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Bill No. 42 -16 <br />ORDINANCE NO. <br />AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, <br />INDIANA AUTHORIZING AND DIRECTING SUBMISSION OF A WRITTEN <br />REQUEST TO PARTICIPATE IN THE INDIANA DEPARTMENT OF INSURANCE'S <br />AVAILABLE INSURANCE PROCEEDS SET ASIDE PROGRAM <br />STATEMENT OF PURPOSE AND INTENT <br />The State of Indiana, through the Indiana Department of Insurance C'11)o ), administers <br />the "available insurance proceeds set aside" program. For municipalities that specifically elect to <br />be governed by the applicable law, this program provides them with notice and certain protections <br />in the event that insurance proceeds are available due to damage caused by fire or explosion to a <br />building in their community. <br />At the time of the.final settlement of an eligible claim, participating cities are given notice <br />of the settlement and an opportunity to respond to the insurance carrier. In qualifying instances, <br />the participating city can require a statutorily set percentage or amount of the insurance proceeds <br />to be paid to the city, to be held in escrow, and potentially used for demolition, remediation, or <br />other unsafe building expenses following any necessary legal action. The law is designed to <br />provide some protection to cities from property owners who might choose to take insurance <br />proceeds and fail to repair or clean up their damaged property. The potential benefits from this <br />program far outweigh the modest $100.00 registration fee to participate in the program. As a result, <br />the City of South Bend has determined that it would be advantageous to opt into the available <br />insurance proceeds set aside program. <br />The purpose and intent of this ordinance is to confirm South Bend's election to be governed <br />by Indiana Code § 27 -2 -15 et seq., and further to authorize and direct South Bend's participation <br />in IDOI's available insurance proceeds set aside program, and to direct payment of the associated <br />registration fee. <br />NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE <br />CITY OF SOUTH BEND, INDIANA as follows: <br />Section I. Pursuant to Indiana Code § 27- 2- 15- 4.4(axl), the City of South Bend, Indiana <br />elects to be governed by Indiana Code 27 -2 -15 et seq., otherwise known as the Indiana Department <br />of Insurance's "Available Insurance Proceeds Set Aside" program. <br />Section H. Pursuant to Indiana Code § 27- 2- 15- 4.4(a)(2), the City of South Bend <br />designates its Director of the Department of Code Enforcement as the specific individual who will <br />act on behalf of the enforcement authority with respect to Indiana Department of Insurance <br />Proceeds Set Aside Program. The contact information for the Director of the Department of Code <br />Enforcement is: <br />Director, Department of Code Enforcement <br />City of South Bend <br />