restore the damaged areas to a condition compatible with the remainder of the Condominium Community. If additional insurance proceeds are available, the insurance proceeds will be distributed to all the Owners or Eligible Mortgagees in proportion to their respective ownership interests in the Common Elements. 7.9 Decision Not to Utilize Insurance. The Board may determine not to file an insurance claim where (a) the amount of the damage is less than $15,000 (increased hereafter to reflect increases in the consumer price index after the date hereof) or (b) the amount of the damage is such that the benefits of the net insurance recovery after payment of the deductible will be outweighed, in the reasonable judgment of the Board, by the effect of such claim on the ability of the Association to procure insurance at a reasonable cost. In such circumstances, the Board may determine (i) to pay the loss through assessments or reserves (ii) to seek recovery against any responsible person, including an Owner or occupant of a Unit, whose breach, negligence, or omission has resulted in the loss; (iii) to pursue any other remedy at law or in equity; or (iv) to use any combination of the foregoing. ARTICLE EIGHT: REPAIR AND RECONSTRUCTION UPON DAMAGE OR DESTRUCTION AND CONDEMNATION 8.1 Duty to Repair and Reconstruct. Any portion of the Common Elements that is covered by insurance carried by the Association that is damaged or destroyed must be repaired or reconstructed promptly by the Board of Directors, subject to the provisions of § 38-33.3-313 of the Act and this Declaration. The Board of Directors shall represent the Owners as their attorneyin-fact in all proceedings, negotiations, and agreements with the insurance companies for the settlement of any insurance claim for any part of the damaged Common Elements. If the insurance proceeds with respect to the damage or destruction are insufficient to repair and reconstruct the damage, the Board of Directors shall levy an Individual Assessment or Special Assessment in the aggregate amount of such insufficiency pursuant to Paragraphs 5.4(b) and 5.4(d) of this Declaration and shall proceed to make such repairs or reconstruction. The amount of each Owner’s Individual Assessment shall be based on an Owner’s Common Expense Assessment Liability determined in accordance with Paragraph 1.3 of this Declaration. 8.2 Plans. The Common Elements shall be repaired and restored in accordance with the original plans and specifications or other plans and specifications that have been approved by the Board of Directors. 8.3 Condemnation. The Board of Directors shall represent the Owners as their attorney-in-fact in any negotiations, settlements and/or agreements with condemning authorities for the condemnation of any part of the Common Elements or Limited Common Elements. An Owner may participate in, together with the Board of Directors, any negotiations, settlements and/or agreements with the condemning authorities for the condemnation of any part of an Owner’s Unit. All compensation, damage, or other proceeds therefrom (Condemnation Award) shall be payable to the Association to be held in trust for the use and benefit of the Owners and holders of their Security Interests as their interests may appear. No Owner of a Unit or any other party shall be entitled to priority over a First Mortgagee of a Unit with respect to any distribution of the Condemnation Award for that Unit. Subject to the previous sentence, the compensation, damage, DRAFT 2022.06.01
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