Australian Capital Territory Current Acts Australian Capital Territory Current Acts(1) If a mortgage insurance policy is in force for a unit, the insurer is liable to pay to a mortgagee whose interest is noted on the policy the least of the following amounts:
(a) the amount insured as stated in the policy;
(b) the amount of the loss;
(c) the amount sufficient, at the date of the loss, to discharge the mortgage noted on the policy.
(2) If the interests of 2 or more mortgagees are noted on the policy, subsection (1) applies to the mortgagees in their order of registered priority.