(a) 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 75 percent 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 not to exceed the sum of 15 percent of the covered claim payment unless the enforcement official 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 has repaired, rebuilt or otherwise made the premises safe and secure.

(b) Companies insuring the building or other structure shall transfer such funds based on each company’s pro rata share of the settlement of the covered claim. Policy proceeds remaining after the transfer to the City shall be disbursed in accordance with the policy terms.

(c) Upon the transfer of the funds as required in this section, the insurance company shall provide the City with the name and address of the named insured, or insureds, the total insurance coverage applicable to the building or other structure, and the amount of the final settlement agreed to or arrived at between the insurance company or companies and the insured or insureds, whereupon the enforcement official shall contact the named insured or insureds by certified mail, notifying them that the insurance proceeds have been received by the City and apprise them of the procedures to be followed under this chapter. (Ord. 19370 § 3, 3-23-10. Code 1995 § 2-363.)