AgdaPkt 2014-06-23 Closed and Joint SA

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7.1.L. - Page 93 10.3 Inadequate Insurance Proceeds or Uninsured Loss. If the insurance proceeds are insufficient to restore the damaged Improvement or the loss is uninsured,the Board shall add to any available insurance proceeds all reserve account funds designated for the repair or replacement of the damaged Improvement. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. If the aggregate amount of insurance proceeds and such reserve account funds are insufficient to pay the total costs of restoration, a special assessment shall be levied by the Board up to the maximum amount permitted without the approval of the Members in accordance with the limitations set forth in this Declaration and by law. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. Any special assessment levied to cover a shortfall in available repair proceeds shall be prorated among the Condominiums as described in Section 6.9 and without regard to the extent of damage or destruction to the individual Condominiums. If the total funds available to the Association are still insufficient to restore the damaged Improvement, then the Board first shall attempt to impose an additional special assessment pursuant to Section 10.4 below and, second, use a plan of alternative reconstruction pursuant to Section 10.5 below. Any special assessment levied to cover a shortfall in available repair proceeds shall be allocated among the Condominiums without regard to the extent of damage or destruction to the individual Condominiums. If the Members do not approve such actions, then Section 10.6 shall apply. 10.4 Additional Special Assessment. If the total funds available to restore the damaged Improvement as provided in Section 10.3 are insufficient,then a meeting of the Members shall be called for the purpose of approving a special assessment to make up all or a part of the deficiency("Additional Special Assessment"). The Additional Special Assessment shall be allocated among the Condominiums in accordance with Section 10.9 and without regard to the extent of the damage or destruction to the individual Condominiums. If the amount of the Additional Special Assessment approved by the Members and the amounts available pursuant to Section 10.3 above are insufficient to restore the damaged Improvement or if no Additional Special Assessment is approved, the Association shall consider a plan of alternative reconstruction in accordance with Section 9.5. 10.5 Alternative Reconstruction. The Board shall consider and propose plans to reconstruct the damaged Improvement making use of whatever funds are available to it pursuant to Section 10.3 and Section 10.4 above("Alternative Reconstruction"). All proposals shall be presented to the Owners. If two- thirds of the voting power of the Owners,agree to any plan of Alternative Reconstruction,then the Board shall contract for the reconstruction of the damaged Improvement in accordance with the plan of Alternative Reconstruction making use of whatever funds are then available to it. If no plan of Alternative Reconstruction is agreed to, then the provisions of Section 10.6 shall apply. 10.6 Sale of Development. If the damage renders one or more of the Units uninhabitable,and the Improvements will not be restored in accordance with the provisions of Sections 10.3,10.4 and/or 10.5,the Board, as the attorney-in-fact for each Owner, shall be empowered to sell the Development including the Condominiums. The proceeds from the sale, together with the available insurance proceeds for the damaged Condominium(s)received and any reserve funds,after deducting therefrom the Association's sale expenses, including commissions, title and recording fees, legal costs, and costs to wind up and dissolve the Association, shall be distributed among the Owners and their respective Mortgagees in proportion to the respective fair market values of these Condominiums immediately prior to the date of the event causing the damage as determined by an independent appraisal made by a qualified real estate appraiser selected by the Board. 10.7 Restoration of Partition Rights. Notwithstanding anything herein to the contrary, if the damage has rendered any Condominium uninhabitable and (i)within one year of the date of the occurrence of the damage, the Association has not elected to repair the damage under the provisions of Sections 10.2, 10.3, 10.4 or 10.5 or if so has not commenced and diligently pursued the repair work or(ii)the Association has not commenced and diligently pursued the sale of the Development as authorized under Section 10.6, CLSS\51643\927586.5 39 June 16,2014