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provided hereinafter in this Article, for the owners of all
Dwelling Units so destroyed, each Dwelling Unit Owner's share
.is equal. -
c. Mortgagees: In the event a mortgagee en-
dorsement has been issued as to a Dwelling Unit, the share of
the `Owel~ling Unit Owner shall be held-in trust for -the mortgagee.
and the Or+elling Unit Or~ner, as their interests may appear;
- provided, however, -that no' mortgagee shall fiave any right to
determine or participate in the determination as to whether _ _ _
or not any damaged property shall be reconstructed or repaired.
3. Distribution of Proceeds. Proceeds of insurance
policies. received by the Association shall be distributed to
or for-the benefit of t~he_ benefi-cial owners and expended or
.
disbursed in the following manner:-- ~ ~ _
a. Reconstruction or Repair: It shall be pre-
sumed that the first moneys from the insurance proceeds shall be
in payment of costs for repair and restoration. If the damage
for which the proceeds were paid is repaired and restored and
any proceeds remain after defraying such costs, they-shall be
distributed to the beneficial owners; all remittances to Dwelling
Unit Owners and their mortgagees being payable jointly to them.
n fit of an mort a ee of a Dwell-ing _
This ~s a covenant for the be e y g g
Unit and may be enforced by said mortgagee,- Said remittances
shall be made solely to an Institutional-Mortgagee-when requested
by such Institutional .Mortgagee whose mortgage provides that it
has the right to require application_.of the insurance proceeds
to the payment or reduction of its mortgage debt.
b. Failure to Reconstruct or Repair: If it is
determined in the manner else-where provided that the damage-for
which the proceeds are paid shall not be repaired and restored, -
the proceeds shall be disbursed to the beneficial owners, re-~ _
mittance to Dwelling Unit Owners and their mortgagees being -
payable jointly to them. .This is a covenant for-the benefit of
_ any mortgagee of a Dwelling-Unit and may be enforced by such.
mortgagee. Said remittances shall be made solely to a~ Institu-
- _ tionl Mortgagee when requested by such Institutional-Mortgagee
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