Security & Collateral · glossary
The person an insurer must pay when it meets a claim. Clause 8.2 makes the Bank loss payee on the buildings and plant sections of the Company's policy, but not on business interruption. The Bank decides whether the money rebuilds or repays the loan. Debenture §8.2 · Schedule 5 · Chapter 4 · Chapter 5
Explained in Chapter 4, The Land: A Legal Mortgage, of Security & Collateral.
A loss payee is the person the insurer must pay when it meets a claim. The Bank is loss payee on the buildings and plant sections of the policy with Aldgate, the Company's insurer. Business interruption cover is left out, so that money still goes to the Company. If money for damage to the factory or machines reaches the Company instead, the Company holds it on trust for the Bank and may not use it as its own.Read Chapter 4, The Land: A Legal Mortgage →
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