HomeMy WebLinkAbout0015 11.5 As~essments. if the ~~•iceed5 of insurancP are ~ot
sufficieni to e ray the~ es~imated casts of r~constri~ction and
xepa~r by the Ass~ciaticn, or if at any time cluring recon~tructx~~n
- 3r.. repair, or upon com~leti~n o~ reconstr•,ction a~d repair, the
f~i:~:'~ ~'or ti~e payment of the costs of rec:.~• ~truction and repair
are insuffxcient, assessments shall be made ~~guinst ~:he apart-
ment awners who o~m the damaged apartments, and against all
apartment~ owners in the ~ase of damage to common elements,
in sufficient amounts to provi.de fun~ls for the r~ayment of such costs
S~ach assessments aqainst apartment owners for damage to apartments
shall be ii~ proportion to the cost~ of reconstruction and repair
of their respective units. Such as~Pssments on account of damage
to common elements shall be in proporti.on to the owner's
obligation for ccmmon expenses.
11.6 Construction Funds. The funds for ~iayment of costs
of reconstruction an xepair after casualty, which shall consist
of proceeds of insurance held by the Insurance Trustee and funds
collected by the AssociaLior~ fl-u~~~ assessraents agai~st apartment
o;rmers, shall be disbursed in payment of such costs in the
follo~vin~ manner:
(a) Association. If the total of assessments made
by th~ Association in order to provide funds for the
payment of costs of reconst~uction and repair that is _
the responsibility if ±he Association is more than,
$10,000.00, then the sums paid uPon such assessments shall
be deposited by the Associatio~=with the Insurance irustee.
In all ot}~er cases the Association shall hold the sums
paid upon ~uch assessments af~ci disburs~ them in payment
of the ~~sts of reconstruction and repair.
(b) Insurance Trustee. The proceeds of Insuraace
~ collected on account of casualty, and the s~~ms ~epositeci
with the I~surance Trustee by the Association from
` rn-~.'-~~~1ons of assessments against apa;tment owners
v of such casualty shall cons~itute ~
ion fund whi.ch shall b~ disbursed in payment of
the casts of reconstruction and repair ir~ the following
! manner and order:
(1) Association - Lesser damage. If the
zmount of the estimated costs of reconstruction
~ and repair that is the responsibility of the
~ Association is less than $10,000.00, then the
~ construction fund shall be disbursed in payment of
such costs upon the order of t;~e Asseciation;
provided, hcwever, that upon request to ~he
Insurance Trustee by a mortgagee that is ~
~ beneficiary of an insurance policy the proceeds of
~ which are includeci in the canstruction fund, such
fund shall be disbursed in the manner previded for
the reconstructicn and repair of major damage.
(2) Association - Major damage. If ~he amount
~ ~f ~he esTimate costs c~ recor.s+ruction and repair
that isthe responsibility of the Association is more
than ~10,U00.00, then the construction fund shall
be disbursed in payment of such costs in the manner
~ required by the Board of Directors of the Association.
~
~ (3) Apartmer~t owner. The portion of ir.surance
~ proceeds r~pres~nting damage for t,fiich the
~
~ responsibility of ~econstruction and repair lies ~~ith
an apartme:~t owmer shall ~e paid to the said owner,
~ or if there is a mortgayee endorsement as t~ the
~ apartments then to the ov.~ner there~f and the
~ mortgagee jeintly, who may use such proceeds as
they may he advised.
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