Posted By: mdog76
Flood Insurance on a Negative Pledge Agreement - 07/12/12 12:58 PM
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
Posted By: Dan Persfull
Re: Flood Insurance on a Negative Pledge Agreement - 07/12/12 01:18 PM
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.