[HISTORY: Adopted by the Board of Supervisors of the Township of Springettsbury as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-25-1995 by Ord. No. 1995-07 (Ch. 1, Part 10, of the 2003 Code)]
No insurance company, association or exchange (hereinafter the "insurer") 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 insurer is furnished by the Township's Treasurer with a certificate pursuant to § 508(b) of the Insurance Company Law of 1921, as amended by Act 98 of 1992, and Act 93 of 1994 (collectively the "Act"), and unless there is compliance with the procedure set forth in § 508(c) and (d) of the Act.
A. 
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 costs for the removal, repair or securing of a building or other structure on the property (collectively "municipal expenses") the Manager of the Township 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, within 14 working days after the request, furnish to the insurer a certificate (or at his discretion an oral notification confirmed in writing) either:
(1) 
Stating that there are no unpaid Township claims or Township expenses against the property.
(2) 
Specifying the nature and amount of such claims or expenses, accompanied by a bill for such amounts.
B. 
Tax, 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 A(2) above, 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 § 178-3 hereof.
When all Township claims and Township expenses have been paid pursuant to § 178-2 of this article, or where the Treasurer has issued a certificate described in § 178-2A(1) indicating that there are no Township claims or Township 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 costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the foregoing 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 a 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 Township expenses anticipated by the Township to be required in removing, repairing or securing the building or structure as required by this article. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Township in connection with such removal, repair or securing or any proceedings related thereto.
(2) 
Mail to the named insured, at the address received from the insurer, a notice that 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 costs 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 Township 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 Manager, for reimbursement to the Township's General Fund, the amount of Township 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 Codes Enforcement Officer of the Township that the repair, removal or securing of the building or other structure has been completed in accordance with all applicable codes and regulations of the Township.
D. 
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency in the amount of Township claims or Township expenses recovered pursuant to the article or to insurance proceeds by an action at law or 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 reasonable.
[Amended 2-27-1997 by Ord. No. 1997-06; 12-11-2003 by Ord. No. 2003-18]
Any person, firm or corporation who shall violate any provision of this article, upon conviction thereof in an action brought before a district justice 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 article continues or each section of this article which shall be found to have been violated shall constitute a separate offense.
[Amended 12-11-2003 by Ord. No. 2003-18]
The Secretary of the Township shall transmit a certified copy of this article promptly to the Department of Community and Economic Development of the Commonwealth of Pennsylvania.
Nothing in this article shall be construed to affect any suit or proceeding in any court, any rights acquired or liability incurred, any permit issued or any cause or causes of action existing under other ordinances of the Township prior to the enactment of this article.