HomeMy WebLinkAbout0106 of the Associarion is more than $2Q.000.00, then the sums paid upon such assess-
ments 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 costs of reconstruciion and repair .
2. Insurance Trustee. The proceeds of insurance collecied on account of a casualty,
and the sums deposited with the Insurance Trnstee by the Association from col-
lections of assessments against dwelling unit owners on account of such casualty,
shall constitute a construction fund which shall be disbursed in payment of the
costs of repair and reconstrucrion in the following manner and order:
a. Association - lesser damage. 1f the amount of the estimated costs of re-
~ construction and repair that is the responsibility of the Associarion is less
` than ~20.000.00. then the constrnction fund shall be disbursed iri payment
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~ of such costs upon the order of the Association; provided, however, that
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: upon request to the Insurance Trustee by a mortgagee that is a beneficiary
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~ or an insurance policy the proceeds of which are included in the construc-
~ tion fund, such fund shall be disbursed in the manner provided for the re-
! construction and repair of major damage.
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b. Association - major damage . If the amount of the estimated costs of re-
construction and repair that is the responsibility of the Association is more
than $10.000.00, then the construction fund that is held by the Insurance
~ Trustee shall be disbursed in payment of such costs in the manner required
by the Board of Directors of the Association and upon approval of an archi-
tect qualified to practice in Florida and employed by the Association to
supervise the work .
~ c. Dwelling unit owner . The portion of insurance proceeds representing
' damage for which the respons;bility of reconstrucrion and repair lies with
- a dwelling unit owner shall be paid by the Insurance Trustee to the dwelling
= unit owner, or if there is a mortgagee endorsement as to the dwelling unit,
' then to the dwelling unit owner and the mortgagee jointly, and as their in-
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terests may appear, who may use such proceeds as they may be advised.
d. Surplus . It shall be presumed that the first moneys disbursed in payment
of costs of reconstruction and repair shall .be from insurance proceeds. If
there is a balance in a construction fund after payment 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 else-
where stated; except, however, that the part of a distriburion to a benefi-
cial owner that is not in excess of assessments paid by such owner into
the construction fund shall not be made payable to any mortgagee .
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