A. Draft Executed To City Treasurer: When final settlement on a covered claim has been agreed to or arrived at between the named insured and the company, and the final settlement exceeds seventy five percent (75%) of the face value of the policy covering any building or other insured structure, and when all amounts due the holder of a first real estate mortgage against the building or other structure, pursuant to the terms of the policy and endorsements thereto, shall have been paid, the insurance company shall execute a draft payable to the City Treasurer in an amount equal to the sum of five thousand dollars ($5,000.00) or ten percent (10%) of the covered claim payment, whichever is less, unless the Building Inspector has issued a certificate to the insurance company that the insured has removed the damaged building or other structure, as well as all associated debris, or repaired, rebuilt or otherwise made the premises safe and secure. (Ord. 948, 4-6-1992; amd. 1998 Code)
B. Transfer Of Funds; Pro Rata Basis: Such transfer of funds shall be on a pro rata basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the City shall be disbursed in accordance with the policy terms.
C. Notice Requirements: Upon the transfer of the funds as required by subsection A of this Section, the insurance company shall provide the City with the name and address of the named insured, the total amount of the final settlement agreed to or arrived at between the insured by registered mail, notifying them that said insurance proceeds have been received by the City and apprise them of the procedures to be followed under this Chapter. (Ord. 948, 4-6-1992)