Recission of Enabling Declaration Establishing A Plan For Condominum Ownership 2-27-1981

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adjur.ted, if necessary, to provide such coverage and protection as the Association may deem prudent. Worker's compensa- tion insurance shall at all times be carried to the extent required to comply with any applicable law. Officers and directors liability insurance shall be carried by the Associa- tion to cover persons serving in such capacities. It is the responsibility of each owner to insure his personal property ( if he desires ) and the improvements and betterments added to his unit since the time of the original sale, together with additional living expense coverage and public liability insurance for the interior of his unit. c.) In addition to the master liability policy which the Association shall carry, each unit owner may carry public liability insurance covering damage to property or injury to person of others within the project resulting from negligence of the owner or his agents, in amount not less than $100,000 for each occurrence. Insurance premiums for the master policy shall he a common expense to be included in the monthly assessments levied by the Association and the portion of such payment necessary for the insurance premiums shall he held in a separate account of the Association and shall be used solely for the F.+ payment of the master insurance policy premiums as such premiums Or aG become due Ct Each buyer of a unit shall pay the portion of the premium(s) attrihutanle to his unit (prorated to the date 1` of close of escrow) for the policy or policies purchased by Declarant for the Association. If any of the project improvements are damaged by tire or other casualty, insurance proceeds payable to the Association shall be used to rebuild or repair such damage substantially in accordance with the original plans and speci- fications therefor. Any excess insurance proceeds shall he deposited to the general funds of the Association. In the event the proceeds of the Association's insurance policy are insufficient to rebuild or repair the common area, and the units, then the Association may use funds from its account or if necessary from levying a special assessment on all urit owners to restore or rebuild said common area, and said units. In the event of substantial damage to or destruc- tion of any condominium or any part of the common area, the institutional lender, with respect to such condominium, will be entitled to timely written notice of such damage or destruction and no provision of the Declaration or the Bylaws will entitle the owner of the condominium or other party to priorit", over such institutional lender with respect to the distribution to such condominium of any insurance proceeds. The repair, reconstruction or disposition of the property and insurance proceeds shall be as provided by an agreement approved by the owners representing at least three-fourths ( 3/4 ) of the voting power of each class of members of the Association as such voting interests are established in this Declaration (subject to the rights of institutional lenders), provided that the project shall be rebuilt unless at least three-fourths ( 3/4 ) of • -31- 1