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<br /> <br />4810-5342-0509, v. 2 <br /> 54 <br /> <br />Improvement, the Board shall then add to the insurance proceeds all reserve account funds designated for <br />the repair or replacement of the damaged Improvement. If the total funds then available are sufficient to <br />restore the damaged Improvement, the Improvement shall be restored. If the aggregate amount of <br />insurance proceeds and such reserve account funds are insufficient to restore the damaged Improvements, <br />and if such claims are not waived, the Association shall determine whether to levy a Compliance <br />Assessment against any Owner or Owners who caused such damage in accordance with Section 10.1.2(g) <br />(Waiver of Claims and Subrogation). If the aggregate amount of insurance proceeds and such reserve <br />account funds are insufficient to pay the total costs of restoration, a Special Assessment against all Owners <br />shall be levied by the Board up to the maximum amount permitted without the approval of the Members in <br />accordance with the limitations set forth in this Declaration and by law. If the total funds then available are <br />sufficient to restore the damaged Improvement, the Improvement shall be restored. <br />11.2.2 Insufficient Proceeds. If the total funds available to the Association are still <br />insufficient to restore the damaged Improvement, then the Board first shall attempt to impose an additional <br />Special Assessment pursuant to subsection (a) below, and second to use a plan of alternative <br />reconstruction pursuant to subsection (b) below. If the Members do not approve such actions, then the <br />entire building of which the damaged Improvement is a part shall be sold pursuant to subsection (c) below. <br />(a) Additional Special Assessment. If the total funds available to restore <br />the damaged Improvement as provided in Section 11.2 (Restoration Proceeds for Association Property) <br />are insufficient, then a meeting of the Members shall be called for the purpose of approving a Special <br />Assessment to make up all or a part of the deficiency (“Additional Special Assessment”). If the amount <br />of the Additional Special Assessment approved by the Members, and the amounts available pursuant to <br />Section 11.2 (Restoration Proceeds for Association Property), are insufficient to restore the damaged <br />Improvement, or if no Additional Special Assessment is approved, the Association shall consider a plan of <br />alternative reconstruction in accordance with subsection (b). <br />(b) Alternative Reconstruction. The Board shall consider and propose <br />plans to reconstruct the damaged Improvement making use of whatever funds are available to it pursuant <br />to Section 11.2 (Restoration Proceeds for Association Property) and subsection (a) above (“Alternative <br />Reconstruction”). All proposals shall be presented to the Owners. If two-thirds of the Voting Power of the <br />Owners whose Units were materially damaged, as determined by the Association (“Affected Owners”) and <br />a majority of the Voting Power, including the Affected Owners, agree to any plan of Alternative <br />Reconstruction, then the Board shall contract for the reconstruction of the damaged Improvement in <br />accordance with the plan of Alternative Reconstruction making use of whatever funds are then available to <br />it. If no plan of Alternative Reconstruction is agreed to, then the provisions of subsection (c) shall apply. <br />(c) Sale of Building. If the damaged Improvement is part of a <br />Condominium Building (“Damaged Building”), the damage renders one or more of the Condominiums <br />uninhabitable, and the Improvements will not be restored in accordance with the provisions of subsections <br />(a) and (b) above, the Board, as the attorney-in-fact for each Owner of a Condominium in the Damaged <br />Building, shall be empowered to sell the Damaged Building, including all Condominiums therein, in their <br />then present condition, on terms to be determined by the Board, provided that the Board receives adequate <br />assurances that the purchaser shall, and has the financial capability to: (i) restore the Damaged Building <br />(either by renovation or removal and rebuilding); (ii) remove the Damaged Building (including foundations), <br />grade the area, and appropriately landscape or otherwise improve the area; or (iii) perform any combination <br />of the foregoing. Any work to be performed by the purchaser with respect to any of the foregoing shall be <br />subject to the provisions of this Declaration. In lieu of selling the Damaged Building to a third Person, the <br />Association may purchase the Condominium Building on satisfaction of the following conditions: (a) <br />Members holding at least sixty-seven percent (67%) of the total Voting Power (including the votes allocated <br />to the Condominiums within the Damaged Building) approve of the purchase; (b) the purchase price is the <br />fair market value of the Damaged Building as of the date of sale as determined by an appraisal made by a <br />qualified and independent real estate appraiser; (c) any special assessment needed to fund the purchase <br />price shall be levied against all Condominiums, including the Condominiums within the Damaged Building; <br />and (d) the Association has an adequate source of funds to repair, renovate or rebuild all or a portion of the <br />Damaged Building and to remove and appropriately landscape the remaining area. For this purpose, no <br />307