HomeMy WebLinkAbout1125-- (b) I~surance Trustee. Ti~e proceeds oi insurance
collected on account of a casualty, arid the sums deposited
with the Insurance Trustee by the Association from
collections of assessments against unit owners on account of
such casualt}•, 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 ttie araount of
tlie estinated 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 insurai:ce policy the
proceeds c~f 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 Danage. If the amount of
the~estimate@ 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 b}~ the Board of
Directors of the Association and upon approval of an
architect qualified to practice in Plorida and employed
by the Association to supervise tt~e work.
(3) Unit Owner. The portion of insurance proceeds
regresenLing damage for which the resgonsibility 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 cests ef 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. t~otwiths~anding the provisions
herein, the Insurance Trustee shall not be required to
deter~rine whether or not sums paid by unit owners upon
assessments shall be deposited by the 1lssociation with
the Insurance Trustee, nor to dFtermine whether the
disbursements from the construction fund are to be upon
th~ orc3er of the Association or upo~ approval of an
architect or otherwise; nor whether a disbursement is to
be made from the construction fund, r.or to
deterr;~ine whether surplus funds Fo be distribu:.ed are
less than the assessments paid b}~ owners. Instead, the
Insurance Trustee may rely upon a~-ertificate of the
Association, made by its President anc3 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 narr.e of the payee and tt~e amount to be paid,
provided, that when a mortgagee i~ required to be named
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ao~K 346 PaGE 11z~
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