the estimate.
5. 
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 Township shall be disbursed in accordance with the policy terms.

§ 1-704 Escrow of Funds.

[Ord. 2015-04, 8/10/2015, § 1-104]
1. 
Upon the receipt of fire loss proceeds under § 1-703 above, the Township shall do the following:
A. 
The Township Manager shall place the proceeds in a separate fund to be used solely as security against the total costs incurred by the Township for removing, repairing, or securing the building or structure. 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. 
It is the obligation of the insuring agent when transferring the proceeds to provide to the Township the name and address of the named insured. Upon receipt of the transferred funds and the name and address of the named insured, the Township Manager shall contact the named insured, certify that the proceeds have been received by the Township and notify the named insured that the procedures set forth in this section shall be followed.
C. 
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 Township and the required proof of such completion in form and substance satisfactory to the Township has been received by the Township Manager, 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, such costs shall be paid from the fund and, if excess funds remain, the Township shall transfer the remaining funds to the named insured.
D. 
To the extent that interest is earned on proceeds held by the Township pursuant to this Part 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.
2. 
Nothing in this Part shall be construed to limit the ability of the Township to recover any deficiency. Furthermore, nothing in this Part 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 if the damaged property, as determined by the parties, has been negotiated.

§ 1-705 Insurance Company Rights Reserved.

[Ord. 2015-04, 8/10/2015, § 1-105]
An insurance company, association or exchange making payments of policy proceeds under this Part for delinquent taxes or structural removal liens or removal expenses insured by the Township shall have full benefit of such payment, including all rights of subrogation and of assignment.

§ 1-706 Reasonable Township Fees.

[Ord. 2015-04, 8/10/2015, § 1-106]
The Board of Commissioners may, by resolution, adopt procedures and regulations to implement Act 98, as amended, and this Part and may by resolution fix reasonable fees to be charged for activities or services provided by the Township pursuant to Act 98 and this Part, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.

§ 1-707 Penalties, Costs and Attorney's Fees.

[Ord. 2015-04, 8/10/2015, § 1-107; as amended by Ord. 2016-01, 3/14/2016]
Any owner of property, any named insured or any insuring agent who violates this Part, upon conviction thereof, shall be sentenced to pay a fine of not more than $1,000 plus costs, together with legal costs and reasonable attorney's fees of not less than 5% of the amount due, as incurred by the Township in enforcement of this Part and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day that a violation of this Part continues shall constitute a separate offense.