Rec Doc 2016-099081 CONF The Grove Declaration of Restrictions (CC&Rs)

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shall make all reasonable efforts to notify the Members of the reduction in coverage and the reasons therefor at least thirty (30) days prior to the effective date of the reduction. The Board is authorized to negotiate and agree on the value and extent of any loss under any policy carried by the Association, including, but not limited to, the right and authority to compromise and settle any claim or enforce any claim by legal action or otherwise and to execute releases in favor of any insurer. Each Owner, by acceptance of a deed to a Lot, irrevocably appoints the Association or the Insurance Trustee, described in Section 7.7, as that Owner's attorney-in-fact for purposes of procuring, negotiating, accepting, compromising, releasing, settling, distributing and taking other related actions in connection with any insurance policy maintained by the Association and any losses orclaims related thereto and agrees to be bound by the actions so taken as if the Owner had personally taken the action. 7.6 Periodic Insurance Review. The Board periodically (and not less than once every three (3) years) shall review the Association's insurance policies and make such adjustments to the policies' terms and conditions as the Board considers to be in the best interests of the Association. If applicable, the review shall include an appraisal by a qualified appraiser of the current replacement costs of all covered property under the Association's property insurance policy unless the Board is satisfied that the current dollar limit of the property insurance policy, coupled with the amount of actual reserves on hand, is equal to or greater than the current replacement costs. 7.7 Insurance Trustee. All property insurance proceeds payable to the Association under any property insurance policy procured by the Association as described in Section 7.3, subject to the rights of Mortgagees under Article 9, may be paid to a trustee as designated by the Board to be held and expended for the benefit of the Owners and Mortgagees as their respective interests shall appear. The trustee shall be a commercial bank or other financial institution with trust powers in the county in which the Development is located that agrees in writing to accept such trust. If repair or reconstruction is authorized, the Association will have the duty to contract for such work as provided for in this Declaration. 7.8 Other Insurance. In addition to the policies described in Section 7.2, the Association may obtain and maintain the following insurance: (i) Workers Compensation Insurance to the extent required by Applicable Laws; (ii) fidelity bonds or insurance covering officers, directors and employees who have access to any Association funds; (iii) flood insurance on Common Area Improvements if the Development is located in an area designated by an appropriate governmental agency as a special flood hazard area and the Improvements are of the nature on which hazard insurance is normally maintained; and (iv) such other insurance as the Board in its discretion considers necessary or advisable. ARTICLE 8 Damage, Destruction or Condemnation 8.1 Lot Repair or Reconstruction. If an Improvement on any Lot is damaged or destroyed by fire or other casualty, the Owner of such Lot shall repair or reconstruct the Improvement to substantially the same condition and appearance as existed immediately before the damage or destruction, subject to such modifications as required by law. 8.2 Common Area Repair or Reconstruction. If any Improvement within the Common Area is damaged or destroyed by fire or other casualty, the Association shall repair or reconstruct the Improvement EDNB\53295\996553.3 29 August 16, 2016