Western Australian Consolidated Acts Western Australian Consolidated Acts (1) The amount of an
insurance effected by a mortgagee against loss or damage by fire under the
power in that behalf conferred by this Part shall not exceed the amount
specified in the mortgage deed, or, if no amount is therein specified, the
full insurable value of the buildings upon the mortgaged land or the amount
owing to the mortgagee in respect of the mortgage.
(2) An insurance shall
not, under the power conferred by this Part, be effected by a mortgagee in any
of the following cases, namely —
(a)
where there is a declaration in the mortgage deed that no insurance is
required;
(b)
where an insurance is kept up by or on behalf of the mortgagor in accordance
with the mortgage deed;
(c)
where the mortgage deed contains no stipulation respecting insurance, and an
insurance is kept up by or on behalf of the mortgagor with the consent of the
mortgagee to the amount to which the mortgagee is by this Part authorised to
insure.
(3) All money received
on an insurance of mortgaged property against loss or damage by fire or
otherwise effected under this Part or on an insurance for the maintenance of
which the mortgagor is liable under the mortgage deed, shall, unless the
mortgage deed otherwise provides, be applied by the mortgagor in making good
the loss or damage in respect of which the money is received.