HomeMy WebLinkAbout1264 (a) The Board of Directors of the Association
shall promptly obtain reliable and detailed estimates of the cost
of repairing and restoration.
(b) If the damage or loss is limited to the
Common Elements, with no, or minimum damage or loss to any indi-
vidual Units; and if such damage or loss to the Common Elements
is less than $3,000.00, the insurance proceeds shall be endorsed
by the Insurance Trustee over to the Association, and the Associa-
tion shall promptly contract for the repair and restoration
thereof .
(c) If the damage or loss involves one or more
individual Units encumbered by -Institutional Mortgages, as well
as the Common Elements, or if the damage is limited to the Common
Elements alone, but is in excess of $3,000.00, the insurance
proceeds shall be disbursed by the Insurance Trustee for the
repair and restoration of the property upon the written direction
and approval of the Association as to--the payee and the amount to
be paid from said proceeds. All payees shall deliver paid bills,
waivers and releases of mechanics' liens to the Insurance Trustee,
shall execute any Affidavit required by law,~by the Association,
or by the Insurance Trustee, and shall deliver same to the Insur-
ance Trustee.
_ (d) .Subject to the foregoing, the Board of Directors
shall have the right and obligation to negotiate and contract for
the repair and restoration of the premises.
(e) If .the net proceeds of the insurance are
insufficient to pay the estimated cost of restoration and repair
(or the actual cost thereof if the work has actually been done),
the Association shall promptly upon determination of the deficiency,
levy a special assessment against each Unit Owner in proportion
to the Unit Owner's' share in the Common Elements for the portion
of the deficiency attributable to the cost. of restoration of the
Common Elements, and against each Unit Owner for that portion of
-the deficiency attributable to his individual Unit; provided,
however, that if the Board of Directors finds that it cannot
determine with reasonable certainty the portion of the deficiency
E attributable to specific individual damaged Unit, then the Board
E of Directors shall levy the assessment for the total deficiency
against all of the Unit Owners in proportion to the Unit Owners'
share in the Common Elements as if all of said damage had occurred
to the Common Elements. The special assessment funds shall be
~ delivered by the Association to the Insurance Trustee and added
by said Trustee to the proceeds available for the repair and
restoration of the property.
(f) In the event the insurance proceeds are
sufficient to pay the cost of restoration and repair, or in the
event the insurance proceeds are insufficient but additional
funds are raised by special assessment within ninety (90) days
after the casualty so that sufficient funds are on hand to fully
pay for such restoration and repair, then no mortgagee shall have
the right to require the application of insurance proceeds to the
payment of its loan unless (i) the provisions of the mortgage to
the Institutional Mortgagee so require and/or (ii) the Board of
Directors consents to such an application of proceeds, and, in
either event only upon request therefor by said Institutional
Mortgagee. To the extent that any insurance proceeds are required
to be paid over to any mortgagee, the Owner of the Unit subject
to the mortgage held by said mortgagee shall be obligated to
replace the funds so paid over, and said Unit Owner shall-be
subject. to special assessment for such sum and his Unit to a lien
for said assessment. ~ -
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