Instrument #2022025031 #25 Book:8196 Page:4796
compensation insurance and insurance or fidelity bond for all persons who control or disburse funds of the Association.
Section 5.02. Additional Insurance. In addition to any other insurance required by Article V, the Board may obtain,as a Common Expense:(A)directors' and officers' liability coverage,ifreasonably available; and(B)flood insurance, if required. As used in this paragraph, the term "persons who control or disburse funds ofthe Association" includes, but is not limited to, persons authorized to sign checks on behalf of the Association, and the President and Secretary, and Treasurer of the Association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the Association or its management agent at any one time, as determined by the Board's best business judgment, with such amounts, regardless, never being less than three(3) months' Assessments, plus all reserves on hand. If available, any such insurance policy or fidelity bonds shall contain a waiver of all defenses based upon the exclusion of persons serving without compensation and shall require at least thirty(30) days' prior written notice to the Association of any cancellation, substantial modification, or non-renewal. If annually approved by a majority of the voting interests present at a properly called meeting ofthe Association, the Association may waive the requirement of obtaining an insurance policy or fidelity bond for all persons who control or disburse funds ofthe Association. Section 5.03. Individual Insurance. By virtue oftaking title to a Lot, each Owner(other than Declarant) covenants and agrees with all other Owners, and with the Association, that each Owner shall carry, at a minimum full replacement cost dwelling protection with building structure replacement cost method extended limits. Each Owner further covenants and agrees that in the event of a partial loss or damage resulting in less than total destruction of structures comprising its Lot, the Owner shall proceed promptly to demolish, as required, and repair or to reconstruct the damaged structure in a manner consistent with the original construction or such other plans and specifications as are approved in accordance with this Declaration. Said Owner shall pay any costs ofrepair or reconstruction which is not covered by insurance proceeds. In the event that the structure is totally destroyed,said Owner may decide not to rebuild or to reconstruct, in which case the Owner shall clear the Lot of all debris and return it to substantially the natural state in which it existed prior to the beginning of construction and thereafter the Owner shall continue to maintain the Lot in a neat and attractive condition consistent with the terms hereof, any Rules and Regulations, and all applicable Law. Assessments shall still apply to and be levied against any Lot cleared and thereafter maintained pursuant to the provisions ofthis section. The Owner of any such cleared Lot shall still, at all times, continue to be responsible for payment offull Assessments, regardless of the fact that the Lot and Owner may not benefit from maintenance and other services otherwise provided by the Association to occupied or improved Lots.
Section 5.04. Insurance Premiums. Premiums for all insurance obtained by the Association pursuantto this Article V shall be a Common Expense.
ARTICLE VI
COVENANT FOR MAINTENANCE ASSESSMENTS
Section 6.01. Lien and Personal Obligation Nonpayment.
(a) Declarant, for each Lot owned by it on the Property, and each Owner other than Declarant, by acceptance offee-simple title to any Lot, whether or not it shall be so expressed in any deed or other conveyance of title to such Lot, covenants and agrees to pay to the Association the Assessments, which Assessments shall be fixed, established, assessed, and enforced as herein provided and as permitted by the Association Act. Assessments shall be a charge and a continuing lien upon the Lot against which such Assessment is made, and upon any Dwelling located on said Lot,from and after
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