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HomeMy WebLinkAbout1335 ~ (2) INSURANCE TI~JSTBE. The proceeds of insur- i ance collected on account of a casualty, and the suma deposited with ` the Insurance Trustee by the Association francollections of assess- ~ ments against apartment owners on account of such casualty shall con- stitute a construction fund which shall be disbursed in payment of the costs of reconstruction and repair in the following manner and order; a. Association--lesser damage. If the amount of the estimated costs of reconstruction and repair is less than $5,000.00, then the construction fund shall be disbursed in payment of such costs upon the order of the Association; provided, how~ever, that upon request tn the Insurance Trustee by a mortgagee that is a beneficiary of an insurance policy the proceeds of which are included in the construction fund, such fund shall be disbursed in the manner provided for the reconstruction and repair of ma~or damage. b. Association--maior dama~e. If the amount of the estimated costs of reconstruction and repair is more than $5,000.00 then the construction fund shall be disbursed in payment of such costs and in the manner required by the Board of Directors of the Association and upon approval of an architect qualified to practice in Florida and employed by the Association to supervise the work. c. Surplus. It shall be presumed that the first moneys disbursed in payment of costs of reconstruction and repair shall be from insurance proceeds. If there is a balance in a construction fund after payment of all costs of the reconstruction ~ and repair for which the fund is established, such balance shall be ~ distributed to the beneficial owners of the fund in the manner else- ; where stated; except, however, that the part of s distribution to a " beneficial owner that is not in excess of assessments paid by such owner into the construction fund shall not be made payable to any mortgagee. d. Certificate. Notwithstanding the provisions of this instnmments, the Insurance Trustee shall not be required to determine whether or not sums paid by the apartment owners upon assess~ ments shall be deposited by the Association with the Insurance Trustee, nor to determine whether the disburs~ments from the construction fund li are to be upon the order of the Association or upon approval of an i architect or otherwise, nor whether a disbursement is to be made from ~ the construction fund nor to determine the payee nor the amount to be C paid. ~Instead, the Insurance Trustee may rely upon a certificate of the Association made by its President and Secretary as to any and all of such matters and stating that the stnns to be paid are due and properly payable and stating the name of the payee and the amount to be paid; provided that when a nortgagee is required in the instrument to be named as payee, the Insurance Trustee shall also name the mortgagee as a payee in any distribution of insurance proceeds to a unit owner; and further provided that when the Association, or a mortgagee that is the benefici- ary of an insurance policy whose proceeds are included in the construction fund, so requires, the approval of an architect named by the Association shall be first obtained by the Association upon disbursements in payment ~ of costs of reconstruction and repair. ~ 22". AiTrHORITY TO EXECUTE LFASE. The Association shall execute the lease attached hereto as F.~chibit "C" Wherein IANDMARR VILIAS, INC. is the lessor and the Association is the lessee. The Associstion shall ~ abide by all the terms and conditionsof said lease. ~ ~ 22.1 SUBLFASE. The original purchaser of the condominium ~ unit from the developer shall be required to execute as sublessee a ~ lease in the form attached hereto as Exhibit "D". ~ - ~ ~ ~ ~ Page eleven ~ ~ ~ p ~ ~ ~ ~ ~ 800K 1S~ PAGE 1~~~ s ~ • ~ { v ~x _ : , ~ ~