Section 9.1 Insurance. The Board shall have authority in the exercise of its discretion to obtain and maintain at all times, as a common expense, a policy/policies and bonds of liability and property insurance covering the ownership, use and operation of all of the Common Area and Common Area improvements, including common personal property and supplies belonging to the Association; fidelity coverage for Association Board members (including Declarant), officers, committees, employees or agents. The Board has the authority to obtain and maintain other insurance(s) as the Board deems advisable, or as may be required by the Federal National Mortgage Association, Federal Home Loan Mortgage Association, Veterans Administration, or similar agencies or lending institutions.

 

Section 9.2 Losses and Condemnation. In the event of damage to or destruction of any part of the Common Area improvements, the Association shall repair or replace the same from the insurance proceeds available. If such insurance proceeds are insufficient to cover the costs of repair or replacement of the property damaged or destroyed, the Association may make a Reconstruction Special Assessment against all Lot Owners to cover the additional cost of repair or replacement not covered by the insurance proceeds, in addition to any other common assessments made against such Lot Owners.

 

In the event any part of the Common Areas is made the subject matter of any condemnation or eminent domain proceeding, or is otherwise sought to be acquired by any condemning authority, the Association shall give prompt notice of any such proceeding or proposed acquisition to the Owners and to the holders of all First Mortgages who have previously requested from the Association notification of any such proceeding or proposed acquisition. All compensation, damages, or other proceeds therefrom, shall be payable to the Association.

 

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