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(7) Insurance Com anies P»thorized to do business in
the State of Florida shall a f rmatively be presumed to be good
and responsible companies and the Board of Directors of the Asso-
ciation shall not be responsible for the quality or financial
responsibility of the insurance companies provided same are
licensed to do business~in the State of Florida. '
C. Distribution of Proceeds. Proceeds of insurance policies
received by t e Insurance Trustee shall be distributed to or for
the benefit of those entitled thereto pursuant to this Article
XIII and expended or disbursed after first paying or making pro-
vision for the payment of expenses of the Insurance Trustee in
the following manner:
(1) Reconstruction or Re air: If the damage for which
the proceeds were pai is to a repaired and restored, the remaining
proceeds shall be paid to defray the cost thereof as elsewhere
provided. Any proceeds remaining after defraying such costs
shall be distributed to those entitled thereto pursuant to this .
Article XIII, all remittances to Unit Owners and their mortgagees
being payable jointly to them. This is a covenant for the benefit
of any mortgagee of a Unit and may be enforced by it. The remit-
tance shall be made solely to an Institutional Mortgagee when
requested by such Institutional Mortgagee if the mortgage held by
it provides that it has the right to require application of the
insurance proceeds to the payment or reduction of its mortgage
debt.
(2) Failure to Reconstruct or Repair If it is deter-
mined in the manner elsewhere herein provided that the damage for
which the proceeds are paid shall not be repaired and restored,
the proceeds shall be disbursed to the Unit Owners and their
mortgagees, remittances to Unit Owners and their mortgagees being
payable jointly to them. This is a covenant for the benefit of
any mortgagee of a Unit and may be enforced by him.he remittance
shall be made solely to an Institutional Mortgagee n requested
by such Institutional Mortgagee if the mortgage held by it provides
= ` t!:e right to require application of the insurance
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li proceeds to the payment of its mortgage debt. In the event of
loss or damage to personal rroperty belonging to the Association,
the proceeds shall be disbursed to the Unit Owners and any mortgagee
~ having an interest in them (as their interests may appear) as
surplus in the manner elsewhere stated if the Board of Directors
of the Association determine not to replace such personal property
as may be lost or damaged. _
i
! (3) Certificate: In making distribution to the Unit
Owners and their mortgagees, the Insurance Trustee may rely upon
a certificate of the Association as to the names of the Unit
~ Owners and their respective shares of the distribution approved
in writing by an attorney authorized to practice .law in the State
of Florida, or a title insurance company or abstract company
authorized to do business in the State of Florida. Upon request
of the Insurance Trustee, the Association forthwith shall deliver
~ such certificates.
D. Reconstruction or Repair~After Casualty.
(1) Loss Less Than'"Very Substantial". Where a loss
or damage occurs within a Unit or Units, or to the Common Elements,
or to any Unit or Units and the Common Elements, but said` loss is
less than "very substantial" (as hereinafter defined), it shall
be obligatory upon the Association and the Unit Owners to repair,
restore and rebuild the damage caused by said loss. Where such
loss or damage is less than "very substantial":
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