TRUSTEE ACT 1925 - SECT 42 Application of insurance money
TRUSTEE ACT 1925 - SECT 42
Application of insurance money(1) Where a policy of insurance against the loss or damage of any property subject to a trust, whether by fire or otherwise, has been kept up under any trust in that behalf, or under any power (statutory or otherwise), or in performance of any obligation (statutory or otherwise), the money receivable by a trustee under the policy shall be capital money for the purposes of the trust.
(2) If the money is receivable in respect of property held upon trust for sale, the money is to be held on the trusts and subject to the powers and provisions applicable to money arising by a sale under the trust.
(3) In any other case the money 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) The money or any part of it may also be applied by the trustee or, if in court, under the direction of the Supreme Court, in rebuilding, reinstating, replacing, or repairing the property lost or damaged.
(5) An application to the Supreme Court for a direction under subsection (4) is subject to the consent of anyone whose consent is required by the trust instrument to the investment of money subject to the trust.
(6) Nothing in this section shall prejudice or affect the right of any person to require the money or any part of it to be applied in rebuilding, reinstating or repairing the property lost or damaged.
(7) Nothing in this section shall prejudice or affect the rights of any mortgagee lessor or lessee, whether under any statute or otherwise.
(8) This section applies to a trust except so far as the contrary intention appears in the trust instrument.