HomeMy WebLinkAbout1301 11.3. Premiums. Premiums upon insurance policies
purchased by the Association will be .paid by the Association, as a
common expense, except that the amount of increase in the premium
occasioned by use for other than a residence, or misuse, occupancy
or abandonment of a unit or its appurtenances or of the common
elements by a unit owner shall be assessed against and paid by that
owner. Not less than ten (10) days prior to the date when a
premium is due, evidence of the payment shall be furnished by the
Association to each mortgagee listed in the roster of mortgages.
• 11.4. Insurance trustee; share of roceeds. All
insurance policies purchased y t e Assoc at on w be for the
benefit of the Association and•the apartment owners and their
mortgagees as their interests may appear, and will provide that all
proceeds covering property losses will be paid to such bank in
Florida with trust powers .as may be designated as insurance trustee
by the Board of Directors of the Association, which Trustee is
referred to in this instrument as the Insurance Trustee. The
Insurance Trustee will not be liable for payment of premiums nor
for the renewal or the sufficiency of policies nor for the failure
to collect any insurance proceeds. The duty of the Insurance
Trustee will be to receive such proceeds as are paid and hold the
proceeds in trust for the purposes elsewhere stated in this
instrument and for the benefit of the apartment owners and their
mortgagees in the following shares, but which shares need not be~
set forth on the records of the Insurance Trustee:
(a) Common Elements. Proceeds on account of dama e
to common elements: An undiv ded share for each apartment owner,
such share being the same as the undivided share in the common
elements appurtenant to his_ apartment.
(b) Apartments. Proceeds on account of damage to
apartments will be held in the following undivided shares:
1. When the building is to be restored - for
the owners of damaged apartments in proportion to the cost of
repairing the damage suffered by each apartment owner, which cost
will be determined by the Association.
2. When the building is not to be restored -
an undivided share .for each apartment owner, such share being the
same as the undivided share in the common elements appurtenant to
' his apartment.
(c) Mortgages. In the event a mortgagee endorse-
~ ment has been issued as to an apartment,~the share of the apartment
owner will be held in trust for the mortgagee and the apartment
owner as their interests. may appear; provided, however, that no
mortgagee will have any right to determine or participate in the
determination as to whether or not any damaged property will be
reconstructed or repaired, and no mortgagee will have any_ right to
apply or have applied to the reduction of a mortgage debt any
~ insurance proceeds except distribution of such proceeds made to the
apartment owner and mortgagee pursuant to the provisions of this
Declaration.
11.5. Distribution of Proceeds. Proceeds of insurance
policies received by the Insurance Trustee will be distributed to
3 or for the benefit of the. beneficial owners in the following
manner:
f
(a) Ex ense of the trust. All expenses of the
Insurance Trustee will be paid first, or provision made for such
~ payment. '
(b) Reconstruction or repair. If the damage for
which the proceeds are paid is to be repaired or reconstructed, the
remaining proceeds will be paid to defray the cost of such as else-,.
- 1 BOOKJJO PAGE.l.~~
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