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BILL NO. 5 1 e93
SPONSORED BY COUNCILMAN
ORDINANCE NO. /0
AN ORDINANCE OF THE CITY OF .JEFFERSON, MISSOURI, AMENDING
ORDINANCE NO. 9831, DANGEROUS BUILDINGS CODE, BY ENACTING ONE NEW
SECTION PERTAINING TO INSURANCE PROCEEDS FROM DAMAGE OR LOSS TO
BUILDINGS OR STRUCTURES.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI,
AS FOLLOWS:
Section 1. Ordinance No. 9831, Dangerous Buildings Code, is
hereby amended by enacting one new section pertaining to
insurance proceeds from damage or loss to buildings or
structures, which shall read as follows :
Section 8-110. 1.
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, and if the covered claim
payment is in excess of fifty percent ( FAO% ) of the face
value of the policy covering a building or other structure,
then the following procedure shall apply:
Auk
( 1 ) The insurer shall withhold from the covered claim
payment ten percent ( 10% ) of the covered claim payment,
and shall pay that amount 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 section. If a special tax bill or
assessment is issued by the City for the expenses of
demolition of such building as a dangerous building, the
moneys held by the City shall be applied toward payment
of special tax ball or assessment. If there is any
excess, it shall be paid. by the City to the insured or as
. the terms of the policy, including any endorsements
thereto, provide.
(2 ) The City shall release the proceeds and any interest
which 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 thirty ( 30) days after receipt of such insurance
moneys, unless the City has instituted legal proceedings
under the provisions of Sections 8-108 and 8-109. If the
City has proceeded under the! provisions of Sections 8-108
and 8-109, all moneys in excess of that necessary to
comply with the provisions of Sections 8-108 and 8--109
for the removal of the building or structure, less
salvage value, shall be paid to the insured.
(3) The City may certify that, in lieu of payment of all
or part of the covered claim payment under this section,
it has obtained satisfactory proof that the insured has
or will remove debris and repair, rebuild or otherwise
make the premises safe and secure. In this event, the
city shall issue a certificate within thirty ( 30) days
after receipt of proof to permit covered claim payment to
the insured without deduction. It shall be the obligation
of the insured or other person malting claim to provide
the insurance company with the written certificate
provided for in this subsection.
(4 ) No provision of this section shall be construed to
make the City a party to any insurance contract.
Section 2. The City Clerk is hereby directed to deliver a
copy of this ordinance to the Director of Insurance within
fourteen ( 14 ) days after its passage and approval.
Section 3. This ordinance shall be in full force and effect
from and after its passage and approval.
Passed -/7-- < w Approved
PrP iding Off ' er Mayor
ATTEST:
-A)
City Clerk