Page:United States Statutes at Large Volume 77.djvu/490

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PUBLIC LAW 88-218-DEC. 21, 1963

[77 STAT.

(liieiitly recorded deeds of trust, mortgages, or eneiiinbrjinces: Provided. That the lender thereunder shall jfirst obtain from the manager, board of directors, or of administration a written statement as provided m section 18 of this Act reflecting that payments due under this lien are current as of the date of recordation of such subsequent deed of trust, mortgage, or encumbrance. SEC.

20. INSURING BUILDING AGAINST R I S K S; INDIVIDUAL EIGHTS

OF CO-OWNERS.—The manager or the board of directors, if required by the bylaws or by a majority of the co-owners, or at the request of a mortgagee having a first mortgage of record covering a unit, shall have the authority to, and shall, obtain insurance for the property against loss or damage by fire and such other hazards under such terms and for such amounts as shall be required or requested. Such insurance coverage shall be written on the property in the name of such manager or of the board of directors of the council of co-owners, as trustee for each of the unit owners in the percentages established in the declaration. Premiums shall be common expenses. Provision for such insurance shall be without prejudice to the right of each unit owner to insure his own unit for his benefit. SEC. 21. APPLICATION OF INSURANCE PROCEEDS TO EECONSTRUCTION; PRO RATA DISTRIBUTION IN CERTAIN CASES; RULES GOVERNING.—(a)

In case of fire or other disaster the insurance indemnity shall, except as provided in the next succeeding paragraph of this section, be applied to reconstruct the building. (b) Reconstruction shall not be compulsory where destruction coml)rises the whole or more than two-thirds of the buildings and other improvements in a condominium project. In such cases, and unless otherwise unanimously agreed upon by the co-owners, the indemnity shall be delivered pro rata to the co-owners entitled to it in accordance with provisions made by the bylaws or in accordance with a decision of three-fourths of the co-owners, if there be no bylaw provision, after first paying off, out of the respective shares of the unit owners, to the extent sufficient for the purpose, all liens on the unit of each co-owner. Should it be proper to proceed with the reconstruction, the provision for such eventuality made in the bylaws shall be observed, or in lieu thereof, the decision of the council of co-owners shall prevail, subject to all provisions of law and regulations of the District of Columbia then in effect. SEC. 22. SHARING OF RECONSTRUCTION COST W H E R E BUILDING I S NOT INSURED OR INSURANCE INDEMNITY I S INSUFFICIENT.—^\^'^here the

building is not insured or where the insurance indemnity is insufficient to cover the cost of reconstruction the new building costs shall be paid by all the co-owners in the same proportion as their proportionate ownership of the common elements of the condominium project, and if any one or more of those composing the minority shall refuse to make such payments, the majority may proceed with the reconstruction at the expense of all the co-owners and the share of the resulting common expense may be assessed against all the co-owners and such assessment for this expense shall have the same priority as provided under section 17 of this Act. S E ( \ 23. SEPARATE TAXATION.— (a) For the purposes of assessment and taxation of property constituted into a horizontal property regime and to conform to the system of numbering squares, lots, blocks, and parcels for taxation purposes in effect in the District of Columbia, each condominium unit duly situate upon a subdivided lot and square shall bear a number or letter that will distinguish it from every other condominium unit situate in said lot and square. (b) Each of said condominium units shall be carried on the records of the District of Columbia as a separate and distinct entity and all

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