(1) If a declaration or bylaws provide that the homeowners association has the sole authority to decide whether to repair or reconstruct a unit that has suffered damage or whether a unit must be repaired or reconstructed, the board of directors shall obtain blanket all-risk insurance for the full replacement cost of all structures in the planned community. Cost of the coverage shall be a common expense to the association.\n(2) If the declaration or bylaws contain a provision described in subsection (1) of this section, the declaration or bylaws also shall provide:\n(a) Requirements of or limitations on repairing or reconstructing damaged or destroyed property;\n(b) The time within which the repair or reconstruction must begin; and\n(c) The actions the board of directors must take if:\n(A) Damage or destruction is not repaired or replaced; or\n(B) Insurance proceeds exceed or fall short of the costs of repair or reconstruction. [1981 c.782 §52; 1999 c.677 §22; 2007 c.409 §15]
Oregon Legal Code