HomeMy WebLinkAbout1261 ARTICLE XIII
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INSURANCE
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The Condominium Association shall use its best efforts to
obtain and maintain adequate insurance to protect the Association
and the Common Elements. The insurance carried by the Condominium
Association shall be governed by the following provisions:
A. Loss Pa able Provisions - Insurance Trustee. All policies
purchased y t e Associat on s a a or t o ens t of the ~
Association, all Unit Owners and mortgagees as their interests
may appear. Such policies shall be deposited with the Insurance t
Trustee (as hereinafter defined), who.must first acknowledge that
the policies and any proceeds thereof will be held in accordance ~
with the terms hereof. The Insurance Trustee shall be the named
insured and it shall not be necessary~to name the Association or
the Unit Owners; however, a mortgagee endorsement shall be issued.
Said policy shall provide that all insurance proceeds payable on
account of loss or damage shall be payable to the Insurance
Trustee, which may be any bank in Florida with trust. powers as
may be approved by the 3oard of Directors of the Association and
by the Construction Lender,_which Trustee is herein referred to
as the "Insurance Trustee." The insurance Trustee shall not be
liable for the payment of premiums nor for the renewal or the
sufficiency of policies, nor for the failure to collect any.- ~
insurance proceeds, nor for the form or contents of the policies.
The sole duty of the Insurance Trustee shall be to receive such
proceeds as are paid and hold the same in trust for the purposes
elsewhere stated herein, and for the benefit of the Association, ~
the Unit Owners and their respective mortgagees, in the following ~
shares, but such shares need not be set forth upon the records of
the Insurance Trustee.
(1) Loss Payable Provision as to Common Elements:.
Proceeds on account of damage to Common Elements - an
undivided share for each Unit Owner, such share being
the same as the undivided share in the Common Elements
appurtenant to his Unit. Limited Common Elements shall
be treated as Common Elements for this purpose.
(2) Loss Payable Provision as to Condominium ~
Units: Proceeds on account of Condominium Units shall ~
e~in the following undivided shares: -
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(a) -Partial Destruction - When Units are to
be repaired and restored - for the Owners of
the damaged Units in proportion to the cost ~
of repairing the damage suffered by each Unit
Owner. ~ ~
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(b) Total Destruction of improvements to
.Condominium Property or where "Very Sub-
stantial" damage occurs and the improvements
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to Condominium Property are not to be restored
as provided hereinafter in this Article - for
the Owners of all Condominium Units, each
Owner's share being in proportion to the
Owner's share of Common Elements appurtenant
-to the Owner's Condominium Unit.
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(3) Loss Pa able Provision as to Mort a ees: In
the event mortgagee endorsement has been issue as to a
Unit, the share of the Unit Owner shall be held in
trust for the mortgagee and the Unit Owner as their
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