HARRY HUGHES, Governor

1467

(2)  THE INSURER WAIVES ITS RIGHT TO SUBROGATION
UNDER THE POLICY AGAINST ANY UNIT OWNER OF THE CONDOMINIUM
OR MEMBERS OF HIS HOUSEHOLD;

(3)  AN ACT OR OMISSION BY ANY UNIT OWNER, UNLESS
ACTING WITHIN THE SCOPE OF HIS AUTHORITY ON BEHALF OF THE
COUNCIL OF UNIT OWNERS, DOES NOT VOID THE POLICY AND IS NOT
A CONDITION TO RECOVERY UNDER THE POLICY; AND

(4)  IF, AT THE TIME OF A LOSS UNDER THE POLICY,
THERE IS OTHER INSURANCE IN THE NAME OF A UNIT OWNER
COVERING THE SAME PROPERTY COVERED BY THE POLICY, THE POLICY
IS PRIMARY INSURANCE NOT CONTRIBUTING WITH THE OTHER
INSURANCE.

(D)  ANY LOSS COVERED BY THE PROPERTY POLICY UNDER
SUBSECTION (A)(1) SHALL BE ADJUSTED WITH THE COUNCIL OF UNIT
OWNERS, BUT THE INSURANCE PROCEEDS FOR THAT LOSS SHALL BE
PAYABLE TO ANY INSURANCE TRUSTEE DESIGNATED FOR THAT
PURPOSE, OR OTHERWISE TO THE COUNCIL OF UNIT OWNERS, AND NOT
TO ANY MORTGAGEE. THE INSURANCE TRUSTEE OR THE COUNCIL OF
UNIT OWNERS SHALL HOLD ANY INSURANCE PROCEEDS IN TRUST FOR
UNIT OWNERS AND LIEN HOLDERS AS THEIR INTERESTS MAY APPEAR.
SUBJECT TO THE PROVISIONS OF SUBSECTION (G), THE PROCEEDS
SHALL BE DISBURSED FIRST FOR THE REPAIR OR RESTORATION OF
THE DAMAGED COMMON ELEMENTS AND UNITS, AND UNIT OWNERS AND
LIEN HOLDERS ARE NOT ENTITLED TO RECEIVE PAYMENT OF ANY
PORTION OF THE PROCEEDS UNLESS THERE IS A SURPLUS OF
PROCEEDS AFTER THE COMMON ELEMENTS AND UNITS HAVE BEEN
COMPLETELY REPAIRED OR RESTORED, OR THE CONDOMINIUM IS
TERMINATED.

(E)  AN INSURANCE POLICY ISSUED TO THE COUNCIL OF UNIT
OWNERS DOES NOT PREVENT A UNIT OWNER FROM OBTAINING
INSURANCE FOR HIS OWN BENEFIT.

(F)  AN INSURER THAT HAS ISSUED AN INSURANCE POLICY
UNDER THIS SECTION SHALL ISSUE CERTIFICATES OR MEMORANDA OF
INSURANCE TO THE COUNCIL OF UNIT OWNERS AND, UPON REQUEST,
TO ANY UNIT OWNER, MORTGAGEE, OR BENEFICIARY UNDER A DEED OF
TRUST. THE INSURANCE MAY NOT BE CANCELED UNTIL 30 DAYS
AFTER THE NOTICE OF THE PROPOSED CANCELLATION HAS BEEN
MAILED TO THE COUNCIL OF UNIT OWNERS, EACH UNIT OWNER AND
EACH MORTGAGEE TO WHOM CERTIFICATES OF INSURANCE HAVE BEEN
ISSUED.

(G) (1) ANY PORTION OF THE CONDOMINIUM DAMAGED OR
DESTROYED SHALL BE REPAIRED OR REPLACED PROMPTLY BY THE
COUNCIL OF UNIT OWNERS UNLESS:

(I)  THE CONDOMINIUM IS TERMINATED;

(II)  REPAIR OR REPLACEMENT WOULD BE
ILLEGAL UNDER ANY STATE OR LOCAL HEALTH OR SAFETY STATUTE OR
ORDINANCE; OR