If the Building, any improvement or Common Element or any part thereof is damaged or
destroyed by fire or casualty, the repair, restoration or ultimate disposition of any
insurance proceeds shall be in accordance with the following:
(a) If the insurance proceeds derived from such loss amount to $25,000.00 or less, then
the Board shall contract with any licensed contractor or contractors to rebuild or repair
such damaged or destroyed portions of the Property in conformance with the original plans
and specifications and in accordance with all applicable building codes, or if adherence
to such original plans and specifications is impracticable in the Board's opinion, then in
conformance with revised plans and specifications provided that all such repairs or
rebuilding shall be of a quality and kind substantially equivalent to the original
construction and in accordance with all applicable building codes. The Board shall accept
bids only in specific amounts and shall not enter into any cost-plus or other sliding
scale arrangement for compensation to the contractor.
(b) If the insurance proceeds derived from such loss exceed $25,000.00, all such
insurance proceeds shall be paid directly to an Insurance Trustee as may be designated by
the Board, as Trustee for all Institutional Lenders holding first mortgages on the
Property and for all Unit Owners, as their respective interests may then appear.
Disbursement of such funds shall be made only upon the signatures of a majority of the
members of the Board.
1. Upon notification of the receipt of insurance proceeds by the Insurance Trustee, the
Board shall enter into a contract for a specific dollar amount with a licensed contractor
or contractors for the repair or rebuilding of all of the damaged or destroyed portions of
the property. The repair or rebuilding for which the Board contracts shall be as near as
practicable to the original plans and specifications and shall be in accordance with all
applicable building codes.
2. The Board shall enter into said contract with a licensed contractor or contractors,
and the contract shall have provision for periodic disbursements of funds by the Trustee.
Disbursements to the contractor shall be made subject to the prior presentation of an
architect's certificate containing such provisions as may be appropriate in the
circumstances and deemed suitable by the Board.
3. The Board shall employ a licensed architect to supervise the repair and rebuilding
to insure that such work, services and supplies are of proper quality, and to insure that
construction is completed in a workmanlike manner according to all plans and
(c) If the damage is only to those parts of a Unit for which the responsibility for
maintenance and repair is that of the Owner, then that Owner shall be responsible for
reconstruction and repair, but the proceeds of any insurance that may have been obtained
by the Association shall be made available to the Owner for that purpose. Subject to the
provisions of the Condominium Declaration, in all other instances the responsibility of
reconstruction and repair after casualty shall be that of the Association.
(d) If the proceeds of insurance are not sufficient to defray the estimated costs of
reconstruction and repair, or if at any time during reconstruction and repair, the funds
for payment of the costs thereof are insufficient, assessments shall be made against all
Owners whose Units were damaged or destroyed in amounts which are sufficient to provide
funds for the payment of such costs. Anything to the contrary in the Condominium
Declaration or these By-laws notwithstanding, such assessments shall be in proportion to
the affected Unit Owners relative percentage interests in the Common Elements. The
foregoing provisions of this subparagraph are applicable to the repairs and reconstruction
to be undertaken by the Association and do not cover damages to those portions of the Unit
for which the responsibility of maintenance repair is that of the Unit Owner for which the
costs and expenses must be borne by each Owner as provided in Article VIII of the
Condominium Declaration; provided, however, that any portion of the insurance proceeds
representing damage for which the responsibility of reconstruction and repair lies with an
individual Unit Owner shall be paid to said Unit Owner, or if there is a mortgage
endorsement as to such Unit, then to the Unit Owner and mortgagee jointly.
(e) If the amount of available insurance proceeds should exceed the cost of any such
reconstruction or repair, the excess shall be retained by the Association and applied by
it to reduce the Common Expense.
(f) In the event the Association determines not to repair or restore the damaged
property in accordance with the N.H. RSA 356-B:46, any insurance proceeds payable to a
Unit Owner as a result of damage or destruction to his Unit and/or interest in the Common
Elements are hereby assigned and shall be paid to any appropriate Institutional Lender(s),
as their interests may appear, for application to the appropriate mortgage indebtedness.
The excess, if any, shall be paid to the appropriate Unit Owners.