(A) There is hereby created a Fire Insurance Trust Fund which shall be maintained separately from all other city funds as a trust fund for the purposes hereinafter enumerated.
(B) For the purposes specified in R.C. § 3929.86, the Director of Finance is hereby designated as the officer to administer the Fire Insurance Trust Fund.
(C) (1) In the event of any loss by fire within the city occurring after the effective date of this subchapter when the amount of the loss agreed to between the named insured or insureds and the company or companies insuring such loss equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure insured, the insurance company or companies in accordance with R.C. § 715.26(F), shall transfer from the insurance proceeds to the Director of Finance of the city in the aggregate $2,000 for each $15,000 and each fraction of that amount, of a claim, or, if at the time of a proof of loss agreed to between the named insured or insureds and the insurance company or companies the named insured or insureds have submitted a contractor’s signed estimate of the costs of removing, repairing, or securing the building or other structure, shall transfer from the insurance proceeds the amount specified in the estimate.
(2) Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure.
(3) The named insured or insureds may submit a contractor’s signed estimate of the costs of removing, repairing, or securing the building or other structure after the transfer, and the Director of Finance shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the city has not commenced to remove, repair, or secure the building or other structure.
(D) (1) Upon receipt of proceeds by the city as authorized by this subchapter and R.C. § 3929.86, the Director of Finance shall place the proceeds in the Fire Insurance Trust Fund to be used solely as security against the total cost of removing, repairing, or securing incurred by the city pursuant to R.C. § 715.261.
(2) When transferring the fund as required by this subchapter an insurance company shall provide the Director of Finance with the name and address of the named insured or insureds, whereupon the Director of finance or his or her designee shall contact the named insured or insureds, certify that the proceeds have been received by the city and notify them that the procedures as set forth in this division will be followed:
(a) The fund shall be returned to the name insured or insureds when the repairs or removal, or securing of the building or other structure have been completed and the required proof received by the Director of Finance, if the city has incurred any 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 city shall transfer the remaining funds to the named insured or insureds.
(b) Nothing in this subchapter shall be construed to limit the ability of the city to recover any deficiency under R.C. § 715.261.
(E) In accordance with the provisions of R.C. § 3929.86, the Clerk of Council is hereby directed to file a certified copy of Ordinance 6419 with the Superintendent of Insurance of the State of Ohio.
(Ord. 6419, passed 10-24-89)