Declaration 09 - Insurance trustee

IX INSURANCE TRUSTEE AND PROCEEDS OF INSURANCE

(1) Insurance Trustee

The Corporation shall enter into an agreement with an Insurance Trustee which shall be a Trust Company registered under The Loan and Trust Corporations Act, or shall be a Chartered Bank, which agreement shall, without limiting the generality, provide the following:

(a) the receipt by the Insurance Trustee of any proceeds of insurance payable to the Corporation.

(b) the holding of such proceeds in trust for those entitled thereto pursuant to the provisions of this declaration;

(c) the disbursement of such proceeds in accordance with the provisions of the Insurance Trust Agreement;

(d) the notification by the Insurance Trustee to the mortgagees of any insurance monies received by it.

In the event that the Corporation is unable to enter into such agreement with such Trust Company, or such Chartered Bank, by reason of their refusal to act, the Corporation may enter into such agreement with such other corporation authorized to act as a Trustee, as the owners may approve by by-law at a meeting called for that purpose. The Corporation shall pay the fees and disbursements of any Insurance Trustee and any fees and disbursements shall constitute a common expense.

(2) In the event that:

(a) The Corporation is obligated to repair any unit insured under paragraph (1), sub clause (b) of Clause X hereof, in accordance with the provisions of Section 41(6) or Section 42(2) of the Act, the Insurance Trustee shall hold all proceeds received by it for the Corporation and shall disburse same in accordance with the provisions of the Insurance Trust Agreement, in order to satisfy the obligation of the Corporation to make such repairs.

(b) There is no obligation by the Corporation to repair any unit in accordance with the provisions of Section 42(2) of the Act and there is termination in accordance with the provisions of Section 43 of the Act, or otherwise, the Insurance Trustee shall hold all proceeds for the owners in the proportion of their respective interests in the common elements and shall pay such proceeds to the owners in such proportions, upon registration of a notice of termination by the Corporation

(c) The board, in accordance with the provisions of Section 42(1) of the Act, determines that there has not been substantial damage to twenty-five per cent (25%) of the building, the Insurance Trustee shall hold all proceeds for the Corporation and owners whose units have been damaged and shall disburse such proceeds for the benefit of the Corporation and the owners whose units have been damaged, as their respective interest may appear, in accordance with the provisions of the Insurance Trust Agreement in order to satisfy their respective obligations to make repairs pursuant to the provisions of Clause VII of this declaration, and Section 41 (6) of the act.

Notwithstanding anything to the contrary herein contained, any proceeds payable by the Insurance Trustee to any owner, in accordance with the provisions of paragraph (b) of this sub-clause (2) of Clause IX hereof shall be subject to payment in favour of any Mortgagee or Mortgagees to whom such loss be payable in such policy or policies of insurance, and in satisfaction of the amount due under any liens registered by the Corporation against such unit. If the Insurance Trustee receives proceeds in excess of twenty five thousand dollars ($25,000.00), the Insurance Trustee shall conduct a search of title for the purpose of ascertaining the interests of any registered Mortgagees prior to the disbursement of any proceeds. Any such proceeds payable shall be subject to payment in favour of any Mortgages or Mortgagees to whom such loss be payable in such policy or policies of insurance, any Mortgages or Mortgagees registered on title to the property to the extent of their insurable interest and in satisfaction of the amount due under any liens registered by the Corporation against such unit or units.