Upon receipt of the amount withheld and information from an insurer, the city finance office shall record the information and the date of receipt and shall immediately deposit the money into a trust or escrow account established for the purposes of this chapter. The account may be interest bearing, and in such event, any interest earned on the amount placed in escrow or trust shall be retained by the city to defray expenses incurred under this chapter. The funds shall not be commingled with city funds. If a mortgage on the insured property is in default, the finance report shall release such portions of the amount placed in escrow necessary to satisfy any outstanding lien of the mortgagee within ten (10) days after receipt of a written request from the first mortgagee if the funds are not held by the city as costs of demolition to the property. The city must initiate demolition proceedings in a court of law within one hundred twenty (120) days of the receipt of the funds if no declaratory relief is filed as stated in subsection 3-10-3D of this chapter. (Ord. 3360, 11-28-2016)