Fulton Same—Insurance proceeds ordinance (§ 18-8)

If there are proceeds of any insurance policy based upon a covered claim payment for damage or loss to a building or structure caused by or arising out of any fire, explosion, or casualty loss and if the covered claim payment is in excess of 50 percent of the face value of the policy covering the building or other structure, the following procedure shall apply:

(1) The insurer shall withhold from the covered claim payment ten percent thereof and shall pay such monies to the city to deposit into an interest bearing account; except, however, monies due or owed to a mortgagee as shown by the policy of insurance shall be paid in full before such monies are withheld.

(2) The city shall release the proceeds and any interest which has accrued on such proceeds under subsection (1) of this section to the insured or as the terms of the policy and endorsements thereto provide within 30 days after receipt of such insurance monies, unless the city has

instituted legal proceedings to enforce the tax bill and assessment against the property and the property owner. All monies in excess of those necessary to repair, demolish, or remove the structure or building, less salvage value, shall be paid to the insured.

(3) The property owner and taxpayer shall not be entitled to pay the tax bill in installments if there are insurance proceeds available for the payment of the tax bill.

(4) The tax bill shall be a lien on the property until paid in full.