If the Building, any improvement or Common Element or any part thereof is damaged or destroyed by fire or casualty, the repair, restoration or ultimate disposition of any insurance proceeds shall be in accordance with the following:

(a) If the insurance proceeds derived from such loss amount to $25,000.00 or less, then the Board shall contract with any licensed contractor or contractors to rebuild or repair such damaged or destroyed portions of the Property in conformance with the original plans and specifications and in accordance with all applicable building codes, or if adherence to such original plans and specifications is impracticable in the Board's opinion, then in conformance with revised plans and specifications provided that all such repairs or rebuilding shall be of a quality and kind substantially equivalent to the original construction and in accordance with all applicable building codes. The Board shall accept bids only in specific amounts and shall not enter into any cost-plus or other sliding scale arrangement for compensation to the contractor.

(b) If the insurance proceeds derived from such loss exceed $25,000.00, all such insurance proceeds shall be paid directly to an Insurance Trustee as may be designated by the Board, as Trustee for all Institutional Lenders holding first mortgages on the Property and for all Unit Owners, as their respective interests may then appear. Disbursement of such funds shall be made only upon the signatures of a majority of the members of the Board.

1. Upon notification of the receipt of insurance proceeds by the Insurance Trustee, the Board shall enter into a contract for a specific dollar amount with a licensed contractor or contractors for the repair or rebuilding of all of the damaged or destroyed portions of the property. The repair or rebuilding for which the Board contracts shall be as near as practicable to the original plans and specifications and shall be in accordance with all applicable building codes.

2. The Board shall enter into said contract with a licensed contractor or contractors, and the contract shall have provision for periodic disbursements of funds by the Trustee. Disbursements to the contractor shall be made subject to the prior presentation of an architect's certificate containing such provisions as may be appropriate in the circumstances and deemed suitable by the Board.

3. The Board shall employ a licensed architect to supervise the repair and rebuilding to insure that such work, services and supplies are of proper quality, and to insure that construction is completed in a workmanlike manner according to all plans and specifications.

(c) If the damage is only to those parts of a Unit for which the responsibility for maintenance and repair is that of the Owner, then that Owner shall be responsible for reconstruction and repair, but the proceeds of any insurance that may have been obtained by the Association shall be made available to the Owner for that purpose. Subject to the provisions of the Condominium Declaration, in all other instances the responsibility of reconstruction and repair after casualty shall be that of the Association.

(d) If the proceeds of insurance are not sufficient to defray the estimated costs of reconstruction and repair, or if at any time during reconstruction and repair, the funds for payment of the costs thereof are insufficient, assessments shall be made against all Owners whose Units were damaged or destroyed in amounts which are sufficient to provide funds for the payment of such costs. Anything to the contrary in the Condominium Declaration or these By-laws notwithstanding, such assessments shall be in proportion to the affected Unit Owners relative percentage interests in the Common Elements. The foregoing provisions of this subparagraph are applicable to the repairs and reconstruction to be undertaken by the Association and do not cover damages to those portions of the Unit for which the responsibility of maintenance repair is that of the Unit Owner for which the costs and expenses must be borne by each Owner as provided in Article VIII of the Condominium Declaration; provided, however, that any portion of the insurance proceeds representing damage for which the responsibility of reconstruction and repair lies with an individual Unit Owner shall be paid to said Unit Owner, or if there is a mortgage endorsement as to such Unit, then to the Unit Owner and mortgagee jointly.

(e) If the amount of available insurance proceeds should exceed the cost of any such reconstruction or repair, the excess shall be retained by the Association and applied by it to reduce the Common Expense.