57-8-31 - Disposition of property where insurance proceeds are insufficient for reconstruction. - Utah Statutes

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Statutes > Utah > Title-57 > Chapter-08 > 57-8-31

57-8-31. Disposition of property where insurance proceeds are insufficient forreconstruction.
Unless otherwise provided in the declaration or bylaws, if the insurance proceeds areinsufficient to reconstruct the building, damage to or destruction of the building shall be promptlyrepaired and restored by the manager or management committee, using proceeds of insurance, ifany, on the building for that purpose, and the unit owners shall be liable for assessment for anydeficiency. However, if three-fourths or more of the building is destroyed or substantiallydamaged and if the unit owners, by a vote of at least three-fourths of such unit owners, do notvoluntarily, within one hundred days after such destruction or damage, make provision forreconstruction, the manager or management committee shall record, with the county recorder, anotice setting forth such facts, and upon the recording of such notice:
(1) The property shall be deemed to be owned in common by the unit owners;
(2) The undivided interest in the property owned in common which shall appertain toeach unit owner shall be the percentage of undivided interest previously owned by such owner inthe common elements;
(3) Any liens affecting any of the units shall be deemed to be transferred in accordancewith the existing priorities to the undivided interest of the unit owner in the property; and
(4) The property shall be subject to an action for partition at the suit of any unit owner, inwhich event the net proceeds of sale, together with the net proceeds of the insurance on theproperty, if any, shall be considered as one fund and shall be divided among all the unit owners ina percentage equal to the percentage of undivided interest owned by each owner in the property,after first paying out of the respective shares of the unit owners, to the extent sufficient for thepurposes, all liens on the undivided interest in the property owned by each unit owner.

Enacted by Chapter 111, 1963 General Session

State Codes and Statutes

Statutes > Utah > Title-57 > Chapter-08 > 57-8-31

57-8-31. Disposition of property where insurance proceeds are insufficient forreconstruction.
Unless otherwise provided in the declaration or bylaws, if the insurance proceeds areinsufficient to reconstruct the building, damage to or destruction of the building shall be promptlyrepaired and restored by the manager or management committee, using proceeds of insurance, ifany, on the building for that purpose, and the unit owners shall be liable for assessment for anydeficiency. However, if three-fourths or more of the building is destroyed or substantiallydamaged and if the unit owners, by a vote of at least three-fourths of such unit owners, do notvoluntarily, within one hundred days after such destruction or damage, make provision forreconstruction, the manager or management committee shall record, with the county recorder, anotice setting forth such facts, and upon the recording of such notice:
(1) The property shall be deemed to be owned in common by the unit owners;
(2) The undivided interest in the property owned in common which shall appertain toeach unit owner shall be the percentage of undivided interest previously owned by such owner inthe common elements;
(3) Any liens affecting any of the units shall be deemed to be transferred in accordancewith the existing priorities to the undivided interest of the unit owner in the property; and
(4) The property shall be subject to an action for partition at the suit of any unit owner, inwhich event the net proceeds of sale, together with the net proceeds of the insurance on theproperty, if any, shall be considered as one fund and shall be divided among all the unit owners ina percentage equal to the percentage of undivided interest owned by each owner in the property,after first paying out of the respective shares of the unit owners, to the extent sufficient for thepurposes, all liens on the undivided interest in the property owned by each unit owner.

Enacted by Chapter 111, 1963 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-57 > Chapter-08 > 57-8-31

57-8-31. Disposition of property where insurance proceeds are insufficient forreconstruction.
Unless otherwise provided in the declaration or bylaws, if the insurance proceeds areinsufficient to reconstruct the building, damage to or destruction of the building shall be promptlyrepaired and restored by the manager or management committee, using proceeds of insurance, ifany, on the building for that purpose, and the unit owners shall be liable for assessment for anydeficiency. However, if three-fourths or more of the building is destroyed or substantiallydamaged and if the unit owners, by a vote of at least three-fourths of such unit owners, do notvoluntarily, within one hundred days after such destruction or damage, make provision forreconstruction, the manager or management committee shall record, with the county recorder, anotice setting forth such facts, and upon the recording of such notice:
(1) The property shall be deemed to be owned in common by the unit owners;
(2) The undivided interest in the property owned in common which shall appertain toeach unit owner shall be the percentage of undivided interest previously owned by such owner inthe common elements;
(3) Any liens affecting any of the units shall be deemed to be transferred in accordancewith the existing priorities to the undivided interest of the unit owner in the property; and
(4) The property shall be subject to an action for partition at the suit of any unit owner, inwhich event the net proceeds of sale, together with the net proceeds of the insurance on theproperty, if any, shall be considered as one fund and shall be divided among all the unit owners ina percentage equal to the percentage of undivided interest owned by each owner in the property,after first paying out of the respective shares of the unit owners, to the extent sufficient for thepurposes, all liens on the undivided interest in the property owned by each unit owner.

Enacted by Chapter 111, 1963 General Session