16Mortgage on sale of land

16 Mortgage on sale of land (1) On a sale of land for an estate in fee-simple by trustees or by a tenant for life, or statutory owner with the consent of the trustees of the settlement or order of the Court, the trustees, or the tenant for life or statutory owner may, where the proceeds are liable to be invested, contract that the payment of any part, not exceeding three-fifths, of the purchase money shall be secured by a mortgage of the land sold, with or without the security of any other property, and such mortgage shall, if any buildings or other improvements are comprised in the mortgage, contain a covenant by the mortgagor to keep them insured against loss or damage by fire to the full insurable value thereof. (2) The trustees shall not be bound to obtain any report as to the value of the land or other property to be comprised in such mortgage, or any advice as to the making of the loan, and shall not be liable for any loss which may be incurred by reason only of the security being insufficient at the date of the mortgage. (3) Where the sale referred to in subsection (1) of this section is made under the order of the Court, the powers conferred by that subsection shall apply only if and so far as the Court may by order direct. No. 5770 s. 17.