AgdaPkt 2012-03-19 - Laserfiche WebLink

Browse Search

6.1. B. - Page 90 (4) fidelity bonds or insurance covering officers, Directors, and employees that have access to any Association funds; (5) directors and officers liability insurance covering all past, present and future directors and officers of the Association, the amount of which shall at all times not be less than the minimum amounts required by California Civil Code §§ 1365.7 and 1365.9, as amended from time to time, including any successor statutes; (6) insurance against water damage, and liability for non -owned and hired automobiles; (7) water damage insurance to the extent typically available from commercial carriers, if available at reasonable rates in the opinion of the Board. (8) earthquake insurance, if and only to the extent that the Board determines that such earthquake insurance is reasonable and prudent based upon availability at commercially reasonable rates in the opinion of the Board; and, (9) such other insurance as the Board in its discretion considers necessary or advisable. B. Amount, Term and Coverage. The amount, term and coverage of any policy required hereunder (including the type of endorsements, the amount of the deductible, the named insureds, the loss payees, standard mortgage clauses, notices of changes or cancellations, and the insurance company rating) shall satisfy the minimum requirements imposed for this type of project by the Federal National Mortgage Association ( "FNMA "), the Federal Home Loan Mortgage Corporation ( "FHLMC "), and the Housing and Urban Development ( "HUD ") or any successor to either of those entities (except for earthquake insurance, the purchase of which shall be within the discretion of the Board, as provided in Section 8.1.A(8) above). If the FNMA, FHLMC or HUD requirements conflict, the more stringent requirement shall be met. If FNMA, FHLMC and HUD do not impose requirements on any policy required hereunder, the term, amount and coverage of such policy shall be no less than that which is customary for similar policies on similar projects in the area. The Board shall adopt a policy regarding payment of deductibles on any insurance coverage. Unless the Board determines otherwise, the Association shall pay deductibles required under any insurance claims from Association funds, unless insufficient funds are available to the Association from the Association's accounts or from funds borrowed by the Association in accordance with this Declaration, in which event the Association shall levy a Special Assessment, in accordance with Sections 4.3. B and 4.4 of this Declaration, with respect to the amount of any such deductible which exceeds funds available to the Association from Association funds or from borrowing. Owners responsible for causing damage are responsible for the amount of any deductible as provided in Section 5.1.A.(2). C. Representation for Claims. Each Owner appoints the Association or any insurance trustee designated by the Association to act on behalf of the Owners in connection with all insurance matters arising from any insurance policy maintained by the Association, including without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement. D. Waiver of Subrogation. Any insurance maintained by the Association shall contain "waiver of subrogation" as to the Association and its officers, Directors and Members, the Owners and Occupants of the Condominiums (including Declarant) and Mortgagees, and, if obtainable, a cross - liability or severability of interest endorsement insuring each insured against liability to each other insured. 46 03/06/12 T:IWPWIN601PROJECTS\333 MAIN STREEMEC -DRAFTING FORM[7][03 06 12].doc