Section 42 Mortgage and Property Law of Lagos State

Section 42 of the Mortgage and Property Law of Lagos State 2010 is about Amount and application of insurance money. It provides as follows:

(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 Law shall not exceed the amount specified in the mortgage deed, or if no amount is specified, the amount specified by regulations made by the Board in case of total destruction, to restore the property insured.

(2) An insurance shall not under the power conferred by this Law be effected by a mortgagee in any of the following cases –
(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 mortgagee deed;
(c) Where the mortgage deed contains no stipulation respecting insurance, and an assurance is kept up by or on behalf of the mortgagor with the consent of the mortgage to the amount to which the mortgagee is this law authorized to insure.

(3) All money received on an insurance of mortgaged property against loss or damage by fire or otherwise effected under this Law, or any other Law, or on an insurance for the maintenance of which the mortgagor is liable under mortgage deed, shall if the mortgagee so requires, be applied by the mortgagor to reinstate the mortgage property.

(4) Without Prejudice to any obligation to the contrary impose by law, or by special contract, a mortgagee may require that all money received on an insurance of mortgaged property against loss or damage by fire or otherwise effected under this Law or any other Law, or an insurance for the maintenance of which the mortgagor is liable under the mortgage deed, be applied in or towards the discharge of the mortgage money.

[/membership]