DECLARATION
VIII. MANNER OF DETERMINING APPROPRIATE ACTION FOLLOWING DAMAGE
TO ANY PORTION OF THE CONDOMINIUM BY FIRE OR OTHER CASUALTY AS REQUIRED
BY RSA 356-B:l6 (i)
1. Common Area and Limited Common Area: If the
casualty loss is to a common area or limited common area it shall be reconstructed or
repaired at the expense of the Association in accordance with Article XI of the By-laws.
2. Unit: If the casualty loss is to a Unit it
shall be reconstructed or repaired at the expense of the unit owner. Such reconstruction
or repair shall be commenced within 60 days of the loss provided, however, that the owner
shall have the option not to reconstruct but if he does not do so he will, within 60 days
of the loss, convey his interest in the Unit and the Common and Limited Common Areas to
the Association at a mutually agreeable price or under arbitration as provided in Article
XVII of the By-laws.
3. Any reconstruction or repair shall be to a
unit identical to the previous design and dimensions of the original unit.
4. Estimate of Costs: Immediately after
determination to rebuild or repair damaged property for which the Association has the
responsibility of reconstruction and repair, the Association shall obtain reliable and
detailed estimates of the cost to rebuild or repair.
5. Assessments: If the proceeds of insurance
are not sufficient to defray the estimated cost of reconstruction and repair, or upon
completion of reconstruction and repair, the funds for the payment of the cost thereof are
insufficient, assessments shall be made against the Unit Owner(s) who own the damaged
Unit(s), and against all Unit Owners in the case of damage to the Common Area insufficient
amount to provide funds for the payment of such cost.
Such assessments against Unit Owners for
damage to Units, shall be in proportion to the cost of reconstruction and repair of their
respective Units. Such assessments on account of damage to common areas shall be in
proportion to the Owners share of the Common Areas.
6. Construction Funds: The funds for payment
of costs of reconstruction and repair after casualty, which shall consist of the proceeds
of insurance held by the Association or by the Insurance Trustee appointed by the
Association and funds collected by the Association from assessments against Unit Owners
shall be disbursed in payment of such costs in the following manner:
A. If the insurance proceeds and the total
assessments made by the Association in order to provide funds for payment of costs of
reconstruction and repair which is the responsibility of the Association is more than
Twenty-five Thousand ($25,000.00) Dollars, then the sum shall be paid by the Association
to an Insurance Trustee in Accordance with Article XI of the Bylaws. In all other cases
the Association shall hold the sums paid upon such assessments and disburse the same in
payment of costs of reconstruction and repair in accordance with Article XI of the
By-laws.
