4-2-3: PROCEDURE UPON FINAL SETTLEMENT:

   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)

4-2-4: FUND CREATED; DEPOSIT OF MONIES:

The City Treasurer is hereby authorized and shall create a fund to be known as the Fire Insurance Proceeds Fund. All monies received by the City Treasurer as provided for by this Chapter shall be placed in said Fund and deposited in an interest-bearing account. (Ord. 948, 4-6-1992)

4-2-5: INVESTIGATION; REMOVAL OF STRUCTURE:

   A.   Notification To Building Inspector: Upon receipt of monies as provided for by this Chapter, the City Treasurer shall immediately notify the Building Inspector of said receipt, and transmit all documentation received from the insurance company to the Building Inspector.

   B.   Determination: Within twenty (20) days of the receipt of said monies, the Building Inspector shall determine, after prior investigation, whether the City shall instigate proceedings under the provisions of Kansas Statutes Annotated section 12-1750 et seq., as amended.

   C.   Notification To Initiate Proceedings: Prior to the expiration of the twenty (20) days established by subsection B of this Section, the Building Inspector shall notify the City Treasurer whether he or she intends to initiate proceedings under Kansas Statutes Annotated section 12-1750 et seq., as amended.

   D.   Time Limit To Proceed: If the Building Inspector has determined that proceedings under Kansas Statutes Annotated section 12-1750 et seq., as amended, shall be initiated, he or she will do so immediately, but no later than thirty (30) days after receipt of the monies by the City Treasurer.

   E.   No Proceedings; Return Of Funds: Upon notification to the City Treasurer by the Building Inspector that no proceedings shall be initiated under Kansas Statutes Annotated section 12-1750 et seq., as amended, the City Treasurer shall return all such monies received, plus accrued interest, to the insured as identified in the communication from the insurance company. Such return shall be accomplished within thirty (30) days of the receipt of the monies from the insurance company. (Ord. 948, 4-6-1992; amd. 1998 Code)

4-2-6: EXCESS MONIES AFTER REMOVAL:

If the Building Inspector has proceeded under the provisions of Kansas Statutes Annotated section 12-1750 et seq., as amended, all monies in excess of that which is ultimately necessary to comply with the provisions for the removal of the building or structure, less salvage value, if any, shall be paid to the insured. (Ord. 948, 4-6-1992; amd. 1998 Code)

4-2-7: DISPOSITION OF FUNDS; RELEASE OF LIEN:

If the Building Inspector, with regard to a building or other structure damaged by fire or explosion, determines that it is necessary to act under Kansas Statutes Annotated section 12-1756, any proceeds received by the City Treasurer under the authority of subsection 4-2-3A of this Chapter relating to that building or other structure shall be used to reimburse the City for any expenses incurred by the City in proceeding under Kansas Statutes Annotated section 12-1756. Upon reimbursement from the insurance proceeds, the Building Inspector shall immediately effect the release of the lien resulting therefrom. Should the expenses incurred by the City exceed the insurance proceeds paid over to the City Treasurer under subsection 4-2-3A of this Chapter, the Building Inspector shall publish a new lien as authorized by Kansas Statutes Annotated section 12-1756, in an amount equal to such excess expenses incurred. (Ord. 948, 4-6-1992; amd. 1998 Code)

4-2-8: EFFECT UPON INSURANCE POLICIES:

This Chapter shall not make the City a party to any insurance contract, nor is the insurer liable to any party for any amount in excess of the proceeds otherwise payable under its insurance policy. (Ord. 948, 4-6-1992)

4-2-9: INSURERS; LIABILITY:

Insurers complying with this Chapter or attempting in good faith to comply with this Chapter shall be immune from civil and criminal liability and such action shall not be deemed in violation of Kansas Statutes Annotated section 40-2404 and any amendments thereto, including withholding payment of any insurance proceeds pursuant to this Chapter, or releasing or disclosing any information pursuant to this Chapter. (Ord. 948, 4-6-1992)