sec.58Use of insurance money not paid under voluntary insurance scheme

sec.58 Use of insurance money not paid under voluntary insurance scheme

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 may, if authorised by a lot owner agreement, apply the amount to the repair, reinstatement or replacement of the damaged property or for another purpose. 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, a specified two-lot scheme is to be terminated, and an order of a court under the Act , or a lot owner agreement, 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 lot owner agreement. (sec.58-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.58-ssec.2) The body corporate may, if authorised by a lot owner agreement, apply the amount to the repair, reinstatement or replacement of the damaged property or for another purpose. (sec.58-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.58-ssec.4) If, because of the damage, a specified two-lot scheme is to be terminated, and an order of a court under the Act , or a lot owner agreement, 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 lot owner agreement.

• (a) 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);
• (b) the balance of the amount must be applied as required by the order or lot owner agreement.