Can't use romex in commercial 'round here either... In mixed use buildings we can use it in the residential portion seperated by a 2-hour wall and ceiling envelope.
Local code:
336-5(a). ( Uses Not Permitted )
Add a new section as follows:
(10) In any nonresidential structure or occupancy.
From what I understand, and it is eveident in the construction of many buildings here, that early on romex in its early incarnations wasn't allowed in residential either. Apparently held out until the mid-late sixties. The story Ol' Uncle Joe told me was that some Mayors daughter died in what was deemed an "electrical fire", and that new fangled "romex" was blamed. So you'll see homes wired in K&T up until then.
Other than that, pic #1 obviously had other issues with OCP, on top of the insulation failure.
