Queensland Property Law Act 2023 121-123: Insurance of mortgaged property, application of insurance money, receivers

What does 121-123 require?

The mortgagee may not insure the property for more than the amount the mortgage states or, otherwise, the lesser of the full insurable value of the buildings and the amount secured, and premiums are recoverable as the section allows (section 121). Insurance money is applied towards reinstatement at the mortgagee's election, or at the mortgagor's election only where the mortgage expressly allows or the mortgagee agrees (section 122). A mortgagee entitled to possession may appoint an appropriately qualified receiver in the approved form; the receiver is the mortgagor's agent, may take possession and must apply money received in the order section 123 provides.