Loss Drafts Clause Samples

The Loss Drafts clause outlines the procedures for handling insurance payments (drafts) issued for property damage or loss. Typically, when an insured property suffers damage, the insurance company issues a payment to cover repairs, but this payment may be made jointly to the property owner and the lender or mortgagee. The clause specifies how these funds are to be endorsed, released, or applied—often requiring lender approval before disbursement to ensure repairs are completed. Its core function is to protect the lender’s interest in the property by ensuring insurance proceeds are used appropriately to restore the property or pay down the loan, thereby mitigating the risk of unrepaired collateral.
Loss Drafts o Seller shall provide Purchaser a listing of all loans with a loss draft pending with corresponding file. o Proceeds remaining in a restricted account shall be forwarded to and be supported by a loan level trial balance. Seller is responsible for any interest payable on loss draft funds required by state and/or investor regulations prior to Transfer Date.
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Loss Drafts. Seller has provided sufficient data to Purchaser to enable the preparation of the following reports: 1. Listing of all loans having a loss draft pending 2. Loss draft files for each loan which contains for the following information: • Date of loss • Cause of loss • Amount of loss • Amount of insurance proceeds received to date • Amount of insurance proceeds released to customer to date • Number of outstanding claims and total dollar amount of claim dollars held • Information received from contractors or record of conversation with contractors Correspondent from and/or record of conversation with borrowers and insurance companies • Status report on repairs • Inspection reports, if any • Report on receipt of future proceeds, if expected • Record of any special consideration agreed upon with customer prior to transfer • Check payable to Chase Manhattan Mortgage Corporation representing monies in a restricted field for loss drafts with a detailed listing by loan number, showing how the funds are to be applied
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Related to Loss Drafts

  • Dishonored Checks The Transfer Agent may receive any fees reasonably related to the cost incurred by the Transfer Agent when a shareholder purchases shares by check and the purchase is subsequently canceled because the check was dishonored by the shareholder’s bank.

  • Checks, Drafts, etc All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the Company, shall be signed or endorsed by such person or persons and in such manner as shall be determined from time to time by resolution of the Board.

  • The Drawings The Drawings are the graphic and pictorial portions of the Contract Documents showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules and diagrams.

  • DRAFT ▪ Grade the road surface, turnouts, and shoulders to the original shape on the TYPICAL SECTION SHEET to provide a smooth, rut‐free traveled surface and maintain surface water runoff in an even, unconcentrated manner. ▪ Blading shall not undercut the backslope or cut into geotextile fabric on the road. ▪ If required by the Contract Administrator, water shall be applied as necessary to control dust and retain fine surface rock. ▪ Surface material shall not be bladed off the roadway. Replace surface material when lost or worn away, or as directed by the Contract Administrator. ▪ Remove shoulder berms, created by grading, to facilitate drainage, except as marked or directed by the Contract Administrator. ▪ For roads with geotextile fabric: spread surface aggregate to fill in soft spots and wheel ruts (barrel spread) to prevent damage to the geotextile fabric.

  • Payment of Checks, Drafts and Orders Subject to Section 9.5, the Assuming Institution agrees to pay all properly drawn checks, drafts and withdrawal orders of depositors of the Failed Bank presented for payment, whether drawn on the check or draft forms provided by the Failed Bank or by the Assuming Institution, to the extent that the Deposit balances to the credit of the respective makers or drawers assumed by the Assuming Institution under this Agreement are sufficient to permit the payment thereof, and in all other respects to discharge, in the usual course of conducting a banking business, the duties and obligations of the Failed Bank with respect to the Deposit balances due and owing to the depositors of the Failed Bank assumed by the Assuming Institution under this Agreement.