HomeMy WebLinkAbout2345 Association in order t~o provide funds for payment of ~osts of reoonstn~
tion and repair that is the responsibility of the Association is irore than
$5,000.00, then the suns paid upon such assessments shall be deposited by
the Association with the Insuranc.~e Trustee. In all oth~x cases the As,so-
ciation shall Yx~ld the suris paid upon such assessments and disburse the same
in payment of the oast of re~onstruction and repair.
(b) Insurarx.~e Z'ru.stee : The proceeds of insurarx_-e vol-
lected on acoount of a casualty, suns deposited with the Insurance
Trustee by the Association fran oollections of assessments against apart-
ment vwners on acoount of such casualty, shall oonstitute a o~nstnxction
fur~d which shall be disbursed i.n paycnent of the vosts of revonstruction and
repair in the followi.ng manner and order:
_ (1) As.soci.ation - Lesser Da~nage: If the aimunt of
the estimated v~sts of reoonstruction and reFair that is the responsibility
of the Association is less that $5,000.00, then the oonstruction fund shall
be disbursed in paym~,nt of such vosts upon the order of the Association; pro-
vided, haw~ever, that upon r~st tA the Insurance Tru.stee by a mortgagee
that is a beneficiary of an iflsuranc.~e policy the proceeds of which are in-
cluded in the oonstruction~fund, such f~ds shall be disbursed in the manner
provided for the x~oonstruction and r~air of major dam~ge.
;
(2) Association - Ma~or Damage: If.the amaunt of
the estimated oosts of reoonstruction and repair that is the resp~nsibility
of the Association is mc~re than $5,000.00, then the eonstniction fund shall
be disbursed in payment of such oosts in the manner required by the Board
of Directors of the Association and upon approval of an architect qualified
to practioe in Florida and a[q~loyed by the Association to supexvise the work.
( 3) Aparfltient Owner : The portion of insurance
pra~eeds representing damage for which the responsibility of reoonstruction
and r~air lies with an apartment vwner shall be paid by the Insuranc~e
Trustee tA the ap~artmer?t c~mer, or if there is a mc~rtgagee en3orsanP_nt as
to the apartment, then to the apartment aaner and the tmrt,gagee jointly, who
m~Y use such proceer]s as they may be advised.
(4) Swcplus: It shall be presuned that the first
imnies disbursed in paytnent of oosts of rev~nstruction and repair shall be
from insuranc.~e proceeds. If there is a balanc~e in a oonstruction fund after
palm?ent of all oosts of the reoonstruction and repair for which the fund is
established, such balan~e shall be distribut~ed to the beneficial awners of
the fund in the manner else~ahere stated; except, haa~ver, that the part of
the distribution to a beneficial awner that is not in excess of assessments
paid by such awner into the oonstruction fund shall not be payable t~o ar~y
m~rt~gagee.
(5) Cextificates: Notwithstanding the provisions
of this Declaration, the Insurance Tru.stee shall not be required t~ deter-
mine whether or not suns paid by the apartment awners upon assessments shall
be deposited by the Association with the Insurance Trustee, nor to deterntine
whether the disbursanents from the oonstruction fimd are to be upon the
order of the Association or upon approval of an architect or otheiwise, rar
whether a disbursement is tA be made frcm the oonstruction fu~d, nor to de-
termine the payee nor the am~unt tA be paid. Irastead, the Insurance ZYustee
may rely upon a certificate of the Association made by its President and Sec-
retary as to any or all of such matters and stating that the suRS to be paid
are due and properly payable ar~i stating the name of the payee and the airount '
to be paid; pravided that when a i[nrt~qagee is required in this Declaxation ~
tA be namec3 as payee, the Insuranc_~e Trustee shall also name the m~rtgagee ~
as a payee of any distribution of insuranoe prooeeds to an apa~'tment awr~er;
and further provided that when the Association, or a tmrtgagee that is the
beneficiaYy of an insuranoe policy whose proeeeds are included in the o~n- ~
struction fund, so requires, the appraval of an architect named by the Asso-
ciation shall be first obtained by the Association upon disbursements in pay-
ment of o~sts of reoonstruction and repair.
XI . I~E I~S'I'RICTIQQS :
Tl~e use~ of the oondominiun property shall be in acvordance
with the follcxaing provisions as long as the oorx~aminiun exists and the
. - 223 ~~,F~2 i~5 -
- CARL F. [LLWANGtR ATTORNEY AT LAW P. O. BOX fs60 STUART. FLORIDA 33494