HomeMy WebLinkAbout0810 t~e cost of i•econstruction and repair.
(b) insurance Trustee: 'The proceeds of insurance
collected on account of a cas~aalty, and the sums depositecl with the Insurance
Trustee by the Association from collections of assessments against apartment
o~vners on account of such casualty, shall constihite a construction fund which
shall be disbursed in pa~~ment of the costs of reconstructiun and repair in the
following manner and order: .
(1) Association-Lesser Damage: If the
amount of the estimated costs of reconsti•uction and repair that is the respon-
sibility of the Association is less ihan $5, OflO. 00, then *..he construction fund
shall be disbursed in payment of such costs upon the order of the Association;
provided, however, that upon request to the Insurance Trustee by a mortgagee
that is a beneficiary of an insurance policy the proceeds of ~vhich are included
in the construction fund, such funds shall be dis~ursed in the manner provided
for the reconstruction and repair of majoi• damage.
(2) Aseociation-14lajor Damage: If the
amount of the estimated costs of reconstruction and repair that is the respon-
sibility of the Association is more than ~5, 000. 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 and upon approval of an architect qualified to
practice in Florida and employed bv the Association to supervise the woY~k.
(3) Apartment OwnEr: The portion of
insurance proceeds representing damage for which the responsibility of recan-
struction and repair lies with an apartr~ient owner shall be paid by the Insurance
Trustee to the apartment owner, or if there is a mortgagee endorsement as to
the apariment, then to the apartment owner and the mortgagee jointly, ~vho may
use such proceeds as they may be advised.
(4 ) Surplus : It shall be presumed that
the first monies disbursed ii, payment of costs of reconstruction and repair
shall be from insurance proceeds. - If there is a balance in a construction fund
i after payment of all costs of the reconstruction and repair for •~rhich the fund
' is established, su~h balance shall be distributed to the beneficial o~vners of the
C fund in the manner else~vhere stated; except, ho~vever, that the part of the dis-
tribution to a beneficial o~vner that is not in excess of assessments paid by such
owner into the construction f;ind shall not be payable to any mortgagee.
~ (5) Certificates: Notwithstanding the prd-
~ visions of this Declaration, the Insurance Trustee shall not be required to de-
termine whether or not sums paid by the apartment owners upon assessments
shall be deposited bv the ~'lssociation ~vitli the Insurance Trustee, nor to deter-
mine whether the disbursements from the construction fund are to be upon the
order of the Associatian or upon approval of an architect ar other~vise, nor
~vhether a disbursement is to be made from the construction fund, nor to de-
termine the payee nor the amount to be paid. Ir.stead, the Insurance Trustee
~ may rely upon a certificate of the Association made by its President and Secre-
9 tary as to any or all of such matters and stating that the sums to be paid are
~ due and properly payable and stating the name of the payee and the amount to be
~ paid; provided that ~vhen a mortgagee is required in this Declaration to be named
~ as payee, the Insurance Trustee shall also t~ame the mortgagee as a payee of any
~ distribut~on of insurance proceeds to an apartment o~vner; and further provided
~ that tivhen the Association, or a mortgagee ±hat is the beneficiary of an insurance
~ policy whose proceeds are included in the constrtiction fund, so requires, the
~ anproval of an architect named by the Association shall ~e first ot~tained by the
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~ CARL F. EI.LWANGER ATTORNEY AT lAW P. O. BOX 1659 STUART. FLORIDA 394~4
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