Posted By: Ninky
Content coverage - commercial builder lines - 05/15/13 06:41 PM
Our attorney has removed the standard clause in our commercial real estate documents (Deed of Trust) that automatically included inventory and moveable property as collateral. This eliminated the process of having to always get flood content coverage in addition to the standard flood coverage on all commercial real estate loans. The one exception is on builder lines. Can anyone share what their practice is in this regard on their builder-line loan documentation? Are other banks automatically including inventory and moveable property in their documentation, thus automtically requiring content coverage on builder lines? Trying to determine what the industry practice is.
Thanks to anyone willing to share.
Thanks to anyone willing to share.