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ECT~C~N ~
<br />1.1.1 ~ U ~~.L~~
<br />~,;1, Required ~overa e, The Association shall obtain and ~narntain, at a rninimu~n, a
<br />rnastcr pal~cy ar policies of insurance in accordance with the insurance re~uirerne~ats set fo~h ~.
<br />M~~OA~ and the additional requirements set forth herein, issued by a reputable insurance
<br />can~pany ar companies authorized to da business in the state of Minnespta, as follows;
<br />9,~,~, Prape~y insurance in broad form caverin~ all risl~s of physical loss in~an .
<br />amount equal to one hundred percent of the insurable "replacement cast" of the Fropez~y,
<br />less deductibles, exclusive of land, footings, excavation and. other items no~ma.lXy ~ ~ ~
<br />excluded from coverage (but including all building service equipxn~nt anal machinery}, ~ ~ ~ .
<br />The Association may ar may not, as determi~.ed by the i3aard, insure the hnpravements ~-
<br />and bettexments referred to in ~ectian ~15B,~~l~~~b~~i~ through (viii of MOI~.~, The
<br />policy or policies shall cover personal property awned. by the Association, The policy ox
<br />policies shalt also contain. "rnflati.on Guard" and. "Ag~~eed Amat~nt" endorsements,
<br />reasona`bIy available. ~ub~ect to approval of the Board, such policy or policies shall
<br />. include such additional endorsements, cnve~ages anal limits with gyres ect to the fare oin
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<br />and other hazards as may be required from time to time by the regulations ~of the Federal
<br />~~busmg Ad~1llStx'at~on ~"~`FZA."), the U,~, l~epa~ent Qf Veterans' Afrairs ~"~',~"~, the
<br />Federal National Mo~gage Association ~"FNMA''} or the Federal Home Laan Mortgage
<br />' ~arporati~n ~"FI~LM~"} as a precondition to heir insuring, p~~rchasing ,ar linan.cing a
<br />n~nrtgage on a Unit, The Board may also, an behalf ofthe Association, enter into binding , , ~ ~ .
<br />. written agreements with a mortgagee, ~.s~~rer or ~servicer, including without lirnftatiau. the .
<br />~'HA, VA, FNMA ox FH~M~, obligating the Association to lrccp ce~ain specified
<br />. ~ coverages or endarsern.ents in effect,
<br />9;1,x. ~ ~a~~nercial general liability insurance covering the use, operation and
<br />xa.aintenance of the Gamrnan Elements and the activities of the Association, with
<br />rnininaurn limits of O~~e Million Dollars per occurrence, against clams far death, bodily
<br />in'u and roe damn e, and such other risl~s as are custa~narily covered by such ~
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<br />policies fox projects ~similar,in construction, location and use to the l'xaperty, The policy
<br />. shall contain a "severability of interest" end.arsernent which shall preclude the, insurer .
<br />from de~.ying the claim 'of an Owner or Occupant because of negligent acts of the
<br />Association. ar other Owners ar Gccupar~ts. Subject to approval of the Board, the policy
<br />shall include such additional endorsements, coverages and limits with respect to such
<br />hazards as may be required by the x~gulatians of the FHA, ~'A, FNMA or i'HLN~~ as a !
<br />' n to their insurin ~~rchasin ar :~nancin a mart a e' an a Unit,
<br />prccond~t~o g~ p g g' , g g ~ ~
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<br />. ~ 9,1,E , ~ Fidelity bond ar insurance coverage against dishonest acts an the part of
<br />directors, officers, managers, txustees, employees or persons responsible for handling
<br />' funds belonging to ar administered by the Association., if deemed to be advisable by the
<br />. ~ ,.
<br />Board ar requtred by the regula~.ans of any ~nanc~ng.related ~nst~tut~on as a pr~cand~t~on
<br />to the uxchase insu.~n ~ grantee or financin of a mort age on ~a Unit, The fidelity
<br />P g~ ~ s g g
<br />bond ar insurance shall na~.e the Association as the named. insured, and shall, subject to !
<br />raval of the Board cam ~ with the rc lotions of the .pNMA, FH~MC, FI3A ar ~A,.
<br />app ~ p y ~
<br />if required by one of such agencies as a preaandition to the purchase, financing, insuring, ,
<br />MP~,~-V1ord 20~t $~~3 ~~'
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