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Land Titles Act 1925
122Abbreviated form in mortgage
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122 Abbreviated form in mortgage
Whenever in any memorandum of mortgage the mortgagor employs
the following form of words, namely, ‘that the mortgagor will insure’
that form of words shall imply the following covenant by the
mortgagor:
That the mortgagor will insure, and, so long as the principal money
and interest secured by the mortgage or any part thereof remains
unpaid or the term expressed in the mortgage has not expired, will
keep insured, in the name of the mortgagee, in some public insurance
office to be approved by the mortgagee, against loss or damage by
fire, to the full amounts specified in the mortgage, or, if no amount be
specified, then to their full value, all buildings tenements or premises
erected on the land which are of a nature or kind capable of being
insured against loss or damage by fire, and that the mortgagor will at
the request of the mortgagee hand over and deposit with the
mortgagee the policy of every such insurance, and produce to the
mortgagee receipt and receipts for the annual or other premiums
payable on account thereof, and also that all moneys to be received
under or by virtue of any such insurance, shall, in the event of loss or
damage by fire, be laid out and expended in making good such loss
or damage:
Provided that if default is made in the observance or performance of
the covenants last abovementioned, the mortgagee may, without
prejudice to and concurrently with the powers granted him or her by
his or her memorandum of mortgage or by this Act provided, insure
the building; and the costs and charges of the insurance shall, until
the mortgage is discharged, be a charge upon the land recoverable in
like manner as interest in arrear.