HomeMy WebLinkAbout0013 (d) Mort a ees. In the event a Tor~gagee endorsemont
~as been issue as to an ~partment unit, the share of the
una. t owr:er shal l be held in trus t f or the mortgagee aRd the
unit ow:~er a~ their interests may appear; provided, however,
that no mortga~ee shall have any right to detsrmi~e or
participa±e in the determina±i.on as to whether any damaged
~roperty shall be reconstructed ar repaired, and ~o martgagee
shall have any right w~ apply or have applied to the
reduction af a mortgage debt an~ insurance procee~is except
distributions of such proce~ds made to the apartment owner
and mortgagee pursuant to tne provisians of this Declaration.
Notwithstanding the foregoing the mortgagee sha~l have the
right to apply or have applied to the reduction of its
mortgage debt any debt or sums of insurance procee~s
applicatle to its mortgaged unit i~ any of the following
events.
(1) Its mortga4e is not in good standing and
is in default.
(2) Insura~ce proceeds are insufficient to
restore or repair the building to the condition
existing prior to thz ioss and additional monies
are not available for such purpose.
10.~ Distribution of Proceeds. Proceeds of insurance
policies receive y t e Insurance Trustee shall be d~stributed
to or for the benefit of ±he beneficial o~tirners in the followi;~g
manner:
(a) All expenses of the Insurance Trustee shall be
paid first or provisions r;ade for such payment.
(b) If the d~mage for w~zch the proceeds are
paid is to be repaire~ or recenstructed, the zemaininc~
proceeds shaZl be paid to defray the cost thereof as
elsewhere provided. Any proceeds remaining a£ter defraying
such cost shal~l be c~istributed to the beneficial
owners, remittances to apartment owners and their mortgagees
being payable jointly to them. This is a coven~nt for the
bene£it of , and r~ay be en~orced b•f, any mortgagee of ~n
apartment.
(cj If it is determined in the manner elsewhere
provided that the damag~ for which proceeds are paid shall
not be recGnstructed or repa~red, the remaining proceeds
shall be distributed to the bene£icial o~mers,
remittances to apartrr~ent owners and their mortgagees
! being payable jointly to them. This is a covenant for
the benefi± of, and may be enforced by, the mortgagee of
an apartment. •
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~ (d) In making distribution to apartment owners and
~ thei~ mortgagees, the insurance Truste~ may rely
! upan a Certificate of the Association made by its
; Preside~?t and Secretary as to ~he names of the apartment
owners and their respective shares of the ~istribution.
! 10.6 Association as A ent.. The Association is hereby
irrevocably
ap- po
nte Agent or each apartment owner and f~r
~ each owner ef any other interest in the Condominium property
to adjust all claims arising under the insurance p~licies
~;uzehased by the Associatien and to execu~e and deliver
r~leases upon the payment of a claim.
10.; Recreation Area. The terms of the Ninety-Nine Year
Lease shall,,,~overn ~ e distribution of proceed~ of insuran~~
on or-at±,-ibutable to such ar~a, prc~i~ed, however, that no
~ distr~bution of proceeds shall be made to the Le~~or un:tess it
; sha?1 have been determined pursuant ta the terms and
' pi-ovisions of the said Ninety-Nine Yedr Lease not to reconstruct
! or repair damage to the property demised thereunder.
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