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<br /> <br />4810-5342-0509, v. 2 <br /> 60 <br /> <br />13.9.1 The approval of Mortgagees that represent at least fifty-one percent (51%) of <br />the votes of Condominiums that are subject to Mortgages and at least sixty-seven percent (67%) of the <br />total Voting Power if the election to terminate the legal status is a result of substantial destruction or a <br />substantial taking in condemnation of the property within the Community; or <br />13.9.2 The approval of at least sixty-seven percent (67%) of the total Voting Power <br />and Mortgagees that represent at least sixty-seven percent (67%) of the votes of Condominiums that are <br />subject to Mortgages, if Section 13.9.1 is not applicable. <br />For so long as is required by FNMA’s legal requirements for Community acceptance, all references to <br />“Mortgagees” in this Section shall be deemed to include all guarantors of such Mortgagees. <br />13.10 Condemnation or Destruction. In the event a portion of the Community is either <br />condemned or destroyed or damaged by a hazard that is insured against, restoration or repair shall be <br />performed substantially in accordance with the provisions of this Declaration and the original plans and <br />specifications for the Community unless Eligible Holders representing at least fifty-one percent (51%) of the <br />votes of Condominiums subject to Mortgages held by Eligible Holders approve the taking of other action by <br />the Association. <br />13.11 Self-Management. The vote or approval by written ballot of at least sixty-seven percent <br />(67%) of the total Voting Power and Eligible Holders that represent at least fifty-one percent (51%) of the <br />votes of Condominiums that are subject to Mortgages held by Eligible Holders shall be required to assume <br />self-management of the Community if professional management of the Community has been required by <br />an Eligible Holder at any time. <br />13.12 Mortgagee Protection. A breach of any of the conditions contained in this Declaration <br />shall not defeat nor render invalid the lien of any First Mortgage made in good faith and for value as to any <br />Condominium; provided, however, that the conditions contained in this Declaration shall be binding upon <br />and effective against any Owner of a Condominium if the Condominium is acquired by foreclosure, trustee’s <br />sale or otherwise. <br />13.13 Distribution of Insurance and Condemnation Proceeds. No Owner, or any other party, <br />shall have priority over any right of Institutional Mortgagees of Condominiums pursuant to their Mortgages <br />in case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or a taking <br />of Condominiums or Association Property. Any provision to the contrary in the Governing Documents is to <br />such extent void. All applicable fire and all physical loss or extended coverage insurance policies shall <br />contain loss payable clauses acceptable to the affected Institutional Mortgagees naming the Mortgagees, <br />as their interests may appear. <br />13.14 Voting Rights on Default. In case of default by any Owner in any payment due under the <br />terms of any Institutional Mortgage encumbering such Owner’s Condominium or the promissory note <br />secured by the Mortgage, the Mortgagee or its representative, on giving written notice to such defaulting <br />Owner or Owners, and placing of record a notice of default, is hereby granted a proxy and can exercise the <br />voting rights of such defaulting Owner attributable to such Condominium at any regular or special meeting <br />of the Members held during such time as such default may continue. <br />13.15 Foreclosure. If any Condominium is encumbered by a First Mortgage made in good faith <br />and for value, the foreclosure of any lien created by any provision set forth in this Declaration for <br />Assessments, or installments of Assessments, shall not affect or impair the lien of the First Mortgage. On <br />foreclosure of the Mortgage, the lien for Assessments, including Additional Charges, that have accrued up <br />to the time of foreclosure shall be subordinate to the lien of the Mortgage with the foreclosure-purchaser <br />taking title to the Condominium free of the lien for Assessments, including interest, costs (including <br />attorneys’ fees), and late charges levied by the Association with respect thereto or installments, that have <br />accrued up to the time of the foreclosure sale. On taking title to the Condominium, the foreclosure- <br />purchaser shall only be obligated to pay Assessments or other charges levied or assessed by the <br />Association after the foreclosure-purchaser acquired title to the Condominium. The subsequently accrued <br />313