HomeMy WebLinkAbout0628 the property upon the written direction and approval of the Asso-
ciation as to the payee and the amount to be paid from said proceeds.
All payees shall deliver paid bills and waiv~rs in mechanics' liens
to the Insurance Trustee, and execute any Affidavit required by law
or b~ the Association, and Insurance Trustee, and deliver same to
the Insurance Trustee.
. (d) Subject to the foregoing, the Board of Directors
shall have the right and obligation to neqotiate and contract for
the repair and restoration of the premises. _ _ _
(e) If the net proceeds of the insurance are insuff icient
to pay for the estimate cost of restoration and repair (or for the
actual cost thereof if the work has actually been done), the Asso-
ciation shall promptly upon determination of the deficiency, levy
a special assessment against all unit owners in proportion to the
unit owners' share in the common elements for the portion of the
deficiency as is attributable to the cost of restoration of the
common elements, and aqainst the individual unit owners for that
portion of the deficiency as is attributable to his individual unit;
provided, however, that if the Board of Directors finds that it
cannot determine with reasonable certainty the portion of the .
def iciency attributable to specific indi~idual damaged unit(s),
then the Board of Directors shall levy the assessment for the total
deficiency against all of the unit owners in proportion to the unit
owners' share in the common elements as if all of said damage had
- occurred to the common elements. The special assessment funds shall
be delivered by the Association to the Insurance Trustee and added
by said Trustee to the proceeds available for the repair and~res-
toration of the property.
(f) Ir. the event the insurance proceeds are sufficient
to pay for the cost of restoration and repair, or in the event the
insurance proceeds are insufticient but additional funds are raised
by special assessment within ninety (90) days after the casualty
so that sufficient funds are on hand to fully pay for such restora-
tion and repair, then no mortgagee shall have the right to require
the application of insurance proceeds to the payment of its loan,
provided however, that this provision may be waived by the Board of
Directors in favor of any institutional first mortgagee upon request
therefor at any time. To the extent that any insurance proceeds are
required to be paid over to such mortgagee, the unit owners shall be
'f obligated to replenish the funds so paid over, and said unit owner
; and his unit shall be subject to special assessment for such sum.
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~ 6. ~"Very~Substantial" Dama e. As used in this Declara-
tion, or any other context c~ealing wit this condominium, the term
"very substantial" damage sha1Z mean loss or damage whereby three-
fourths (3/4) or more of the total unit space of the condominium
is rendered untenantable, or loss or damage whereby seventy-f ive -
~ (75$) percent, or more of the total amount of insurance coverage-
(placed pursuant to Article XII B-1), becomes payable. Should
such "very substantial" damage occur, then:
(a) The Board of Directors of the Association shall
promptly obtain reliable and detailed estimates of the cost of
repair and restoration.
(b) The provisions of Article XII B-5 (f) shall not
be applicable to any institutional first mortgagee who shall have
the right, if its mortgage so provides, to require applications of
~ the insurance proceeds to the payment or reduction of its mortgage
debt. The Board of Directors shall ascertain as promptly as pos-
~ sible the net amount of insurance proceeds available for restoration
~ and repair.
~
(c) Thereupon, a membership meeting shall be called by
R the Board of Directors of the Association, to be held not later than
sixty (60) days after the casualty, to determine the wishes of the
y
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