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If <br /> Association's insurance is not in ~ompliance with California <br />law~. each Owner maybe individually liable__for the entire amount of <br /> judgment ag~$nst the Association. If Ge insurance complies with <br />a <br />the levels specified by California l~w~ each owner, may be <br />individually li~le only for their proportionate ~hare of <br />assessments levied to pay for the amour~t of any judgment which <br />exceeds the limits of 'the Association's nsurance. <br /> <br />(e) Workers' Compensation Insurance shal at all times be carried <br />as required by law with respect to the enp!oyees, if an}l, of the <br />Association. <br /> <br />(f) The Association shall purchase and ma.ntain a fidelity bond or <br />insurance covering loss or theft of funds naming the Manager and <br />other persons as may be designated by Dec.arant as principals and <br />the Owners as obligees in an amount equal, to at least the sum of <br />three months' assessments on all lots within the project. Separate <br />bank accounts should be maintained for t:he working and~reserve <br />accounts, or any management company must Kaintain separate.records <br />and bank accounts for each owners' association that uses its <br />services and the management company does n~t have the autho~.ity to <br />draw checks on, or to transfer funds from, the owners' association, <br />or two Board members must sign any check~ written on the reserve <br />account. <br /> <br />(g) Should the Board, despite its reasonakle efforts to do so, be <br />unable to obtain insurance coverage meeting all of the <br />specifications set forth ~hove, it shall observe such <br />specifications as closely as possible, and ~here forms of coverage <br />or insuring agreement specified above are unavailable, the Board <br />shall substitute available fo~ms of ~overage and insuring <br />agreements which in its judgment are the nearest equivalent to <br />those specified. <br /> <br />(h) Proceeds of all insurance policies o~ned by the Association <br />shall be received by the Association, helc in a separate account <br />and distributed to the Association and the Owners and their <br />mortgagees subject to the provisions of thi~ Declaration as their <br />interest may appear; provided, however whenever repair or <br />reconstruction is required the proceeds of any insurance received <br />by the Association as a result of any loss ~all be applied to such <br />repair or reconstruction. Upon the vote or written assent of a <br />majority of the voting power of the Association residing in members <br />other than Declarant, the Board shall lev. a special assessment <br />against all Owners to make up for any deficiency in making <br />necessary repairs or reconstruction. <br /> <br /> 13 <br /> <br /> <br />