Where there is a mortgage of a single family residence securing a loan and where there are no federal regulations to the contrary, the mortgagor may require the proceeds of any insurance policy, which are payable by reason of damage to or destruction of the mortgaged property and which would otherwise be payable to the mortgagee, to be held jointly by the mortgagor and the mortgagee in an escrow account and to be applied toward the repair or replacement of the damaged property. Provided that it shall first be reasonably established to the satisfaction of the mortgagee that such repair or replacement will restore the mortgaged property to a value at least equal to the balance remaining on the obligation, at the time the damage or destruction occurred, secured by the mortgage.
History: 1953 Comp., § 61-7-10, enacted by Laws 1975, ch. 184, § 1.
ANNOTATIONSAm. Jur. 2d, A.L.R. and C.J.S. references. — 54A Am. Jur. 2d Mortgages §§ 65 et seq., 83 et seq.; 55 Am. Jur. 2d Mortgages § 1177.
Right of mortgagee to proceeds of property insurance payable to owner not bound to carry insurance for former's benefit, 9 A.L.R.2d 299.
Fraud, false swearing or other misconduct of insured as affecting right of innocent mortgagee or loss payee to recover on property insurance, 24 A.L.R.3d 435.
Right of mortgagee to notice by insurer of expiration of fire insurance policy, 60 A.L.R.3d 164.
Failure to keep up insurance as justifying foreclosure under acceleration provision in mortgage or deed of trust, 69 A.L.R.3d 774.
Right of mortgagee, who acquires title to mortgaged premises in satisfaction of mortgage, to recover, under fire insurance policy covering him as "mortgagee," for loss or injury to property thereafter damaged or destroyed by fire, 19 A.L.R.4th 778.
59 C.J.S. Mortgages §§ 175 to 177, 203, 210, 240, 368.