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4810-5342-0509, v. 2 51 10.1.3 Fidelity Bond. The Association shall maintain a commercial crime policy or a fidelity bond in an amount equal to the greater of: (a) the estimated maximum amount of funds, including reserves, expected to be regularly held by or on behalf of the Association or a managing agent at any given time during the term of the fidelity bond; and (b) three (3) months’ aggregate of the Regular Assessments on all Condominiums plus any reserve funds. If the Association maintains a bond, the bond shall name the Association as obligee and if the Association maintains insurance, the policy shall name the Association as the insured and shall insure against loss by reason of the acts of the officers, directors and employees of the Association, and any managing agent and its employees, whether or not such persons are compensated for their services. The bond shall contain waivers by the issuers of the bond of all defenses based upon the exclusion of persons serving without compensation from the definition of "employees", or similar terms or expressions. 10.1.4 Worker’s Compensation Insurance. The Association shall maintain worker’s compensation insurance to the extent necessary to comply with all Applicable Laws. 10.1.5 Directors and Officers Insurance. The Association shall maintain a policy insuring the Association’s officers and directors against liability for their acts or omissions while acting in their capacity as officers and directors of the Association. The limits of such insurance shall at all times meet or exceed the minimum requirements of California Civil Code Section 5800. 10.1.6 General Policy Requirements. All insurance policies the Association is required to obtain pursuant to this Article shall be placed and maintained with companies rated at least “A/VIII” by A.M. Best Company, Inc. and otherwise reasonably satisfactory to the Association. If an A.M. Best Company, Inc. rating is not available, a comparable rating service may be used. Such insurance policies may have reasonable deductible amounts comparable to those customarily maintained with respect to properties similar in construction, location and use, as may be determined by the Board. For projects approved by FNMA, the maximum deductible may not exceed the maximum deductible, if any, established by FNMA. For projects approved by FNMA and/or FHA, the insurance may not be prejudiced by any acts, negligence or omissions of Owners which is not in the control of such Owners collectively. The coverage amounts required for such insurance policies may be satisfied by any combination of primary and excess policies that collectively serve to satisfy the requirements of this Article. The name of the insured under such policy must be set forth therein substantially as follows: “Maple Lane Homeowners Association for use and benefit of the individual homeowners”. The Board is appointed attorney-in-fact by each Owner for the purpose of purchasing and maintaining property and liability insurance, including: the collection and appropriate disposition of the proceeds thereof; the negotiation of losses and execution of releases of liability; the execution of all documents; and the performance of all other acts necessary to accomplish such purpose. 10.1.7 Copies of Policies. Copies of all insurance policies of the Association shall be retained by the Association and available for inspection by Owners and First Mortgagees at reasonable times. All such insurance policies and fidelity bonds shall provide that they shall not be cancelable or substantially modified by the insurer without first giving at least thirty (30) days prior notice in writing to the Association, Owners and First Mortgagees (and in the case of any FNMA Mortgage, the servicer of such Mortgage), except that ten (10) days prior written notice shall be required if the cancellation is for non- payment of premiums. In addition to the foregoing, the Association shall provide to the Owners such information regarding the insurance of the Association as may be required by Applicable Laws or under the Bylaws. 10.1.8 Earthquake Insurance. ALL PARTIES ACKNOWLEDGE THAT EARTHQUAKE INSURANCE IS NOT INCLUDED IN THE COMMUNITY BUDGET AND IS NOT BEING OBTAINED BY DECLARANT FOR THE BENEFIT OF THE OWNERS OR THE ASSOCIATION. NEITHER DECLARANT NOR THE ASSOCIATION IS OBLIGATED TO MAINTAIN EARTHQUAKE INSURANCE ON THE COMMUNITY OR ANY PORTION THEREOF. Declarant or any Owner (and/or their respective lenders) may maintain earthquake insurance for their own benefit, but the premiums therefor may not be included by Declarant or the Association in the assessments. Notwithstanding the foregoing, at such time as the Board is no longer controlled by Declarant, the Association may, in its discretion, (but without any 304