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trustee is referred to in. this instrument as the Insurance Trustee . The Insurance Trustee
shall not be liable for payment of premiums nor for the renewal or the sufficiency of policies
nor for the failure to collect any insurance proceeds . The duty of the Insurance Trustee shall
be t~ receive such proceeds as are paid and to hold the proceeds in trust for the purposes
elsewhere stated in this instrument and for the benefit of the dwelling unit owners and their
mortgagees in the following shares, but which shares need not be set forth on the records
oi the Insurance Trustee. The Insurance Trust Agreement shall be entered into and any
trustee's fees shall be paid at such time as any damage shall occur as contemplated in this
Article. It shall be the duty of the Board of Directors to enter into such Agreement and pay
all fees from Association funds without delay. Provided, however, such Agreement shall
not be necessary unless the damage is in excess of $10.000.00.
1. Common elements . Proceeds on account of damage to common elements: an
undivided share for each dwelling unit owner, such share being the same
i as the undivided share in the common elements appurtenant to his dwelling
unit . ~
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~ 2. Dwelling units. Proceeds on account of damage to dwelling units shall be
; held in the following undivided shares:
c a. When the building is to be restored - for the owners of damaged dwelling
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x units in proportion to the cost of repairing the damage suffered by each
F dv~~elling unit owner, which cost shall be determined by the Association;
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' b. When the building is not to be restored - an undivided share for each
r dwelling unit owner , such share being the same as the undivided share
f~ ' in the common elements appurtenant to his dwelling unit.
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~ 3. Mortgagee . In the event a mortgagee endorsement has been issued as to a dwelling
~ unit, the share of the dwelling unit owner shall be held for the mortgagee and the
~ dwelling unit owner as their interests may appear; provided. however. that no
mortgagee shall have any right to determine or participate in the determination
as to whether or not any damaged property shall be reconstructed or repaired,
- and no mortgagee shall have any right to apply or have applied to the reduction
of a mortgage debt any insurance proceeds except distributions of such proceeds
- made to the dwelling unit owner and mortgagee pursuant to the provisions of
this Declaration .
` E. Distribution of proceeds . Proceeds of insurance policies received by the Insurance
Trustee shall be distributed to or for the benefit of the beneficial owners in the following
= manner:
: 1. Expense of the trust. All expenses of the Insurance Trustee shall be paid first
or provisions made for such payment .
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