236.03  INSURANCE PROCEEDS FROM FIRE-DAMAGED BUILDINGS.
   (a)   The Municipal Treasurer 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 Township of Lower Chichester (hereinafter the "Municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000), unless the named insured or insuring agent is furnished by the Municipal 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 section.
   (c)   Where, pursuant to Section 508 (B)(1)(I) of Act 98 of 1992, 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 agreed upon by the named insured and the insuring agent equals or exceeds sixty percent of the aggregate limits of liability on all fire policies covering the building restructure, 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 of one thousand dollars ($1,000) for each twenty thousand dollars ($20,000) of a claim and for each fraction of that amount of a claim, this section to be applied such that if the claim is twenty thousand dollars ($20,000) or less, the amount transferred to the Municipality shall be one thousand dollars ($1,000), 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 a pro rata basis by all companies, associations or exchanges insuring the building or other structure.
      (4)   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 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.
      (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 incurred by the Municipality in removing, repairing or securing the building or other structure.  Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Municipality in connection with such removing, repairing or securing of the building or any proceedings relating 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 named insured, the designated officer shall contact the named insured, certify that the proceeds have been received by the Municipality and notify the named insured that the procedures under this section shall be followed.
         C.   When removing, repairing or securing of the building or other structure has 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 removing, repairing or securing of the building or other structure, the fund shall be returned to the named insured. If the Municipality has incurred costs for removing, repairing 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.
         D.   To the extent that interest is earned on proceeds held by the Municipality pursuant to this section, and not returned to the named insured, such interest shall belong to the Municipality. 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)   Nothing in this section shall be construed to limit the ability of the Municipality to recover any deficiency. Further, nothing in this section 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)   Where, pursuant to Section 508 (B)(1)(II) of Act 98 of 1992, the Municipal Treasurer issues a certificate and 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 certificate, and also showing, as of the date of the Treasurer's certificate, the total costs, if any, that have been incurred by the Municipality for removing, repairing or securing of a building or other structure on the property, which costs have been certified to the Treasurer by the Municipality, then the insurance company, upon the receipt of a certificate and bill pursuant to this subsection, shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Municipality shall receive the amount and apply or credit it to payment of the items shown on the bill.
   (e)   The Board of Commissioners may, by resolution, adopt procedures and regulations to implement Act 98 of 1992 and this section and may, by resolution, fix reasonable fees to be charged for Municipal activities or services provided pursuant to Act 98 of 1992 and this section,  including, but not limited to, issuance of certificates and bills, performance of inspections and opening of separate accounts.
   (f)   Any owner of property, any named insured, or any insuring agent, who violates this section, shall, upon conviction thereof, be fined the maximum amount provided from time to time by State statute.
(Ord. 93-2.  Passed 2-15-93.)