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Dwellin Unit Owners; however, a mort a ee endorsement shall be
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issued. Such policies shall be held by the Association. Said
policies shall provide that all insurance proceeds payable on
acrnunt of loss or damage shall be payable to an insurance trustee
designated by the Association. The insurance trustee shall
receive such proceeds as are paid and hold the same for the
purposes elsewhere stated herein and for the benefit of the
Association and the Dwelling Unit Owners and their respective
mortgagees and the Owner of the .Common Area in the following
shares:
(a) Common Area: Proceeds on account of damage to
Common Area The Owner of the Common Area if not the
Association, and the Association.
(b) Units: Proceeds on account of Dwelling Units
shall be in the following undivided shares:
(i) Partial Destruction: When Dwelling Units
are to be repaired and restored, then for the Owners of -the
damaged Onits, in proportion to the cost of repairing the damage
suffered by each Dwelling Unit Owner.
(ii) ~'otal Destruction: Where total
destruction of a Dwelling Unit(s) occurs, or where "very
substantial" damage occurs and the improvements are not to be
restored, as provided hereinafter in this Article, then for the
~ Owners of all Dwelling Units so destroyed, each Dwelling Unit
Owner's share being equal.
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(c) Mortgagees: In the event a mortgagee
endorsement has been issued as to a Dwelling Unit, the share of
the Dwelling Unit Owner shall be held in trust for the mortgagee
and the Dwelling Unit Owner, as their interests may appear;
~ provided, however that no mortgagee shall have 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
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X331 PEE 985
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