46:8B-24 - Fire or other casualty - New Jersey Statutes

46:8B-24.  Fire or other casualty
    (a) Damage to or destruction of any improvements on the condominium property  or any part thereof or to a common element or elements or any part thereof  covered by insurance required to be maintained by the association shall be  repaired and restored by the association using the proceeds of any such  insurance.  The unit owners directly affected shall be assessed on an equitable  basis for any deficiency and shall share in any excess.

    (b) If the proceeds of such insurance shall be inadequate by a substantial amount to cover the estimated cost of restoration of an essential improvement or common element or if such damage shall constitute substantially total destruction of the condominium property or of one or more of the buildings comprising the condominium property or if 75% of the unit owners directly affected by such damage or destruction voting in accordance with the procedures  established by the by-laws shall determine not to repair or restore, the  association shall proceed to realize upon the salvage value of that portion of  the condominium property so damaged or destroyed either by sale or such other  means as the association may deem advisable and shall collect the proceeds of  any insurance.  Thereupon the net proceeds of such sale, together with the net  proceeds of such insurance shall be considered as one fund to be divided among  the unit owners directly affected by such damage or destruction in proportion  to their respective undivided ownership of the common elements.  Any liens or encumbrances on any affected unit shall be relegated to the interest in the fund of the unit owners.

    (c) The master deed or the by-laws may make other and different provision covering the eventualities set forth in paragraphs (a) and (b) of this section or covering other results of damage or destruction to any part or all of the condominium property, notwithstanding the provisions of paragraphs (a) and (b).   If the master deed or by-laws shall require insurance against fire and other  casualty with respect to individual units, it shall also provide for the  application of the proceeds and the rights and obligations of unit owners in  case of damage or destruction.

     L.1969, c. 257, s. 24, eff. Jan. 7, 1970.