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(b) Insurance Trustee. The proceeds of insurance
collected on account of a casualty, and the sums deposited
with the Insurance Trustee by the Association from
collections of assessments against unit owners on account of
such casualty, shall constitute a construction fund which
shall be disbursed in payment of the costs of reconstruction
and repair in the following manner and order:
(1) Association - Minor Damage. If the amount' of
the estimated costs of reconstruction and repair which
is the responsibility of the Association is less than
five thousand dollars ($5,000.00) then the construction
fund shall be disbursed in payment of such .costs upon
the order of the Association; provided however, that
upon request to the Insurance Trustee by a mortgagee
which is a beneficiary of an insurance policy the
proceeds of which are included in the construction fund,
such fund shall be disbursed in the manner hereafter
provided for the reconstruction and repair of major
damage.
(2) Association - Major Damage. If the amount of
the estimated costs of reconstruction and repair which
is the responsibility of the Association is more than
five thousand dollars ($5,000.00), then the
reconstruction fund shall be disbursed in payment of
such costs in the manner required by the Board of
Directors of the Association and upon approval of an
architect qualified to practice in Florida and employed
by tfie Association to supervise the work.
.(3) Unit Owner. The portion of insurance proceeds .
representing damage for which the responsibility of
reconstruction and repair lies with a unit owner shall
be paid by the Insurance Trustee to the unit owner, or
if there is a mortgagee endorsement as to such unit,
then to the unit owner and the mortgagee jointly, who
may use such proceeds as they may be advised.
(4 Surplus. It shall be presumed that the first
monies disbursed in payment of costs of reconstruction
and repair shall be from insurance proceeds. If there
is a balance in the construction fund after payment of
all costs of the reconstruction and repair for which the
fund is established, such balance shall be distributed
to the beneficial owners of the fund in the manner
hereinbefore stated; except, however, that the part of a-
distribution to a unit. owner which is not in excess of
assessments paid by such owner into the construction
fund shall not be made payable to any mortgagee.
(5) Certificate. Notwithstanding the provisions
herein, the Insurance Trustee shall not be required to
determine whether or not sums paid by unit owners upon
assessments shall be deposited by the Association with
the Insurance Trustee, nor to determine whether the
disbursements from t}~e construction fund are to be upon
the order of the Association or upon approval of an
architect or otherwise, nor whether a disbursement is to
be made from the construction fund, nor to
determine whether surplus funds to be distributed are
less than the assessments paid by owners. Instead, the
_ Insurance Trustee may rely upon a certificate of the
Association, made by its President and Secretary, as to
any or all of such matters and stating that the sums to
be paid are due and properly payable, and stating
the name of the payee and the amount to be paid,
provided, that when a mortyagee is required to be named
DC-26
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