HomeMy WebLinkAbout1419 menu. The Insurance Trustee must rely upon the written statement of the
Association as to whether an Apartment or a Common Element or both have
suffered damage insured under any policies held by the Insurance Trustee.
2. In the event that a loss of Five Thousand (55,000.00) Dollars
or less, as determined by detailed estimates or bids for repair and reconstruc-
tion obtained by the Board , occurs to any Common Element or to any Apart-
ments and Common Elements which are contiguous, the Insurance Trustee
shall pay the proceeds received as a result of such loss to the Association .
Upon receipt of such proceeds, the Association will promptly cause the neces-
sary repairs to be made to the Common Elements and to any such damaged
contiguous Apartments. In such event, should the insurance proceeds be
sufficient for the repair of the damaged Common Elements but insufficient for
the repair of all of the damage to the Apartments contiguous thereto,. the
proceeds shall be applied first to completely repair the Common Elements, and
the balance of the funds shall be apportioned by the Association to repair the
damage to the Apartments , which apportionment shall be made to each Apart-
ment in accordance with the proportion of damage sustained by each of such
Apartments, as estimated by the insurance company or companies whose
policies cover such damages. Any deficiency between such proceeds appor-
tioned to a damaged Apartment and the cost of the repair of such damaged
Apartment shall be made up by a special Assessment against the Apartment
Owner of such damaged Apartment.
3. In the event the Insurance Trustee receives proceeds in excess
of Five Thousand (55,000.00) Dollars as a result of damages to the Common
Elements or Apartments and Common Elements which are contiguous, then the
Insurance Trustee shall hold in trust all insurance proceeds received with
respect to such damages together with any and all other monies paid to Insur-
ance Trustee pursuant ~ to Subparagraph 3(c) of this Paragraph D and shall
distribute such funds in the following manner
(a) The Board shall obtain detailed estimates or bids for the
cost of rebuilding and reconstruction of such damaged property for the pur-
pose of determining whether such insurance proceeds are sufficient to pay for
the same .
(b) In the event the insurance proceeds are sufficient to
~ rebuild and reconstruct all of such damaged improvements, or if the insurance
i proceeds together with the funds described in Subparagraph 3(c) of this
~ Paragraph D are sufficient for such purpose, then such damaged improvements
shall be completely repaired and restored . The Board shall negotiate for the
F repair and restoration of such damaged Condominium Property and the Associ-
ation shall negotiate and enter into a construction contract with a contractor
~ to do the work on a fixed price basis or on any other reasonable terms accept-
able to the Board, which contractor shall post a performance and payment
~ bond with respect to such work. The Insurance Trustee shall disburse the
insurance proceeds and other applicable funds held in trust in accordance
with provisions for progress payments to be contained in such construction
contract; provided, however, prior to any payment of such funds the payees
of such funds shall deliver to the Insurance Trustee any paid bills, waivers
of liens under any lien laws, and executed affidavits required by law, the
Association or any respective Approved Mortgagees .
(c) In the event the insurance proceeds are insufficient to
repair and replace all of the damaged improvements within the Common Ele-
menu and Apartments contiguous to such damaged Common Elements, the
~ Board shall hold a special meeting to determine a special Assessment against
all of the Apartment Owners to obtain any necessary funds to repair and to
3
A
22
BOOK 3U4 1417
RUDEN, BARN ET T, MCCLOSKY 6 SCHUSTER, ATTORNEYS FT LAW, 2S SUUTH ANDREWS AVENUE. BOAT iAU OE ROALE, FLORIDA