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#2214421 - 05/28/19 04:21 PM Rental Construction Loan includes UCC
Likes to Comply Offline
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Joined: Nov 2008
Posts: 1,061
In the mountains
We are originating a construction loan for 1-4 family rental. We will be taking a UCC on FF&E, construction materials, etc. The customer's insurance company is saying they can write a building policy upfront but they cannot write a contents policy at this point. Does this sound correct?

Thanks in advance.
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#2214422 - 05/28/19 04:25 PM Re: Rental Construction Loan includes UCC Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,893
Galveston, TX
Sounds correct. You have to have a building to have contents, do you not? I really have never understood what a UCC on a construction loan really buys you over your DOT and construction loan agreement. You don't advance unless materials have been installed - correct??
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