47Insurance money, application of

##### 47. Insurance money, application of (1) Money receivable by a trustee or any beneficiary under a policy of insurance against the loss of, or damage to, any property subject to a trust, whether by fire or otherwise, (in this section called insurance money) shall, where the policy has been kept up under any trust in that behalf or under any power (statutory or otherwise) or in performance of any covenant or of any obligation (statutory or otherwise) or by a tenant for life impeachable for waste, be capital for the purposes of the trust, except so far as it would be regarded as income under any rule of law. (2) If any insurance money is receivable by any person other than the trustee of the trust, that person shall use his best endeavours to recover and receive the money, and shall pay the net residue thereof, after discharging any costs of recovering and receiving it, to the trustee of the trust, or, if there is no trustee capable of giving a discharge therefor, into Court. (3) Any insurance money, receivable in respect of property held upon trust for sale, shall be held upon the trusts and subject to the powers and provisions applicable to money arising by a sale under the trust; and, in any other case, shall be held upon trusts corresponding as nearly as may be with the trusts affecting the property in respect of which it was payable. (4) Any insurance money, or any part thereof, may be applied by the trustee, or, if in Court, under the direction of the Court, in rebuilding, reinstating, replacing or repairing the property lost or damaged; but any such application by the trustee shall be subject to the consent of any person whose consent is required by the instrument (if any) creating the trust to the investment of money subject to the trust. (5) Nothing in this section affects the right of any person to require any insurance money or any part thereof to be applied in rebuilding, reinstating or repairing the property lost or damaged, or the rights of any mortgagee, lessor or lessee, whether under any statute or otherwise. (6) This section applies to policies effected either before or after the commencement of this Act, but only to money received after that commencement.