DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
PAGE 44

ARTICLE IX (cont.)

9.6.  Trustee for Policies (cont.).
for a different procedure for the filing of claims, all claims made under such policy must be sent to the insurance carrier or agent, as applicable, by certified mail and be clearly identified as a claim. The Association shall maintain a record of all claims made. All insurance proceeds under any such policies provided for in Section 9.1 must be paid to the Board as trustees. The Board shall receive and receipt for the proceeds and deal therewith as provided herein. The Association shall use insurance proceeds to repair or replace the property for which the insurance was carried, or otherwise dispose of such proceeds as provided in Article X hereof. The Board has the authority to negotiate loss settlements with the appropriate insurance carriers, with participation, to the extent they desire, of first Mortgagees who have filed written requests within ten (10) days of receipt of notice of any damage or destruction as provided in Section 10.4 of this Declaration. Any two (2) officers of the Association may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signatures are binding on all the named insureds. A representative chosen by the Board may be named as an insured, including a trustee with whom the Association may enter into an insurance trust agreement or any successor to such trustee, who shall have exclusive authority to negotiate losses under any policy providing property or liability insurance and to perform such other functions necessary to accomplish this purpose.

9.7.  Actions as Trustee.
Except as otherwise specifically provided in this Declaration, the Board has the exclusive right to bind the Association and the Owners in respect to all matters affecting insurance carried by the Association, the settlement of a loss claim, and the surrender, cancellation, and modification of all such insurance, in a manner satisfactory to Beneficiaries of seventy-five percent (75%) of the first Mortgages held by first Mortgagees who have filed requests under Section 9.4. Duplicate originals or certificates of all policies of fire and casualty insurance maintained by the Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Association to all Owners and Mortgagees who have requested the same in writing.

9.8.  Annual Insurance Review.
The Board shall review the insurance carried by or on behalf of the Association at least annually to determine the amount of the casualty and fire insurance referred to in Section 9.1 above. If economically feasible, the Board shall obtain a current appraisal of the full replacement value of the Improvements on the Property except for foundations and footings, without deduction for depreciation, from a qualified independent insurance appraiser, prior to each such annual review.

9.9.  Required Waiver.
All policies of physical damage insurance the Association maintains must provide, if reasonably possible, for waiver of:

(a)  subrogation of claims against the Owners and tenants of the Owners;

(b)  any defense based upon coinsurance;

««  Page 43 Contents Page 45 »»