Section 1: Restoration of the Property

Except as otherwise provided in this Declaration, in the event of any destruction of any portion of the Property, the repair or replacement of which is the responsibility of the Association, it shall be the duty of the Association to restore and repair the same to its former condition, as promptly as practical. The proceeds of any insurance maintained pursuant to [[| Article 11 hereof for reconstruction or repair of the Property shall be used for such purpose, unless otherwise provided herein. The Board shall be authorized to have prepared the necessary documents to effect such reconstruction as promptly as practical. The Property shall be reconstructed or rebuilt substantially in accordance with the original construction plans if they are available, unless changes recommended by the architectural committee have been approved in writing by seventy-five percent (75%) of the owners and be seventy-five percent (75%) of the holders of record of first mortgages upon the townhomes. If the amount available from the proceeds of such insurance policies for such restoration and repair is at least eighty-five percent (85%) of the estimated cost of restoration and repair, a reconstruction assessment of the owners shall be levied by the Board of Directors to provide the necessary for such reconstruction, over and above the amount of any insurance proceed available for such purpose. If the amount available from the proceeds of such insurance policies for such restoration and repair is less than eighty-five percent (85%) of the estimated cost of restoration and repair, the owners by the vote or written assent of not less than seventy-five percent (75%) of the owners, together with the approval of at least seventy-five percent (75%) of the first mortgagees of record of the townhomes in the project, shall determine whether the Association shall be authorized to levy a reconstruction assessment and proceed with such restoration and repair. If the owners and their mortgagees, as provided above, determine that the cost of such restoration and repair would be substantial and that it would not be in their best interests to proceed with the same, the owners may, at their discretion, proceed as provided by Section 2 below.

Section 2: Sale of Property.

If the amount available from the proceeds of the insurance policies maintained by the Association is less than eighty-five percent (85%) of the cost of reconstruction, a certificate of the resolution authorizing such reconstruction shall be filed within six (6) months from the date of such destruction and, if such certificate is not recorded within said period, it shall be conclusively presumed that the owners have determined not to rebuild said improvements. In the event of a determination not to rebuild, the Association, acting through —

Section 3: [Unknown Title]

— the successors of each owner, whether by deed, gift, devise, or by operation of law, for their own benefit of all other owners, specifically waive and abandon all rights, interests and causes of action for a judicial partition of the tenancy in common ownership of the project and do further covenant that no action for such judicial partition shall be instituted, prosecuted or reduced to judgement.

Section 4: Interior Damage

With the exception of any casualty or damage insured against by the Association pursuant to Article 11, Section 1 of this Declaration, restoration and repair of any damage to the interior of any individual residence, including without limitation all fixtures, cabinets and improvements therein, together with restoration and repair of all interior paint, plumbing, walls, floor, wall coverings and floor coverings, shall be made by and at the individual expense of the owner of the residence so damaged. In the event of a determination to rebuild the Property after partial or total destruction, as provided in this Article 12, such interior repair and restoration shall be completed as promptly as practical and in a lawful and workmanlike manner, in accordance with plans approved by the architectural committee as provided herein.

Section 5: Notice to Owners and Listed Mortgagees

The Board, immediately upon having knowledge of any damage or destruction to the common Property, or any portion thereof, which damage or destruction is substantial or may be restored only at a cost exceeding Ten Thousand Dollars ($10,000), shall promptly notify all owners, all institutional holder of first mortgages on townhomes in the project, and all other mortgagees who have filed a written request for such notice with the Board.