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(1) Proceeds Paid on Account of Dama e to Coumon
Elements. An und v e s are or eac t er, suc s are
e~ t~ie same as the undivided share in the commnon elements
appurtenant to his Unit. •
(2) Proceeds Paid on Account of Dama es to An
Units. Proceeds on account o amage to its s a e eld
o~ r the Owners of damaged Units in the proportion that the cost
of repairing the insured damage suffered by each Unit Owner
bears to the total cost of restoring all insured damage to
the Units. which cost shall be determined by the Assocation.
(3) Mort a ees. In the event a mortgagee endorsement
has been issued w t respect to a Unit, the share of the Unit
Owner shall be held in trust for the mortgagee and the Unit
Owner, as their interest 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 reconstru~ted 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 distributions
thereof made to the Unit Owner and mortgagee. pursuant to the
provisions of this Declaration.
c) Distribution of Proceeds: Proceeds of insurance
policies receive y t e ssociation s all be first utilized to
pay the cost of reconstructing or repairing any danage. Any
proceeds remaining after paying such cost shall be distributed
to the beneficial owners, provided that, if a mortgagee ,
endorsement has been issued with respect to a Unit, the shares
of the Unit Owner will be paid to the Unit Owner and mortgagee,
jointly.
d) Association as A ent. The Association is hereby
irrevocably appointe agent or each Unit Owner and for each owner
of a mortgage or other lien encumbering a Unit and for each
owner of any other interest in the Condominium Pronerty to adjust
all claims arising under insurance policies purchased by the
Association and to execute and deliver releases upon the payment
of claims.
~ e) Benefit of Mort a ees. Certain provisions in this
Article 14.02 are or t e ene t of mortgagees of Condominium
Parcels, and may be enforced by such mortgagee.
14.03 Reconstruction or Repair After Casualty
a) Reconstruction or Re air ?te uired. In the event the
common elements or t e Units are amage y any casualty.
whether such damage is insured against or not, the same shall be
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