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#2179854 - 05/25/18 05:23 PM UCC and Cross-Default - need help
JAM Offline
100 Club
Joined: Aug 2005
Posts: 215
We have a RE secured commercial loan that requires (and has) flood insurance. We want to make a new loan for the purpose of putting in a new well. We want to secure the new loan with a blanket UCC on all equipment. The new loan will be cross-defaulted to the current RE secured flood loan. Does this somehow trigger the need for contents flood coverage due to the cross-default?

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Flood Compliance
#2179857 - 05/25/18 05:37 PM Re: UCC and Cross-Default - need help JAM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,363
Galveston, TX
Cross default or cross-collateralization - two different things.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2179859 - 05/25/18 05:48 PM Re: UCC and Cross-Default - need help rlcarey
JAM Offline
100 Club
Joined: Aug 2005
Posts: 215
Cross Default

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#2179860 - 05/25/18 05:50 PM Re: UCC and Cross-Default - need help JAM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,363
Galveston, TX
Flood insurance on contents is only required when a single loan is secured by the building and contents.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2179864 - 05/25/18 06:03 PM Re: UCC and Cross-Default - need help JAM
JAM Offline
100 Club
Joined: Aug 2005
Posts: 215
Great, thanks for help!

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