sec.122Application of insurance money

### sec.122 Application of insurance money This section applies if money is received under an insurance of mortgaged property. The mortgagee may require that the money be applied towards reinstatement of the property. The mortgagor may require that the money be applied towards reinstatement of the property only if— the mortgage expressly states the money may be applied towards reinstatement of the property; or the mortgagor insured the property for the reinstatement value of the property— to comply with a requirement under the mortgage to insure the property for the reinstatement value; or with the consent of the mortgagee. The mortgagee may require that the money be applied towards discharge of the mortgage money only if— the mortgagee insured the property; and the mortgage expressly states the money may be applied towards discharge of the mortgage money. The right of the mortgagor under subsection (3) overrides any right of the mortgagee under subsection (4) . This section applies despite any agreement to the contrary. In this section— reinstatement includes replacement. (sec.122-ssec.1) This section applies if money is received under an insurance of mortgaged property. (sec.122-ssec.2) The mortgagee may require that the money be applied towards reinstatement of the property. (sec.122-ssec.3) The mortgagor may require that the money be applied towards reinstatement of the property only if— the mortgage expressly states the money may be applied towards reinstatement of the property; or the mortgagor insured the property for the reinstatement value of the property— to comply with a requirement under the mortgage to insure the property for the reinstatement value; or with the consent of the mortgagee. (sec.122-ssec.4) The mortgagee may require that the money be applied towards discharge of the mortgage money only if— the mortgagee insured the property; and the mortgage expressly states the money may be applied towards discharge of the mortgage money. (sec.122-ssec.5) The right of the mortgagor under subsection (3) overrides any right of the mortgagee under subsection (4) . (sec.122-ssec.6) This section applies despite any agreement to the contrary. (sec.122-ssec.7) In this section— reinstatement includes replacement. - (a) the mortgage expressly states the money may be applied towards reinstatement of the property; or - (b) the mortgagor insured the property for the reinstatement value of the property— (i) to comply with a requirement under the mortgage to insure the property for the reinstatement value; or (ii) with the consent of the mortgagee. - (i) to comply with a requirement under the mortgage to insure the property for the reinstatement value; or - (ii) with the consent of the mortgagee. - (i) to comply with a requirement under the mortgage to insure the property for the reinstatement value; or - (ii) with the consent of the mortgagee. - (a) the mortgagee insured the property; and - (b) the mortgage expressly states the money may be applied towards discharge of the mortgage money.