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HomeMy WebLinkAbout1332 interests may appear, and shall provide that all procee3s covering property losses ahall be paid to The Florida National Bank at I.akeland, °1ar3da, ss Trustee, or to such other bank in Florida with trust pow~ers as may be designated as insurance trustee by the Board of Directors of the Association, which trustee is referred to in this instrument as tiie Insurance Trustee. The Inaurance Trustee shall not be liable for payment of premiums nor for the renewal or the sufficiency of policies nor for the failure to collect any insurance proceeds. The duty of the Insurance Trustee shall be to receive such proceeds as are paid and hold the proceeds in trust for the purposes elsewhere stated in this instrument and for the benefit of the apartment owners and their mortgagees in the following $hares, but wUich shares need not be set forth nn the records of the Insurance Trustee. (1) COi~[ON ELErIENPS. Proceeds on account of damage to comnon elements an undivided share for each apartment owner, such share being the same as the undivi~ed share in the common elements appurtenant to his apartment. (2) APARTMENTS. Proceeds on account of damage to apartments shall be held in Che following undivided shares: ~ a. When the buildin~ is to be restored--for the owners of damaged apartments in proportion to the casts of repairing the damage suffered by each apartment owner, which cost shall be deter- mined by the Association. ' b. When the buildinR is not to be restored-- an undivided share for each apartment owner, such share bei ng the same as the undivided share in the common elements appurtenant to his apartment. (3) MORTC~GESS. In the event a mortgagee endorse- ment has been issued as to an apartment, the share of the apartment owner shall be held in trust for the mortgagee and the apartment owner as their interests may appear; provided, however, that a mortgagee shall have the right to determine or participate in the determination as to whether or not any damaged property shall be reconstructed or repaired, and the mort- gagee shall have the right to apply or have applied to the reduction of a mortgage debt any insurance proceeds payable to the apartment owner and ~rtgagee pursuant to the provisions of this Declaration. ; ' 20.5 DISTRISUTION OF PROCBEDS. Proceeds of insurance ~ policies received by the Insurance Trustee shall be distributed to or for E the benefit of the beneficial owners in the following manner: i (1) FXPENSE OF THE TRIIST. All expenses of the Insur- € ance Trustee shall be paid first or provision made for such payment. { ~ (2) RECONSTR[TCTION OR REPAIR. If the damage for which the proceeds are paid is to be repaired or reconstructed, t~`he remain- ~ ing proceeds shall be paid to defray the costs of such as elsewhere pro- vided. Any proceeds remaining after defraying such costs shall be distri- ~ buted to the beneficial owners, remittances to apartment owners and their mortgagees being payable jointly to them. This is a covenant for the ~ benefit of any mortgagee of an apartmen't and may be enforced by such mort- ~ gagee. J ° (3) FAILURE TO R~CONSTRITCT OR REPAIR. If it is ~ determined in the manner elsewhere provided Chat the damage for which ; proceeds are paid shall not be reconstructed or repaired, the remaining 5 proceeds shall be distributed to the beneficial owners, remittances to ~ apartment owners and their mortgagees being payable jointly to them. This is a covenant for the benefit of any mortgagee of an apartment and may be 3 ~ enf orced by such mortgagee. ~ Page eight ~ r ~ ~ ~ 600K 1~~ PAGE 1330 , ~ ~ ~ - . ~ ~~~_..:~ti _ -