122Abbreviated form in mortgage

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.