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the case may be. The moneys to t~e deposited by Association with
the Insurance Trustce, in said latter evc•nt may be paid by
Association out of its Reserve for Re~lacement Fund, and if the
amount in such Reserve for Replacement Fund is not sufficient,
then Association shall levy and collect an assessment against the
owners of all apartment units and said apartment units in an
amount which shall provide the fu~ds required to pay for said
re~air, replacement or reconstruction without regard to the
'existence of any exclusive riqht to use any area constituting
limited common elements, which may be an appurtenance to said
apartment units.
In the event of the l~ss or damage to rnmmon elements,
limited common elements, and any apartment unit or apartment
units, which loss or damage is covered by the casualty insurance,
the proceeds paid to the Insurance Trustee to cover such loss or
damage shall be first applied to the repair, replacement or
reconstruction, as the case may be, of common elements, real or
personal, and limited common elements, and then any remaining
insurance proceeds shall be applied ta the repair, replacement or
reconstruction of any apartment unit or apartment units which may
have sustained any loss or damage so covered. If the insurance
proceeds are in excess of the cost of the repair, ~replacement or
reconstruction of the common elements and limited common elements
and the apartment unit or apartment units, sustaining any loss or
damage, then such excess insurance proceeds shall be paid and
distributed by the Insurance Trustee to the owners of all
apartment units and to their mortgagee or mortgagees, as their
respective interests may appear, such distribution to be made in -
the manner and in the proportions as are provided hereinbefore.
If it appears that the insurance proceeds covering the casualty
loss or damage payable to the Insurance Trustee are not sufficient
to pay for the repair, replacement or reconstruction of the loss
or damage, or that the insurance proceeds when collected will not
be so sufficient, then the eoard of Directors of Association
shall, based upon reliable and detailed estimates obtained by it
from competent and qualified parties determine and allocate the
c~st of repair, replacement or reconstruction between the common
elements and limited common elements and the apartment unit or
apartment units sustaininq any loss or damage. If the proceeds of-
~aid casualty insurance are sufficient to pay for the re~air,
replacement or reconstruction of any loss or damage to common
elements and limited common elements, but should the same not be
sufficient to repair, replace or reconstruct any loss of or damage
to any apartment unit or apartment units, then Association shall
levy and collect an assessment from the owner or owners or the
apartment unit or apartment units sustaining any loss or~damage,
and the assessment so collected from the said owner or owners
shall be deposited with said Insurance Trustee so that the sum on
deposit with said Insurance~Trustee shall be sufficient to
completely pay for the repair, replacement or reconstruction of
all common elements, limited common elements and apartment unit or
apartment Units. In said latter event, the assessment to be
levied and collected from the owner or owners of each apartment
unit or units sustaining loss or damaqe shall be apportioned
between such owner of an apartment unit and his apartment unit
shall bear the same proportion to the total assessment levied
against all of said owners of apartment units sustaining loss or
damage as does the cost of repair, replacement or reconstruction
of each owner's apartment unit bear to the cost applicable to all
of said apartment units sustaininq loss or damage. If the
casualty insurance proceeds payable to the Insurance Trustee in
the event of the loss or damaqe to common elements, limited common
elements and apartment unit or apartment units, is not an amount
which will pay for the complete repair, replacement or
reconstruction of the common elements and limited common elements,
it being recognized that such insurance proceeds are to be first
applied to payment for repair, replacement or reconstruction of
said common elements and limited common elements before being ~
applied to the repair, replacement or reconstruction of an
apartment unit or apartment units, then the cost to repair,
replace or reconstruct saic~ commo~ elements and limited common
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8"~~K ~~ ' PA~E ~6~1