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(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.
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~ 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".
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