1. (a) Upon a judgment being rendered under IC 36-7-9-13 (c) or IC 36-7-9-13 (d), the municipality is entitled to the available insurance proceeds set aside only:

   1. (1) to the extent of the costs set forth in IC 36-7-9-12 ; and

   2. (2) for demolition and rehabilitation expenses certified under section 5(b) of this chapter.

      Available insurance proceeds set aside under section 5 of this chapter may not be used to pay the costs of fire service, police service, or any other service provided in the normal course of the municipality's business.

2. (b) All claims by the municipality against the available insurance proceeds must be made within one (1) year after the date of the fire or explosion or within one (1) year after the final outcome of a case or appeal initiated under IC 36-7-9 , whichever is later. Proceeds in the escrow account that are not claimed in this manner shall be paid to the insured.

As added by P.L.247-1989, SEC.2. Amended by P.L.238-2013, SEC.9.