The lienholder is included as a payee to ensure that the lienholder knows of the insured loss and is satisfied that its security interest is not impaired by the loss. So, for example, if the loan is in arrears or if the property needed extensive repairs and the lienholder needed to maintain control over the insurance proceeds to ensure that the repairs are completed, then, the lienholder can refuse to endorse and surrender the check to the borrower.
If the lienholder has endorsed the check and the borrower now has control of the proceeds, the cashing of the check won't benefit the lienholder at all, so the lienholder would not be listed on the CTR, IMHO.
Last edited by John Burnett; 08/15/11 02:24 PM.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8