Fulton Dangerous buildings resulting from insured casualty ordinance (§ 46-8)

As to damage or loss to a building or other structure caused by or arising out of any fire, explosion, or other casualty loss, if an order is issued by the building commissioner as provided in section 46-6, and a special bill or assessment is issued against the property, it shall be deemed a personal debt against the property owner. If there are proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure caused by or arising out of any fire, explosion, or other casualty loss, the following procedure is established for the payment of up to 25 percent of the insurance proceeds, as set forth in this section. This section shall apply only to a covered claim payment that is in excess of 50 percent of the fact value of the policy covering a building or other structure:

(1) The insurer shall withhold from the covered claim payment up to 25 percent of the covered claim payment and shall pay such moneys to the city to deposit into an interest-bearing account. Any named mortgagee on the insurance policy shall maintain priority over any obligation under this chapter.

(2) The city shall release the proceeds and any interest that has accrued on such proceeds received 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 moneys, unless the city has instituted legal proceedings under the provisions of this section. If the city has proceeded under the provisions of this section, all moneys in excess of that necessary to comply with this chapter for the removal of the building or structure, less salvage value, shall be paid to the insured.

(3) If there are no proceeds of any insurance policy as set forth in this section, at the request of the taxpayer, the tax bill may be paid in installments over a period of not more than ten years. The tax bill from date of its issuance shall be a lien on the property and a personal debt against the property owner(s) until paid.

(4) This section shall apply to fire, explosion or other casualty loss claims arising on all buildings and structures.

(5) This section does not make the city a party to any insurance contract, and the insurer is not liable to any party for any amount in excess of the proceeds otherwise payable under its insurance policy.

(6) The building commissioner may certify, in lieu of payment of all or part of the covered claim under this section, that it has obtained satisfactory proof that the insured has removed or will remove the debris and repair, rebuild, or otherwise make the premises safe and secure. In this

event, the building commissioner shall issue a certificate within 30 days after receipt of proof to permit covered claim payment to the insured without the deduction pursuant to this section. It shall be the obligation of the insured or other person making the claim to provide the insurance company with the written certificate provided from the building commissioner.