MASTER DEED
CREATING AND ESTABLISHING
THE ATLANTIC PALACE
A CONDOMINIUM
Prepared by:
H.B. Munn, Jr.
Vice President, Development
U. S. Capital Corporation
MASTER DEED
THE ATLANTIC PALACE, A CONDOMINIUM
- The Board of Trustees of the Association shall obtain insurance upon
the Condominium Property insuring it (including both the Common Elements
and the Units) against all risks, all premiums of which shall be included
as part of the Common expenses. The Association shall obtain extended
insurance coverage (by policies, each having, if such can be obtained,
a term of not less than three (3) years) upon the Condominium Property
and the improvements thereon including the Units and the Common Elements
insuring the Unit Owners and their mortgagees against loss from fire,
earthquake, flood (if flood insurance is available), vandalism, and
the elements (windstorm, etc.) as well as any other risks that an Institutional
Mortgage Lender, as defined above may deem it reasonable to require,
in an amount (the "Insured Amount”) not less than 115% of the amount
necessary to completely restore and replace all improvements within
the Association without deduction for depreciation. In addition, such
insurance shall provide for an automatic quarterly increase for inflation
of two (2%) percent of the Insured Amount. Not less than thirty (30)
days prior to the anniversary of such policy (ies), the Board shall
obtain three (3) written estimates from reputable general construction
contractors who have engaged in construction of projects similar to
the Association and who are acceptable to the Institutional Mortgagees
described in section 2 hereof, of the total costs of reconstruction
and replacement of all improvements in the Association. The Insured
Amount shall be adjusted on that anniversary date to an amount equal
to 115% of the average of these estimates. In the event such coverage
as obtained contains deductibles and/or is insufficient to so restore
or replace, the Insurance Trustee (as hereafter defined) with the advice
of the Association, shall determine the amounts necessary to cover such
deductibles and/or deficiencies and establish a self-insurance fund
to provide insurance to cover the same. Such self-insurance fund shall
be established and funded in the same manner as are escrow payments
for insurance premiums as hereafter described. Such self-insurance
fund shall have the same loss payee as the policies obtained (i.e.,
the Insurance Trustee for the benefit of the Unit Owners and their mortgagees,
etc.). Such self-insurance fund and any increase and/or replacements
thereto shall be funded by assessment of all of the Unit Owners by the
Insurance Trustee acting on behalf of the Association, which shall be,
when so assessed, an item of Common Expense. Such fund so maintained
together with interest thereon (if any) may be expended only in the
event of:
(i) A loss which such funds insure against;
(ii) The obtaining of other insurance to cover such deductibles
and/or insufficiencies;
(iii) The consent of all Unit Owners and their mortgagees;
or
(iv) Upon termination of the Condominium.
In the event of distribution of such funds for any of the latter
three (3) events, such funds so expended and/or distribution shall
be considered as Common Receipts.
- Any Institutional Mortgage Lenders holding mortgages encumbering
Units in the Condominium having collectively an aggregate of principal
balances of $1,000,000.00 or more shall have the right to approve all
such insurance policies, the companies, the amounts thereof and, if
appropriate, self-insurance sufficient to cover deductibles. Declarant
reserves the right to, by amendment, change the aggregate principal
amount of mortgages which must for the rights granted herein.
-
Insurance premiums are and shall be a part of Common
Expenses; provided, however, they shall be paid separately and to
the Insurance Trustee by each Unit Owner at such address as the Insurance
Trustee shall designate. The Insurance Trustee shall notify the Unit
Owners of the place of payment and the monthly payment which shall
be due and payable by the first day of each month by each Unit Owner.
The amount collected monthly from each Unit Owner shall be an amount
equal to his percentage interest in the Common Expenses, multiplied
by not less than one-twelfth (1/12th) of the annual premiums
of all insurance maintained upon the Condominium Property. Further,
the Insurance Trustee is hereby subrogated to and assigned the lien
rights of the Condominium Association as to each Unit Owner failing
to pay any payment due from him to Insurance Trustee for insurance
premiums or self-insurance to the extent of the amounts due and owning
but unpaid, which rights include the right to file notice or, perfect
and foreclose upon a lien against such Unit Owner as granted to the
Association by the Condominium Act and this Master Deed. Sufficient
funds shall be collected and maintained, if necessary, in advance
by the Insurance Trustee, such that with monthly installments received
by it, it will have sufficient funds to pay the next annual premium
on each insurance policy not less than sixty (60) days prior to the
date such premium on such policy is due and payable. Such funds so
held shall be disbursed and used by it solely to pay the premiums
on the insurance policies described in Section (1) above. Unless
such carrier fails to meet the requirements set forth below, or unless
otherwise instructed by the Board of Trustees and agreed to by the
Institutional Mortgage lenders, the Insurance Trustee shall renew
each policy with, and pay the renewal premium to the same carrier
then carrying said coverage. Such funds shall not be otherwise used
or disbursed except upon written instruction of the board of trustees
consented to by all of the Institutional Mortgage Lenders.
-
Mellon Bank, N.A., with principal offices located
in Pittsburgh, Pennsylvania, its successors and assigns, is hereby
appointed and designated Insurance ‘Trustee provided that the Board
shall have the right in its reasonable discretion to designate another
acceptable Trustee. The Insurance Trustee shall receive all funds
designated for the Self-insurance fund (if any) described in Section
(1) above to be held in trust for the benefit of the Unit Owners and
their mortgagees to be distributed as provided in this Article. The
fund comprising such self-insurance fund shall be placed in one or
more demand accounts of a federally insured bank or trust company
(which shall be interest-bearing accounts if allowed by such institution
and permitted by law). To the extent such funds exceed those required
(as defined in subparagraph A above), they shall be paid over to the
Association as Common Receipts.
- The Insurance Trustee is hereby designated and appointed as agent
for the Association, its Board of Trustees and each and every present
and future Unit Owner, and every mortgagee (if any) of each and every
Unit for the purposes of this article. Any person by acquiring any
ownership or security interest whatsoever in any Unit shall be deemed
to have appointed the Insurance Trustee as his agent for the purpose
of this article. Such appointment is irrevocable; provided, however,
that the present Insurance Trustee may resign upon acceptance by his
successor Insurance Trustee of all rights, powers, and duties granted
to the Insurance Trustee and, further, provided such successor must
be a federally insured bank or other federally insured depository having
a corporate trust department, and must be acceptable for all Institutional
Mortgage Lenders described in Section (2) above. In its capacity as
agent, the Insurance Trustee shall cause itself, as Insurance Trustee,
to be designated as named insured and loss payee, for the benefit of
those for whom it is herein designated as agent, of the insurance policies
procured pursuant to subparagraph A above, and in such capacity to receive
all proceeds from such policies and execute as duly authorized agent
such releases, endorsements or other documents as may be necessary to
be able to receive such proceeds. In the event of any casualty or loss,
the Board of Trustees shall be responsible to accomplish reconstruction,
replacement and repair, provided the Insurance Trustee shall collect
the proceeds of insurance (and to the extent appropriate, from the self-insurance
fund), and distribute such proceeds (by, if appropriate, a percentage
of completion basis) to the parties entitled thereto upon satisfying
itself as to the effectuation of such repairs, replacement and reconstruction.
- The proceeds of any such insurance shall be applied to reconstruct
the improvements as provided in this Master Deed; provided, further,
notwithstanding any provision of the Act to the contrary; reconstruction
shall be compulsory in all events. Any Unit Owner hereof by accepting
title to a unit, and any Institutional Mortgagee or other lien holder,
by accepting any unit, any interest therein, or any interest in the
Submitted Property as security of any type of nature, shall be deemed
by such acceptance to have waived any provision of the Act to the extent
such provision allows or otherwise provides for a failure to reconstruct.
As a consequence, as aforesaid, reconstruction shall be required whether
is comprises the whole or any portion of the Submitted Property. The
provisions hereof are for the express protection of each and every Unit
Owner and Institutional Mortgagee and may not be waived without the
written consent of each and every Unit Owner and Institutional Mortgagee.
- If the property is not insured, or if the insurance proceeds are insufficient
to cover the cost of reconstruction, rebuilding costs shall be paid
by all of the Unit Owners directly affected by the damage and each shall
be responsible for a share equal to the total cost times a fraction,
the numerator of which is 1 and denominator of which is the number of
Units so directly affected. Failure or refusal of payment of any of
the Unit Owners so affected shall result in a lien upon his Unit in
favor of the Association in such amount and may be enforced in the manner
provided for collection of unpaid assessments herein and./or pursuant
to law.
- Nothing herein contained or contained in the By-Laws, or other Condominium
Documents, shall prevent or prejudice the right of each Unit Owner and/or
his mortgagees from insuring his Unit on the account and for the benefit
of himself/and or his mortgagees.
- Any repair and/or restoration must be substantially in accordance
with the plans and specification of the original building and improvements,
or as the buildings or improvements were last constructed or according
to plans approved by the Board of Trustees and all Institutional Mortgage
Lenders of record, which approval shall not be unreasonable withheld.
- The Insurance Trustee is further irrevocably appointed agent for each
Unit Owner, the Association, and their mortgagees for the purpose of
compromising and settling claims arising under insurance policies purchased
under the provisions of this article and to execute and deliver releases
therefor upon the payment of claims.
- Should the Association fail to pay insurance premiums when due, or
should the Board of Trustees or Unit Owners fail to comply with other
insurance requirements herein or imposed by the Institutional Mortgage
Lenders have the right to impose same, said Institutional Mortgage Lender,
or any one of them, shall have the right to obtain Insurance policies
and to advance such sums as are required to maintain or procure such
insurance, and to the extent of the money so advanced, said mortgage
shall be subrogated to the assessment and lien rights of the Association
and its Board of Trustees against the individual Unit Owners for reimbursement
of such sums.
- The Board of Trustees of the Association is authorized and directed
to purchase such additional insurance and for such additional purpose,
including liability insurance (in an amount not less than $500,000.00
per occurrence) and if required by law or deemed desirable by it, Workmen’s
Compensation Insurance to carry out its purposes and/or protect itself,
the Condominium Association, the Common Elements, Units and Unit Owners,
and their mortgagees.
- Any and all insurance coverage obtained under Section (1) above by
the Association pursuant to this article must be obtained from an insurance
carrier admitted and authorized to do business in the State of New Jersey
and having an Alfred M. Best Financial Rating of at least “A+15” which
company shall be affirmatively presumed to be a good and responsible
company and the Developer, the Board of Trustees, the Association, and
the Institutional Mortgage Lender shall not be responsible for the quality
or financial responsibility of the insurance companies provided same
are so rated and so licensed, admitted and approved to do business and
provide such coverage in the State of New Jersey.
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