HomeMy WebLinkAbout0626 the premiums for such coverage and other expenses in connection with
such insurance shall be paid by the Association and charqed as a
common expense. The-.company or companies with whom the Association
shall place its insurance coverage as provided in this Declaration .
must be good and responsible companies authorized to do business in s
the Sta~e of Florida. The Association shall have the right to desig- j~
nate the Insurance Trustee. '
2. Loss Pa able Provisions - Insurance Trustee. All
policies purchase by e Associat on s a e or the benefit of
the Association, all unit owners and ino'rtgagees aE their interests may
appear. Such policies shall be deposited with the Insurance Trustee (as
hereinafter defined), who must first acknowledge that the poticies
and any proceeds thereof will be held in accordance with the terms
hereof. The Insurance Trustee shall be the named insured and it
shall not be necessary to name the Association or the unit owners; :
however, a mortgage endorsement shall be issued. Said policy shall
provide that all insurance proceeds payable on account of loss or :
damage shall be payable to the Insurance Trustee, which may be any
~ bank in Florida with trust powers as may be approved by the Board
of Directors of the Association and by the Cflnstruction I.ender,
which Trustee is herein referred to as the "Insurance Trustee".
The Insurance Trustee shall not be liable for the payment of pre- _
miums nor for the renewal or the sufficiency of policies, nor for
the failure to collect any insurance proceeds, nor for the form or ~
contents of the policies. The sole duty of the Insurance Trustee _
shall be to receive such proceeds as are paid and hold the same in ~
trust for the purposes elsewhere stated herein, and for the benefit
of the Association, the unit owners ancl their respective mortgagees,
in the following shares, but such shares need not be set forth upon
the records of the Insurance Trustee.
(a) Common Elements: Proceeds on account of damage
to coimnon elements - an undivided share for each unit owner, such .
share being the same as the undivided share in the commaon elements
appurtenant to his unit. Limited common elements shall be treated
as common elements.
(b) Condominium Units: Proceeds on account of Condo-
minium units shall be in the following undivided shares:
' 1. Partial Destruction - When units are to~be _
~ repaired and restored - for the owners of the damaged units in pro- .
s portion to the cost of repairing the damage suffered by each unit
~ owner.
2. Total Destruction of Condomi.nium Improvements _
or Where "Very Substantial" Damage Occurs and the Condominium
Improvements are not to be restored as provided hereinafter in this
Article - for the owners of all condominium units, each owner's share
being in proportion to his share in common elements appurtenant to
his condominium unit. ~ ~
(c) Mortgagees: In the event a mortgagee endarse-
ment has been issued as to a unit, the share of a unit owner shall
be held in trust for the mortgagee and the unit owner as their ~
interests may appear; provided, however, that no ~nortgagee shall
have the right to determine or participate in the determination as ~
to whether or not any damaged property shall be reconstructed or
repaired.
~ 3. Distribution of Proceeds. Proceeds of insurance
policies received by the Insurance Trustee shall be distributed to
or for the benefit of the beneficial owners and expended ~r dis-
~ bursed after first paying or making provision for the payment of
~ the expenses of the Insurance Trustee in the follocaing manner:
(a) Reconstruction or Repair: If the damage for
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