sec.58-oc.2Insurance of mortgaged lot

### sec.58-oc.2 Insurance of mortgaged lot A contract of insurance may be entered into by a lessee in respect of damage to his or her lot in a sum equal to the amount secured at the date of the contract by mortgage of the lease of the lot and, where such a contract is in force— subject to the terms and conditions of the contract— a payment to be made under that contract by the insurer in respect of damage shall be made to each mortgagee whose interest is noted on the contract in order of his or her respective priority; and the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient, at the date of the loss, to discharge the mortgage of the lease of the lot, whichever is the least amount; and where the amount so paid by the insurer equals the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to an assignment of that mortgage; and where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to secure the amount so paid by a transfer of the bill of mortgage of the lease to the insurer and the mortgagee as tenants in common in undivided shares proportional to the amount paid by the insurer and the balance necessary to discharge the mortgagee’s interest. (amended) A contract of insurance entered into as referred to in subsection (1) shall not be liable to be brought into contribution with any other such contract of insurance except another such contract of insurance which— is in respect of damage to the same lot; and relates to the same mortgage debt; as that referred to in the contract of insurance first mentioned in this subsection. (sec.58-oc.2-ssec.1) A contract of insurance may be entered into by a lessee in respect of damage to his or her lot in a sum equal to the amount secured at the date of the contract by mortgage of the lease of the lot and, where such a contract is in force— subject to the terms and conditions of the contract— a payment to be made under that contract by the insurer in respect of damage shall be made to each mortgagee whose interest is noted on the contract in order of his or her respective priority; and the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient, at the date of the loss, to discharge the mortgage of the lease of the lot, whichever is the least amount; and where the amount so paid by the insurer equals the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to an assignment of that mortgage; and where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to secure the amount so paid by a transfer of the bill of mortgage of the lease to the insurer and the mortgagee as tenants in common in undivided shares proportional to the amount paid by the insurer and the balance necessary to discharge the mortgagee’s interest. (amended) (sec.58-oc.2-ssec.2) A contract of insurance entered into as referred to in subsection (1) shall not be liable to be brought into contribution with any other such contract of insurance except another such contract of insurance which— is in respect of damage to the same lot; and relates to the same mortgage debt; as that referred to in the contract of insurance first mentioned in this subsection. - (a) subject to the terms and conditions of the contract— (i) a payment to be made under that contract by the insurer in respect of damage shall be made to each mortgagee whose interest is noted on the contract in order of his or her respective priority; and (ii) the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient, at the date of the loss, to discharge the mortgage of the lease of the lot, whichever is the least amount; and - (i) a payment to be made under that contract by the insurer in respect of damage shall be made to each mortgagee whose interest is noted on the contract in order of his or her respective priority; and - (ii) the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient, at the date of the loss, to discharge the mortgage of the lease of the lot, whichever is the least amount; and - (b) where the amount so paid by the insurer equals the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to an assignment of that mortgage; and - (c) where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage of the lease of the lot, the insurer shall be entitled to secure the amount so paid by a transfer of the bill of mortgage of the lease to the insurer and the mortgagee as tenants in common in undivided shares proportional to the amount paid by the insurer and the balance necessary to discharge the mortgagee’s interest. - (i) a payment to be made under that contract by the insurer in respect of damage shall be made to each mortgagee whose interest is noted on the contract in order of his or her respective priority; and - (ii) the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient, at the date of the loss, to discharge the mortgage of the lease of the lot, whichever is the least amount; and - (a) is in respect of damage to the same lot; and - (b) relates to the same mortgage debt;