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7.1.F. - Page 127 <br /> involved in a dispute over the apportionment of such expenses, then the dispute shall be settled by <br /> arbitration pursuant to Section 9.15.E. <br /> If the Association undertakes any work which Section 7.22 requires an Owner to <br /> undertake, or any work which the Association is required to undertake at the expense of the <br /> Owner, the Board shall assess the Condominium of the Owner for such work and shall so inform <br /> the Owner thereof in writing; provided, however, that the Assessment shall be reduced by the <br /> amount of any insurance proceeds paid to the Association as a result of damage to or destruction <br /> of the Unit or the Condominium involved. Such Assessment shall be a lien upon the Condominium <br /> of the Owner and may be foreclosed, as set forth in Section 4.9. <br /> G. Process If Repair or Reconstruction Not Undertaken: If the improvements <br /> are not required to be repaired or reconstructed in accordance with the foregoing, all available <br /> insurance proceeds shall be disbursed among the Owners of the damaged Units and their <br /> respective Mortgagees in proportion to the respective fair market values of their Condominiums as <br /> of the date immediately preceding the date of damage or destruction as determined by a qualified <br /> independent appraiser selected by the Board, after first applying the proceeds to the cost of <br /> mitigating hazardous conditions on the Project, making provision for the continuance of public <br /> liability insurance to protect the interests of the Owners until the Project can be sold, and <br /> complying with all other applicable requirements of governmental agencies. In the event of a <br /> failure to agree upon an appraiser, the appraiser shall be appointed by the then President of the <br /> Bar Association of the County. <br /> If the failure to repair or reconstruct results in a material alteration of the use of the <br /> Project from its use immediately preceding the damage or destruction as determined by the Board <br /> (a material alteration shall be conclusively presumed if repair or reconstruction costs exceed <br /> twenty-five percent (25%) of the current replacement cost of all Project improvements), the Project <br /> shall be sold in its entirety under such terms and conditions as the Board deems appropriate. If <br /> any Owner or First Lender disputes the Board's determination as to a material alteration, the <br /> dispute shall be submitted to arbitration pursuant to Section 9.15.E, and the decision of the <br /> arbitrator shall be conclusive and binding on all Owners and their Mortgages. <br /> If, as a result of the destruction or partial destruction of the Project, and a decision is <br /> made not to repair or reconstruct the Project, the Project is sold, the sales proceeds shall be <br /> distributed to all Owners and their respective Mortgages in proportion to their respective fair market <br /> values of their Condominiums as of the date immediately preceding the date of damage or <br /> destruction as determined by the independent appraisal procedure described above. For the <br /> purpose of effectuating a sale under this Section 8.2.G, each Owner grants to the Association an <br /> irrevocable power of attorney to sell the entire Project for the benefit of the Owners, to terminate <br /> the Declaration and to dissolve the Association. In the event the Association fails to take the <br /> necessary steps to sell the entire Project as required under this Article within sixty (60) days <br /> following the date of a determination by the Board or arbitrator of a material alteration, or if within <br /> one hundred twenty (120) days following the date of damage or destruction the Board has failed <br /> to make a determination as to a material alteration, any Owner may file a partition action as to the <br /> entire Project under Civil Code § 4610, or any successor statute, and the court shall order partition <br /> by sale of the entire Project and distribution of the sale proceeds as provided in this Declaration. <br /> Notwithstanding anything in this Declaration to the contrary, any Owner or group of <br /> Owners shall have a right of first refusal to match the terms and conditions of any offer made to <br /> the Association in the event of a sale of the Project under this Section 8.2.G, provided this right is <br /> exercised within thirty (30) days of receipt by the Owners of a notice from the Association <br /> containing the terms and conditions of any offer it has received. Such notice shall be given by the <br /> Board to all Owners, in writing, within thirty (30) days of receipt by the Association of such offer. <br /> If the Owner or group of Owners subsequently default on their offer to purchase, they shall be <br /> liable to the other Owners and their respective Mortgagees for any damages resulting from the <br /> default. If more than one (1) Owner or group elects to exercise this right, the Board shall accept <br /> the offer that in its determination is the best offer. <br /> 8.3. Condemnation: The Association shall represent the Owners in any condemnation <br /> proceedings or in negotiations, settlements and agreements with the condemning authority for <br /> acquisition of the Common Area(s), or part of the Common Area(s). In the event of a taking or <br /> acquisition of part or all of the Common Area(s) by a condemning authority, the award or proceeds <br /> 64 <br /> [DRAFT][05.03.14] C:\Program Files\Neevia.Com\Document Converter\temp\4056.doc <br />