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benefit of Association and the ~wners of all apartment units, and
their respective mortgagees, such insurance praceeds to be
disbursed and paid by the Insurance Trustee as hereinafter
provided. The association, as a common expense, shall pay a
reasonable fee to said Insurance Trustee for its services rendered
hereunde r, and shall pay such costs and expenses as said Insurance
Trustee may incur in the performance of any duties and obligations
i•mposed upon it hereunder. Said Insurance Trustee shall be liable
only for its willful misconduct, bad faith or gross negligence.
and then for anly such money which comes into the possession of
said Insurance Trustee. Whenever the Insurance Trustee may be
required to make distribution of insurance proceeds to owners of
apartment units and their mortgagees, as their respective
interests may appear~ the Zns~~rance Trustee may rely upon a
Certificate of the President and Secretary of Association,
executed under oath, and which Certificate will be provided co
said Insurance Trustee upon i-equest of said Insurance Trustee made
to Association, s~~ch Certificate to certify anto said Insurance
Trustee the name or names of the owners of each arartment unit,
the name or names of the mortgagee or mortgagees who may hold a
mortgage or mortgages encumbering each apartment unit, and the
respective percentages of any distribution which may be required
to be made to the owner or owners of any apartment unit or
apartment units, and his or their respective mortgaqee or
mortgagees, as their respective interests may appear. Where any
insurance proceeds are paid to the Insurance Trustee for any
casualty loss, the holder or holders of any mortgage or mortgages
encumbering an apartment unit shall not have the right to
determine or participate in the determination of repair or
replacement of any loss or damage, and shall not have the right to
elect to apply insurance proceeds to the reduction of any mortgage
or mortgages, unless such insurance proceeds represents a
distribution to the owner or owners of any apartment unit or
apartment units, and their respective mortgagees, after such
insurance proceeds have been first applied to repair, replace or
reconstruction of any loss or damage, or unless such casualty or
insurance proceeds are authorized to be distributed to the owner
or owners of any apartment unit or apartment units and their
--es~ective mortgagee or mortgaqees by reason of loss or damage to
personal property constitutinq a part of common elements and ~s to
whict~ determination is made not to repair, replace or restore such
personal property. ~
In the event of loss ot or damage only to common
elements, real or personal and/or limite~3 common elements which
loss or damage is covered by casualty insurance, the proceeds paid
to the Insurance Trustee to cover such loss or damage shall be
applied to the repair, replacment or reconstruction of such loss
or damag e. If the insurance proceeds are in exress of the cost of
the repair, replacement or reconstr~ction of such eommon elements
and/or limited common elements, then such excess insurance
proceeds shall be paid by the Insurance Trustee to the owners of
all of the apartment units and their respective mortgagees,
irrespective of whether there may be exclusive right to use an
area constituting a limited common element appurtenant to any of
such apartment units, the distribution to be separately made to
the owner of each apartment unit and his respective mortgagee or
:nortgagees as their interests may appear, in such proportion that
the share of such insurance proceeds paid to the owner of each
apartment unit and his said mortgagee or mortgaqees, if any, shall
bear the same ratio to the total excess insurance proceeds as does
the undivided interest in common elements appurtenant to each
apartment unit bear to the total undivided interest in common
elements appurtenant to all apartment units. If it appears that
the insurance proceeds covering the ~asualty loss or damage
payable to the Insurance Trustee are not sufficient to pay for
repairs, replacment or reconstruction of the loss or damage, or
that the insurance proceeds when collected will not be sufficient,
then Association shall deposit aith the Ins~rance Trustee a sum
which, together with th~ insurance proceeds received or to be
received, will enable said Insurance Trustee to completely pay for
t hc~ repai r, r~E~] acemc~nt ~r rc~con~ t ruct i ~n ~f any loss or damaqe as
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