HomeMy WebLinkAbout2024 damage to common elements shall be in proportion to the
owner's obligation for comnon expenses.
. 11.6 Construction ~nds. The funds for payment of costs
of reconstruction and repair after casualty, which shall
consist of proceeds of insurance h~ld by the Insurance
Trustee and funds collected by the Association from assess-
ments against apartment avners, shall be disbursed in payment
of such costs in the following manner:
(a) Association. If the total of assessments made
by fihe Association in order to provide funds for the payment
of costs of reconstruction and repair that is the responsi-
bility of the Association is more than $10,000.00, then
the sums paid upon such assessments shall be deposited by
the Association with the Insurance Trustee. In all other
cases the Association shall hold the sums paid upon such
assessments and disburse them in payment of the cosfis of
reconstruction and repair.
(b) Insurance Trustee. The proceeds of Insurance
collected on account of casualty, and the sums deposited
with the Insurance Trustee by the Association from collec-
tions of assessments against apartment owners on account of
such casualty shall constit~.ite a construction fund which
shall be disbursed in payment of the costs of reconstruction ~
_and repair in the following manner and order: , 1
- (1) Association - Lesser damage. If the amount ?
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 the Association; provided, hawever, that upon request
to the Insurance Trustee by a mortgagee that is a
beneficiary of an insurance policy the proceeds of
which are included in the construction fund, such
; fund shall be disbursed in the manner provided for
~ the reconstruction and repair of major damage.
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~ (2) Association - Major damage. If the amount
; of the estimated costs of reconstruction and repair
; that is the responsibility of the Association is more
~ than $10,000.00, then the construction fund shall be
' disbursed in payment af such cost~ in the manner
~ required by the Board of Directors of the Association.
a
~ (3) Apartment owner. The portion of insurance
{ proceeds representing damage for which the responsi-
~ ~ bility of reconstruction and repair lies with an
4 apartment owner shall be paid to the said owner,
~ or if there is a mortgage endorsement as to the apart-
~ ment, then the awner thereof and the mortgagee jointly,
; who may use such proceeds as they may be advised.
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(4) Surplus. It shall be presumed that the first
~ monies disbursed in payment of costs of reconstruction
~ and repair shall be from insurance proceeds. If ~
there is a balance in a construction fund after pay-
ment of all costs of the reconstruction and repair
for which the fund is established, such balance shall ?
be distributed to the beneficial owners of the fund ~
in the manner elsewhere stated; except, however, that
the part of a distribution to a beneficial owner that
is not in excess of assessments paid by such owner to the =
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