HomeMy WebLinkAbout1240benefit of the unit 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
damage to com~non elements - undivided share for each
unit owner, such share being the same as the undivided
share in the common elements appurtenant to his unit.
b. Mort a ees. In the event a mortgagee
endorsement has een issued as to a unit, the share of
the unit owner shall~be held in trust for the mortgagee
and the 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, and no mortgagee shall have
any right to apply or have applied to the reduction of
a mortgage debt any insurance proceeds except distribu-
tions thereof made to a unit owner and mortgagee pursuant
to the provisions of this Declaration.
8.6 Distribution of Proceeds. Proceeds of insurance
policies received ~y the Insurance Trustee shall be distributed
to or for the benefit of the beneficial owners in the following
manner:
a. ~ense of the Trust. All expenses of
the Insurance Trustee s~a I-be f~st paid or provision
made therefor.
b. Reconstruction or Repair. If the
damage for which the proceeds are pai~ is to be repaired
or reconstructed, the.remaining proceeds shall be paid
to defray the cost thereof as elsewhere provided. Any
proceeds remaining after defraying such costs shall be
distributed to the beneficial owners, remittances to
unit owners and their~mortgagees being payable ~ointly
to them. This is a covenant for the benefit of any
mortgagee of a unit and may be enforced by such mortgagee.
8.7 Association as A~ent. The Association is
hereby irrevocab-ly appointed agent for each unit owner and
for each owner of a mortgage or other lien upon a unit and
for each onwer of any other interest in the condominium
property to adjust all claims arising under insurance policies
purchased by the Association, and to execute and deliver
releases upon the payment of claims.
8.8 Assessments. If the proceeds of insurance
are not sufficient to defray the estimated costs of reconstruc-
tion and repair by the Association, or if at any time during
reconstruction and repair, or upon completion of recon-
struction and repair, the funds for the payment of the costs
thereof are insufficient, assessments shall be made against
the unit owners who own the damaged property, and against
all unit owners in the case of damage to common elements. in
sufficient amounts to provide funds to pay th estimated
costs. Such assessments against unit owners for damage to
property shall be in proportion to the cost of reconstruction
and repair of their respective properties. Such assessments
on account of damage to common elements shall be in proportion
to the owner's share in the common elements.
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