§ 34-36-31 - Repairs on insured loss.
SECTION 34-36-31
§ 34-36-31 Repairs on insured loss. –Unless otherwise provided in the declaration or bylaws, if the insuranceproceeds are insufficient to reconstruct the building, damage to, ordestruction of, the building shall be promptly repaired and restored by themanager or management committee, using proceeds of insurance, if any, on thebuilding for that purpose, and the unit owners shall be liable for assessmentfor any deficiency. However, if three-fourths (3/4) or more of the building isdestroyed or substantially damaged and if the unit owners, by a vote of atleast three-fourths (3/4) of the unit owners, do not voluntarily, within onehundred (100) days after such destruction or damage, make provision forreconstruction, the manager or management committee shall record, with thecounty recorder, a notice setting forth those facts, and upon the recording ofthe notice:
(1) The property shall be deemed to be owned in common by theunit owners;
(2) The undivided interest in the property owned in commonwhich shall appertain to each unit owner shall be the percentage of undividedinterest previously owned by the owner in the common elements;
(3) Any liens affecting any of the units shall be deemed tobe transferred in accordance with the existing priorities to the undividedinterest of the unit owner in the property; and
(4) The property shall be subject to an action for partitionat the suit of any unit owner, in which event the net proceeds of sale,together with the net proceeds of the insurance on the property, if any, shallbe considered as one fund and shall be divided among all the unit owners in apercentage equal to the percentage of undivided interest owned by each owner inthe property, after first paying out of the respective shares of the unitowners, to the extent sufficient for the purposes, all liens on the undividedinterest in the property owned by each unit owner.