Lender as Loss Payee Clause Samples

The 'Lender as Loss Payee' clause designates the lender as the recipient of insurance proceeds in the event of damage or loss to the collateral securing a loan, such as real estate or equipment. In practice, this means that if the insured property suffers a covered loss, the insurance company will pay the lender directly, or jointly with the borrower, rather than the borrower alone. This arrangement protects the lender’s financial interest in the collateral by ensuring that insurance payouts are used to repair or replace the asset, or to pay down the outstanding loan balance, thereby reducing the lender’s risk of loss.
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Lender as Loss Payee. All such policies of insurance shall be in such form, with such companies, and in such amounts as may be reasonably satisfactory to Lender. All such policies of insurance (except those of public liability and property damage) shall contain a 438BFU lender’s loss payable endorsement or comparable endorsement, or an equivalent endorsement in a form satisfactory to Lender, showing Lender as additional loss payee thereof, and shall contain a waiver of warranties, and shall specify that the insurer must give at least thirty (30) days’ prior written notice to Lender before canceling its policy for any reason. Borrower shall deliver to Lender certified copies of such policies of insurance and evidence of the payment of all premiums therefor. All proceeds payable under any such policy shall be payable to Lender to be applied on account of the Obligations.
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Related to Lender as Loss Payee

  • Loss Payment We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and: 1. Reach an agreement with you; 2. There is an entry of a final judgment; or 3. There is a filing of an appraisal award with us.

  • Additional Insured Commercial General Liability, Commercial Automobile Liability, and Pollution Liability Insurance shall include the State of Washington and all authorized Purchasers (and their agents, officers, and employees) as Additional Insureds evidenced by copy of the Additional Insured Endorsement attached to the Certificate of Insurance on such insurance policies.

  • Additional Insurance Obligations Tenant shall carry and maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10 and such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord or Landlord’s lender, but in no event in excess of the amounts and types of insurance then being required by landlords of buildings comparable to and in the vicinity of the Building.

  • Additional Insurance Contractor may obtain additional insurance not required by this Contract.

  • Additional Insured Endorsement The GLO, its officers, employees, and authorized agents shall be named as additional insureds for all liability arising under this Contract except on Workers’ Compensation and Professional Liability policies. An original additional insured endorsement signed by an authorized insurance company representative must be submitted to the GLO to evidence the endorsement of the GLO as an additional insured on all policies, and the certificate(s) must reference the related GLO Contract Number.