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200709536 15.7 The Election Not to Repair or Replace. The cost ofrepair or replacement in excess of insurance proceeds and reserves is a common expense. Ifthe entire condominium is not repaired or replaced: 15.7.1 The insurance proceeds attributable to the damaged common elements in proportion to their common element interest shall be used to restore the damaged area to a condition compatible with the remainder of the condominium. 15.7.2 The insurance proceeds attributable to units and allocated limited elements which are not rebuilt shall be distributed in proportion to their common element interests or as otherwise provided in this Declaration to the owners of those units and the owners of the units to which the limited common elements where allocated, or to lien holders as their interest may appear. 15.7.3 The remainder of the proceeds shall be distributed to all the unit owners or lien holders as their interest may appear in proportion to the common element interests of all the units. 15.8 Distribution of Insurance Proceeds on Termination. Notwithstanding the provisions of Sections 15.4, 15.5 and 15.6 of this Article, Article VX. Of this Declaration governs the distribution of insurance proceeds ifthe condominium is terminated. 15.9 Additional Insurance. This Section does not prohibit the Declaration from requiring additional or greater amounts of insurance coverage, nor does it prohibit the Executive Board from acquiring additional or greater amounts of coverage as it reasonably deems appropriate. 15.10 Fidelity Bonds. The Association may maintain blanket fidelity bonds for all officers, directors, trustees and employees of the Association and all other persons handling or responsible for funds of or administered by the Association. Where the Association has delegated some or all of the responsibility for the handling of funds to a management agent, the Association may require the management agent to provide fidelity bonds for its officers, employees and agents handling or responsible for funds of, or administered on behalf of the Association. The total amount of the fidelity bond coverage shall be based upon the best business judgment ofthe Board, and the fidelity bonds themselves shall name the Association as an obligee. 15.11 Pursuant of Premiums. Premiums for all insurance obtained by the Association pursuant to this Article shall be paid for by the Association. 15.12 Insurance Trustee. Notwithstanding any other provisions of this Article, there may be named as an insured on behalf of the Association, the Association's authorized representative, including any trustee with whom such Association may enter into any Insurance Trust Agreement or any successor to such trustee ("insurance trustee"), who shall have the exclusive authority to negotiate losses under any policy providing such property or liability insurance to the Association. Each owner, by accepting a deed to, or otherwise becoming the owner of, a unit, appoints the Association or any Insurance Trustee or substitute Insurance Trustee designated by the Association, as attorney-in-fact for the purpose of purchasing such insurance, including, without limitation: the collection and appropriate disposition of the proceeds thereof; the negotiation oflosses and execution of releases of liability; the execution of all documents; and the performance of all other acts necessary to accomplish such purpose. The Association or any insurance trustee shall receive, hold or otherwise property dispose of any proceeds of insurance in trust for owners and lien holders, as their interests may appear. ARTICLE XVI. ASSOCIATION AS TRUSTEE - 16 -