Article IX CONDEMNATION
In the event of a taking in condemnation or by eminent domain of part or all of the Project, the proceeds of any award of compensation shall be payable to a condemnation trustee ('Trustee") which shall be a bank, trust company or real estate management company designated by the Board doing business in Hawaii and having net assets of not less than Five Million Dollars ($5,000,000.00).
In the event all or any of the Apartments are taken and there is not a final judicial determination of the amount of condemnation proceeds allocable to each Apartment so taken, the amount of the condemnation proceeds allocable to each Apartment (including the Apartment's appurtenant interest in the common elements and any limited common elements) shall be determined by a real estate appraiser ("Appraiser") who is a member of the American Institute of Real Estate Appraisers, or any successor organization, and who shall have acted on behalf of the Apartment Owners in the condemnation proceedings, or if no such Appraiser acted on behalf of the Apartment Owners or if more than one Appraiser acted on behalf of the Apartment Owners, then an Appraiser with such qualifications shall be selected by the Board of Directors to determine the amount of condemnation proceeds allocable to each Apartment.
In the event that the entire Project is taken, the Trustee shall pay to each Apartment Owner the portion of the condemnation proceeds determined by the Appraiser to be allocable to the Owner's Apartment.
In the event of a partial taking of the Project in which
(i) any Apartment is physically eliminated, or
(ii) a portion thereof is eliminated and the remaining portion cannot be repaired or rebuilt in a manner satisfactory to the Owner of the Apartment and to the Board of Directors, then such apartment shall be removed from the Project and the Trustee shall disburse to the Owner of such Apartment in full satisfaction of his interest in the Apartment the portion of the proceeds of such award allocable to said eliminated or removed Apartment after deducting the proportionate share of said Apartment in the cost of debris removal.
In the event of any partial taking of the Project the Board shall, subject to the provisions of the preceding sentence concerning removal of an Apartment, arrange for any necessary repair and restoration of the buildings and improvements remaining after the taking in accordance with the design thereof immediately prior to such condemnation or if such repair and restoration in accordance with said design are not permissible under the laws then in force, in accordance with such modified plan as shall be previously .approved by the Board and the mortgagee of record of each Apartment in the Project remaining after such taking. Such work shall be undertaken, and the disbursements thereof shall be made, in the manner prescribed in ARTICLE VII, Section 5(b).
In the event the sums held by the Trustee are insufficient to pay the cost for such repair and restoration, the Board is expressly authorized to pay such excess costs from the maintenance fund and if the maintenance fund is insufficient for this purpose, the Board shall levy a special assessment on the Owners of the remaining apartments in proportion to their common interests. The special assessment shall be secured by the lien created under Section 4 of ARTICLE VI hereof.
In the event sums received as a result of a partial condemnation exceed the total of any amount payable to the Owner of a removed Apartment and the amount of costs for repair and restoration of the remaining buildings and improvements, such excess shall be divided among the Apartment Owners in accordance with their interest in the common elements.
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