Which of the following statements is true in the light of Section 66 of the Transfer of Property Act,…

Under Section 66 of the Transfer of Property Act, 1882 (Waste by mortgagor in possession), a mortgagor in possession of the mortgaged property is not liable to the mortgagee for allowing the property to deteriorate; but he must not commit any act which is destructive or permanently injurious thereto, if the security is insufficient or will be rendered insufficient by such act. The Explanation to Section 66 explicitly defines when a security is insufficient: “A security is insufficient within the meaning of this section unless the value of the mortgaged property exceeds by one-third, or, if consisting of buildings, exceeds by one-half, the amount for the time being due on the mortgage.”