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DSCC-57520\2494968.2 21 September 17, 2021 interests, provided that the Association shall maintain the minimum insurance requirements set forth in Civil Code section 6840 and any successor statute thereto. If the Association elects to reduce the coverage materially from the coverage required in this Article 7, the Association shall make all reasonable efforts to notify the Members of the reduction in coverage and the reasons therefor at least thirty (30) days prior to the effective date of the reduction. Notwithstanding the foregoing, the Association shall not reduce coverage or deviate from coverage required by any Mortgagee whose insurance requirements have been provided to the Association. The Association is authorized to negotiate and agree on the value and extent of any loss under any policy carried by the Association, including, but not limited to, the right and authority to compromise and settle any claim or enforce any claim by legal action or otherwise and to execute releases in favor of any insurer. Each Owner, by acceptance of a deed to a Condominium, irrevocably appoints the Association or the Insurance Trustee described in Section 7.7 as that Owner’s attorney-in-fact for purposes of procuring, negotiating, accepting, compromising, releasing, settling, distributing and taking other related actions in connection with any insurance policy maintained by the Association and any losses or claims related thereto and agrees to be bound by the actions so taken as if the Owner had personally taken the action. 7.6 Periodic Insurance Review. The Association periodically (and not less than once every three (3) years) shall review the Association’s insurance policies and make such adjustments to the policies’ terms and conditions as the Association considers to be in the best interests of the Association. If applicable, the review shall include an appraisal by a qualified appraiser of the current replacement costs of all covered property under the Association’s property insurance policy unless the Association is satisfied that the current dollar limit of the property insurance policy, coupled with the amount of actual reserves on hand, is equal to or greater than the current replacement costs. 7.7 Insurance Trustee. All property insurance proceeds payable to the Association under any property insurance policy procured by the Association as described in Section 7.3, subject to the rights of Mortgagees under Article 9, may be paid to a trustee as designated by the Association to be held and expended for the benefit of the Owners and Mortgagees as their respective interests shall appear. The trustee shall be a commercial bank or other financial institution with trust powers in the county in which the Development is located that agrees in writing to accept such trust. If repair or reconstruction is authorized, the Association will have the duty to contract for such work as provided for in this Declaration. 7.8 Other Insurance. In addition to the policies described in Sections 7.2 and 7.3, the Association may obtain and maintain such other insurance as the Association in its discretion considers necessary or advisable. ARTICLE 8 Damage, Destruction or Condemnation 8.1 Restoration Defined. As used in this Article 8, the term “restore” shall mean repairing, rebuilding or reconstructing Improvements damaged or destroyed as a result of a fire or other casualty to substantially the same condition and appearance in which they existed prior to fire or other casualty damage. 8.2 Insured Casualty. If any Improvement is damaged or destroyed from a risk covered by the insurance required to be maintained by the Association and the insurance proceeds are sufficient to cover the loss, then the Association, to the extent permitted under existing Applicable Laws and except as otherwise authorized under this Article 8, shall restore the Improvement subject to such changes as may be Approved by the Owners or required by Applicable Laws. The Association shall proceed with the filing and adjustment of all claims arising under the existing insurance policies. The insurance proceeds shall be paid to and held by the Association or an insurance trustee selected under the provisions of Section 7.7.