Corporation shall maintain insurance
27. (1) The corporation shall obtain and maintain insurance on its own behalf and on behalf of the owners of the units and common elements, excluding improvements and betterments made or acquired by an owner, against major perils to the replacement cost thereof, and against such other perils as may be specified by the declaration or by-laws, and for this purpose the corporation shall be deemed to have an insurable interest in the units and common elements. Payment of insurance (2) Any payment by an insurer under a policy of insurance entered into under subsection (1) shall, despite the terms of the policy, be paid to the order of insurance trustees, if any, or otherwise shall be paid to or to the order of the corporation and, subject to subsection 42 (2), the corporation shall forthwith use the proceeds for the repair or replacement of the damaged units and common elements so far as the same may be effected lawfully. Insurance under subs. (1) not other insurance (3) Insurance obtained and maintained by a corporation under subsection (1) shall be deemed not to be other insurance for the purpose of any prohibition of or condition against other insurance in a policy of an owner insuring against loss of or damage to the owner’s unit or the owner’s interest in the common elements and covering only to the extent that the insurance placed by the corporation is inapplicable, inadequate or ineffective. Insurance non-contributory (4) Despite section 150 of the Insurance Act or the provisions of the policy, a policy of insurance issued under subsection (1) and any other policy of insurance, except another policy issued under subsection (1), are not liable to be brought into contribution with each other. Liability insurance (5) The corporation shall obtain and maintain insurance against its liability resulting from breach of duty as occupier of the common elements or arising from the ownership, use or operation, by it or on its behalf, of boilers, machinery, pressure vessels and motor vehicles, in addition to such other insurance as may be specified in the declaration or by-laws. Act of person does not breach policy (6) Despite the terms of a policy issued under subsection (1), no act of any person shall be deemed to be a breach of the conditions of the policy where such act is prejudicial to the interests of the corporation or the owners. Provision for notice (7) A policy of insurance issued under subsection (1) shall be deemed to include provision for sixty days notice sent by registered mail to be given by the insurer to the corporation and to the insurance trustees, if any, in the event of termination of the insurance by the insurer. Application of section (8) In the event that any provision of a policy issued under subsection (1) or any part of the Insurance Act is in conflict or inconsistent with this section or any part thereof, the provisions of this section shall apply. Capacity to maintain insurance (9) Nothing in this section shall be construed to restrict the capacity of a corporation, an owner or any other person to obtain and maintain insurance in respect of any insurable interest. Insurance money to be used for repairs (10) Despite any provision in a mortgage and despite subsection 6 (2) of the Mortgages Act, a mortgagee shall not require that any money received on an insurance of the property or any part thereof be applied in or towards the discharge of the money due under the mortgagee’s mortgage and any such requirement is void. Definition (11) For the purposes of subsection (1), “major perils” means the perils of fire, lightning, smoke, windstorm, hail, explosion, water escape, strikes, riots or civil commotion, impact by aircraft and vehicles, vandalism and malicious mischief. R.S.O. 1990, c. C.26, s. 27. BY-LAWS AND RESOLUTIONS