(A) The Borough Manager, or such official's designee, is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
(B) 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 Grove City (hereinafter "Municipality") 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 municipal treasurer with a municipal certificate pursuant to Section 508 (B) of Act 98 of 1992 as amended and unless there is compliance with Section 508 (C) of Act 98 of 1992 as amended and the provisions of this section and all charges set forth on the certificate are paid in full.
(C) Where pursuant to Section 508 (B)(l)(l) of Act 98 of 1992, as amended, the municipal treasurer issues a certificate indicating that there are not 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 or structure, the following procedures must be followed:
(1) The insuring agent shall transfer from the insurance proceeds to the designated officer of the municipality in the aggregate the amount 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 Municipality 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 municipality 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 of funds pursuant to division (B) above, the named insured shall submit a contractor's signed estimate within 60 days thereof for 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 municipality in excess of the estimate to the named insured, if the municipality has not commenced to remove, repair or secure the building or other structure, in which event, the municipality shall retain all funds until such work has been completed with the named insured being responsible for any additional obligations hereunder.
(5) Upon receipt of proceeds under this section, the municipality 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 municipality. Such costs shall include, all reasonable and customary engineering, legal or administrative costs incurred by the municipality 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 the municipality with the name and address of the named insured. Upon receipt of the transferred funds and the name and address of the name insured, the municipal treasurer shall certify that the proceeds have been received by the municipality and notify the named insured that the procedures under this subsection shall be followed;
(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 municipality and the required proof of such completion received by the designated officer, and if the municipality has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the municipality 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 municipality shall transfer the remaining funds to the named insured; and
(d) To the extent that proceeds are returned to the named insured, no interest earned on such proceeds, if any should be earned, shall be distributed to the named insured at the time that the proceeds are returned.
(6) Nothing in this section shall be construed to limit the ability of the municipality to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the municipality 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.
(D) The Council of the Borough of Grove City may by resolution adopt procedures and regulations to implement Act 98 of 1992 as amended and this section may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992 as amended and this section, including but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.
(E) Any owner of property, any named insured or any insuring agent who violates this section shall be subject to a penalty of up to $1,000 per violation.
(Ord. 1470, passed 3-16-2020)