P.R. Laws tit. 31, § 1293h
In the event of a fire, the indemnization of the insurance of the building shall be used for the reconstruction of the same, with the exception of the matters set forth in Section 3, subsection 5 of the Mortgage and Property Registry Act.
After receipt of the insurer’s indemnization offer, the Board of Directors shall prepare a plan for the distribution of the reconstruction funds, detailing the specific amounts to be used in the reconstruction of each unit, pursuant to the appraisals made, and of the remaining common areas of the building. The report shall be circulated among the unit owners not less than fifteen (15) days in advance of the holding of an extraordinary assembly convened for the exclusive consideration of the offers submitted and the referenced report. The Condominium Association shall finally decide, by majority vote, all matters pertaining to the indemnization, including the acceptance of the amounts offered by the insurance companies and the priorities for the works to be performed.
If the Condominium Association decides to receive the total amount of the indemnization to distribute same afterwards among the unit owners, the monies shall be deposited in a special account, from which withdrawals may only be made with prior sworn certification by the Treasurer and the Secretary, stating the agreement in which the Condominium Association authorizes the withdrawal of funds, and if the same has not been challenged before any judicial or administrative forum.
The Condominium Association shall acquire a fidelity bond for the Director or the directors that shall respond for the unauthorized management of these funds.
When said reconstruction comprises the totality of the building or more than three quarter parts of the same, the reconstruction shall not be obligatory. In such a case, and except for the unanimous agreement of the unit owners otherwise, the indemnization shall be proportionally paid to the corresponding parties, and regarding the remaining parts of the building, it shall be done as set forth in § 1283 of this title.
If the reconstruction proceeds, it shall be done as set forth for said hypothesis in the constitution title of the horizontal property, or otherwise, whatever is agreed upon by the Condominium Owner’s Association.
History —June 25, 1958, No. 104, p. 243, § 44; June 4, 1976, No. 157, p. 461, § 10; Aug. 11, 1995, No. 153, § 1; May 21, 1996, No. 43, § 1; Apr. 5, 2003, No. 103, § 36, eff. 90 days after Apr. 5, 2003.