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#1719275 - 07/12/12 12:58 PM Flood Insurance on a Negative Pledge Agreement
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
I am new to the idea of a Negative Pledge Agreement. Our loan centralization is asking if flood insurance is required on property involved in a negative pledge agreement.

Thanks

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Flood Compliance
#1719292 - 07/12/12 01:18 PM Re: Flood Insurance on a Negative Pledge Agreement mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,025
Bloomington, IN
As I know a negative pledge agreement it is simply a contract provision that prohibits the borrower from allowing the property to incur any liens outside of yours. This contract provision has absolutely no affect on the flood insurance requirements.
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The opinions expressed are mine and they are not to be taken as legal advice.

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