BML Covenants

9.        INSURANCE

9.1    Common Areas. The entity which has the responsibility for the operation and management of a particular Common Area shall obtain and maintain at all times the types of insurance policies set forth in this Section containing the provisions, without limitation, and in the amounts set forth herein. The premiums for such insurance policies shall be a Common Expense of the Association. The entity which has the responsibility for the operation and management of a particular Common Area may, at its discretion, enter into an agreement with any insti­tutional trustee to supervise the distribution of any insurance proceeds paid under policies of insurance maintained by the Association:

(a) A casualty insurance policy or policies affording fire, flood and lightning and extended coverage insurance for, and in an amount consonant with the full replacement value of all structures within the Common Areas.

(b) A comprehensive general liability insurance, including liability for injuries to and death of persons, and property damage, in such limits as it shall deem desirable, and other liability insurance as it may deem desirable, insuring each Owner, the Association, its directors and officers, the Declarant, the Manager, if any, and their respective employees and agents, as their interests may appear, from liability resulting from an occurrence on or in connection with the Common Areas.

The Association and each Owner hereby waives and releases any and all claims which it or he may have against any Owner, including relatives of an Owner, the Association, its directors and officers, the Declarant, the Manager, if any, and their respective employees and agents, for damage to the Common Areas or to any personal property located in the Common Areas caused by fire or other casualty, to the extent that such damage is covered by fire or other forms of casualty insurance, and to the extent this release is allowed by policies for such insurance. To the extent possible, all policies secured by the Association Board under subsections (a) and (b) above shall contain waivers of the insurer's rights to subrogation against any Owner or Resident, relatives or invitees of an Owner, the Association, its directors and officers, the Declarant, the Manager, if any, and their respective employees and agents.                                                                                 å

9.2   Association Insurance. The Association Board may, in its discretion, obtain any other insurance that it deems advisable including, without limitation:

(a)        Insurance covering the directors and officers from liability for good faith actions beyond the scope of their respective authorities and covering the indemnity set forth in Section 6.11 hereof. Such insurance coverage shall include cross liability claims of one or more insured parties.

(b)      Such worker's compensation and other insurance coverage as is required by law, upon each of the employees of the Association, if any.

(c)     Fidelity bonds indemnifying the Association, the Association Board and the Owners for loss of funds resulting from fraudulent or dishonest acts of any employee of the Association or of any other person handling funds of the Association shall be obtained by the Association in such amounts as the Association Board shall deem desirable.

(d)     Such other insurance policies in the amounts of coverage as may be required by law or authorized by the Board of Directors from time to time. 

(e)   Notwithstanding anything herein to the contrary, the Association shall at all times maintain insurance from time to time required by the Federal National Mortgage Association (“FNMA") for PUD projects in such form and with such limits of liability as FNMA shall designate from time to time.                                       å