108Amount and application of insurance money

108 Amount and application of insurance money (1) The amount of an insurance effected by a mortgagee against loss or damage by fire under the power in that behalf conferred by this Part shall not exceed the amount specified in the mortgage deed, or, if no amount is therein specified, the full insurable value of the buildings upon the mortgaged land or the amount owing to the mortgagee in respect of the mortgage. (2) An insurance shall not, under the power conferred by this Part, be effected by a mortgagee in any of the following cases, namely— (a) where there is a declaration in the mortgage deed that no insurance is required; (b) where an insurance is kept up by or on behalf of the mortgagor in accordance with the mortgage deed; (c) where the mortgage deed contains no stipulation respecting insurance, and an insurance is kept up by or on behalf of the mortgagor with the consent of the mortgagee to the amount to which the mortgagee is by this Part authorized to insure. (3) All money received on an insurance of mortgaged property against loss or damage by fire or otherwise effected under this Part, or any corresponding previous enactment or on an insurance for the maintenance of which the mortgagor is liable under the mortgage deed, shall, if the mortgagee so requires, be applied by the mortgagor in making good the loss or damage in respect of which the money is received. (4) Without prejudice to any obligation to the contrary imposed by law, or by special contract, a mortgagee may require that all money received on an insurance of mortgaged property against loss or damage by fire or otherwise effected under this Part, or any corresponding previous enactment, or on an insurance for the maintenance of which the mortgagor is liable under the mortgage deed, be applied in or towards the discharge of the mortgage money. No. 3754 s. 109.