A. 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 City of Reading (hereinafter the "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the Insurer and the named insured comply with the provisions of § 508(b)
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and the provisions of Part 1 of this chapter enacted contemporaneously herewith dealing with payment of delinquent taxes.
B. The Municipal Officer shall, upon the written request of the named insured specifying the tax description of the property, name and address of the insurer and the date agreed upon by the insurer and the named insured as the date of the receipt of a loss report of the claim, furnish the insurer either of the following within 14 working days of the request:
(1) A certificate, or at the discretion of the City, a verbal notification which shall be confirmed in writing by the insurer to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the Municipal Officer's certificate or verbal notification, the City has not certified any amount as total costs incurred by the City for the removal, repair or securing of a building or other structure on the property.
(2) A certificate and bill showing the amount of delinquent taxes, assessments, penalties and use 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 Municipal Officer's certificate, the amount of the total costs, if any, certified to the Municipal Officer that have been incurred by the City for the removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, the City shall provide to the Municipal Officer the total amount, if any, of such costs, if available, or the amount of costs known to the City at the time of the Municipal Officer's certificate.
(3) A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by the City under applicable law.
C. Upon the receipt of a certificate pursuant to Subsection B(1) of this section, the insurer shall pay the claim of the named insured in accordance with the policy terms. Provided, however that the Insurer shall also comply with the provisions of Part 1 of this chapter dealing with escrow funds for certain fire losses.
D. Upon the receipt of a certificate and bill pursuant to Subsection B(2) of this section, the insurer shall return the bill to the Municipal Officer and transfer to the Municipal Officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, proceeds, whichever is the lesser amount. The City shall receive the amount and apply or credit it to payment of the items shown in the bill.
E. Nothing in this section shall be construed to limit the ability of the City to recover any deficiency.
F. The City of Reading may adopt procedures and regulations to implement the provisions of this Part and may by ordinance fix reasonable fees to be charged for municipal activities and services provided pursuant to this Part; including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts. [Amended 8-26-2013 by Ord. No. 35-2013]