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the Lot, if any. Notwithstanding any of the above, the Association may elect to secure a master policy which provides for such insurance. Said master policy shall be issued in the name of the Association as insurance trustee for the Owners, and shall provide that losses shall be payable to the Association as trustee and mortgagees of record, if any. If the Association chooses to secure such master policy, every Owner must participate in said master policy and must pay its share of the premiums for such master policy. Such premiums may be paid by the Association and then billed to the Owners as a part of the annual assessments, or may be billed directly to the Owners by the insurer. Section 2. Association as Insurance Trustee. In the event of destruction or damage by causes covered by insurance referred to in Section 1 above, all proceeds of said insurance coverage shall be payable to the Association as insurance trustee for the Owner of the damaged Lot and to the mortgagee or mortgagees of record of the damaged Lot. Said insurance proceeds shall be applied and administered as follows: (a) In the event of an insured loss to a Lot, all insurance proceeds paid to the Association and mortgagee or mortgagees of record of the damaged Lot shall be held by the first mortgagee of record of the damaged Lot and, if there is no mortgagee or if such mortgagee desires, by the Association, such proceeds to be held in either event in escrow for restoration. (b) In the event of an insured loss to a Lot, the Owner of such Lot shall within 30 days after the insurance proceeds are deposited with the first mortgagee or Association in accordance with paragraph a above, enter into a firm contract with a qualified builder providing for the reconstruction of the improvements, in substantially the same condition as existed immediately prior to the insured loss; provided, however, that no contract shall be entered into by such Owner for an amount in excess of the insurance proceeds then held by the mortgagee or Association until additional funds are deposited by such Owner in escrow as above provided in an amount equal to the excess of all costs of construction as set forth in such contract over the insurance proceeds available for such purpose, which additional funds such Owner shall be bound to deposit. Said reconstruction shall be commenced and completed with due diligence and in no event shall said work be completed later than 180 days after said insurance proceeds are deposited in escrow as aforesaid. The Association and mortgagee or mortgagees of record of the Lot affected shall have the right, but not the obligation, to deposit such additional funds in excess of insurance proceeds as may be required to permit reconstruction as herein provided. (c) In the event such Owner fails to enter into a contract as provided in paragraph (b) above, for the reconstruction of the improvements as provided above; or in the event that reconstruction -16-