HomeMy WebLinkAbout0504 (2) When the building is not to be restored - an
undivided share for each unit in the building, such
share being the same as the undivided share in the
common elements appurtenant to the unit.
(d) Mortgagees. In the event a mortgagee endorsement
has been issued regarding a unit, the share of the unit shall
be held in trust for the mortgagee and the unit owner as
their interests may appear; provided, however, that no
mortg agee shall have any right to determine or participate in
the determination as to whether or not any damaged property
shall be reconstructed or repaired, and no mortgagee shall
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 unit owner and mortgagee pursuant
to the provisions of this Declaration.
21.4 Distribution of Proceeds. Proceeds of insurance
policies received by the Insurance Trustee shall be distributed to
or for the benefit of the beneficial owners in the following
manner:
(a) Expense of the Trust. All expenses of the
Insurance Trustee shall. 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 shall be paid to defray tt~e cost of such
as hereinafter provided. Any proceeds remaining after
defraying such costs shall be distributed to the beneficial
owners, 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 such
mortgagee.
(c) Failure to Reconstruct or Repair. If it is
determined in the manner hereinafter provided that the damage
for which proceeds are paid shall not be reconstructed or
repaired, the remaining proceeds shall be distributed to the
beneficial owners, 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 such mortgagee. There shall be no distribution
of remaining proceeds until all debris, remains and residue
~ have been cleared and removed, and the condominium property
has been properly landscaped. In the event of loss or damage
to personal or real property belonging to the Association,
and should the Board of Directors of the Association
determine not to replace such personal or real property as
may be lost or damaged, the proceeds shall be disbursed to
the beneficial owners as common surplus.
(d) Certificate. In making distribution to unit owners
and their mortgagees, the Insurance Trustee may rely upon a
certificate of the .Board of Directors of the Association, as
to the names of the unit owners and their respective shares
of the distribution; provided, however, that such
certificates shall not be binding insofar as Institutional
mortgagees of units are concerned. The Insurance Trustee
shall obtain appropriate certificates from all such
~ Mortgagees prior to any disbursement to owners or
mortgagees.
DC-23
BG`,t!( 43 ~~GE
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