When we have a loan secured by the building and a General Security Agreement (all assets) but the borrower is a real estate holding company so there are no insurable contents in the building as they lease the building to other businesses - do we just document that fact to show why we did not require contents coverage or do we still need to have the borrower obtain contents coverage and if so, how would we determine the amount? The Security Agreement for all assets was done as a general practice and if the loan would go bad, we would hopefully be able to have some value in their receivables.

Just document it. If they are leasing the building, the borrower owns none of the contents.

Thanks Randy! One additional question, do we only need to review their assets at time of renewal or making a new loan going forward or should this be monitored on a periodic basis such as annually after we receive their financials? My gut tells me only if we are making, increasing, renewing, or extending a loan so we wouldn't need to review more often but am afraid of what examiners opinion will be on this one.

Unless something comes to your attention that suggests they have placed assets that would be insurable under content coverage in the building, I don't think there is any requirement for on-going monitoring.