§ 2-298. Same—Lien established.

(a)

The unified government board of commissioners hereby creates a lien in favor of the unified government on the proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure located within the city where the amount recoverable for all the loss or damage to the building or other structure under all policies is in excess of 75 percent of the face value of the policies covering such building or other insured structure. The lien arises upon any unpaid tax, special ad valorem levy, or any other charge imposed based upon real property by or on behalf of the unified government which is an encumbrance on real property, whether or not evidenced by written instrument, or such tax, levy, assessment, expense or other charge that has remained undischarged for at least one year prior to the filing of a proof of loss.

(b)

Prior to final settlement on any claim covered by subsection (a) of this section, the insurer or insurers shall contact the treasurer of the unified government to determine whether any such encumbrances are presently in existence. If the same are found to exist, the insurer or insurers shall execute and transmit in an amount equal to the owing under said encumbrances a draft to the treasurer of the unified government.

(c)

Such transfer of proceeds shall be on a pro rata basis by all insurance companies insuring the building or other structure.

(Code 1964, § 15-15; Code 1988, § 2-215; Ord. No. 64185, §§ 1—3, 11-24-1982; Ord. No. O-9-98, § 1, 3-5-1998; Ord. No. O-49-16 , § 1, 7-28-2016)

Cross reference

Fire prevention and protection, ch. 15.