sec.127Use of insurance money not paid under voluntary insurance scheme [ SM, s 208 ]

sec.127 Use of insurance money not paid under voluntary insurance scheme [ SM, s 208 ]

This section applies if the body corporate receives an amount of insurance money for damage to property, other than an amount paid under a voluntary insurance scheme. The body corporate— if authorised by a resolution without dissent of the body corporate—may apply the amount for a purpose other than the repair, reinstatement or replacement of the damaged property; or if paragraph (a) does not apply—must apply the amount as soon as practicable to the repair, reinstatement or replacement of the damaged property. However, the amount must not be applied to the repair, reinstatement or replacement of the property if the work would, apart from this section, be unlawful. If, because of the damage, the community titles scheme is to be terminated, and an order of a court under the Act , or a resolution without dissent of the body corporate, requires the application of the amount for a purpose other than the repair, reinstatement or replacement of the damaged property, the amount must be applied as follows— first, the amount must be applied towards the discharge of registered mortgages, but the amount applied towards a mortgage over a particular lot can not be more than the proportion of the total insurance money attributable to the lot; the balance of the amount must be applied as required by the order or resolution. (sec.127-ssec.1) This section applies if the body corporate receives an amount of insurance money for damage to property, other than an amount paid under a voluntary insurance scheme. (sec.127-ssec.2) The body corporate— if authorised by a resolution without dissent of the body corporate—may apply the amount for a purpose other than the repair, reinstatement or replacement of the damaged property; or if paragraph (a) does not apply—must apply the amount as soon as practicable to the repair, reinstatement or replacement of the damaged property. (sec.127-ssec.3) However, the amount must not be applied to the repair, reinstatement or replacement of the property if the work would, apart from this section, be unlawful. (sec.127-ssec.4) If, because of the damage, the community titles scheme is to be terminated, and an order of a court under the Act , or a resolution without dissent of the body corporate, requires the application of the amount for a purpose other than the repair, reinstatement or replacement of the damaged property, the amount must be applied as follows— first, the amount must be applied towards the discharge of registered mortgages, but the amount applied towards a mortgage over a particular lot can not be more than the proportion of the total insurance money attributable to the lot; the balance of the amount must be applied as required by the order or resolution.

• (a) if authorised by a resolution without dissent of the body corporate—may apply the amount for a purpose other than the repair, reinstatement or replacement of the damaged property; or