HomeMy WebLinkAbout0370 {
~
1
faith or gross negligence, and then for only such money !
which comes into its possession. Whenever the Insurance
Trustee maybe required to make distribution of insurance
proceeds to Owners and their mortgagees, as their respective
interests may appear, or to any other party for ~epair, ~
replacement or reconstruction of property, the Insurance ;
Trustee may rely upon a Certificate of the President and the #
Secretary of the Condominium Association executed under • f
oath, which Certificate will be provided to said Insurance t
Trustee upon request made to the Condominium Association. i
Such Certificate is to certify to the Insurance Trustee the ~
name of all Owners, the name of the mortgagee who may hold a
mortgage encumbering each Condominium Parcel, and the respec- ~
tive percentages of any distribution which may be required ~
he m~~e t~ Qt~ners and his respective mortgagee! as
.
their respective interests may appear, or to certify the `
name of the party to~whom payments are to be made fot repair,
replacement or reconstruction of property.
In the event any insurance proceeds are paid to the Insur-
ance Trustee for any fire or casualty or other loss, the
holder of an Institutional First Mortgage encumbering the
Parcel shall have the right to elect to apply a proportion-
ate share of the insurance proceeds allocable to the Apart- ~
ment Uhit or Units encumbered by the lien of its mortgage to
the reduction of its mortgage when: -
. ~
1. The insurance proceeds paid as a result of a casualty,
or otherwise, are insufficient to defray and cover the cost ~
of repair, replacement and reconstruction and the Condominium
Association and.the Owners, in violation and default of
their express obligation to contribute additional funds as
hereafter provided, fail or refuse to contribute such addi-
tional funds to cover the cost of such restoration and
repair;
2. When such Institutional First Mortgage is in
default; provided, however, in such case, no portion of the
insurance proceeds allocable to the repair, replacement or ~
reconstruction of Common Elements may be applied for this
purpose. ~
I
~ The Condominium Association shall maintain a special escrow ~
~
~ account with the Insurance Trustee to which it shall make ~
~ monthly deposits in an amount equal to one-twelfth (1/12) of ~
~ the total annual premiums for insurance determined to be ne-
f cessary for the needs of the Condominium Association, the
~ Owners and their mortgagees. The purpose of said fund shall i
be to make available an amount sufficient to defray the ~
~ annual cost of-insurance one month prior to the due date of ~
~ the premium payments. In the event the Conclominium Associa- ~
tion or the Owners fail or refuse to maintain such escrow- `
~ account and do not, in fact, pay for such insurance coverage ~
~ as is necessary, any Institutional Mortgagee shall have the ~
~ right, at its option, to pay such premium payments or to ~
q order such insurance coverage and, to the extent of such }
' funds advanced, said Institutional Mortgagee shall be subro- ~
~ gated to the assessment rights of the Condominium Association ;
~ against all individual Condominium Parcels in the Condominium
; for the payment of such item of Common Expense. The Insur- t
~ ance Trustee shall have no obligation to advance funds for t
~ such insurance premiums. ?
~ ~
; In the event of the loss or damage to only Common Elements,
~ real or personal, which loss or damage is covered by fire
~ ,
~
~ -6-
~
~
~ " ~1?
$ F~.~
{ .
~ 70 ~
.T
~ ,
2
L ~ -r~;
, a:~~
~xe . - '
. . _:,KE,;.~