Blanket Lien vs. UCC Filing

Posted By: SallyGirl

Blanket Lien vs. UCC Filing - 04/02/21 04:25 PM

For a commercial real estate loan, does a blanket lien invoke contents coverage or is it when a UCC is filed including fixtures? Or, is contents coverage only required when the loan collateral includes personal property in addition to the building?
Posted By: rlcarey

Re: Blanket Lien vs. UCC Filing - 04/02/21 04:52 PM

Content coverage is only required when your loan is secured by both the building and contents. Whether not a specific security interest reaches insurable contents under an NFIP policy is a question for your legal counsel.
Posted By: SallyGirl

Re: Blanket Lien vs. UCC Filing - 04/02/21 05:24 PM

So under the FDPA, contents coverage is required only when the security agreement includes personal property as collateral regardless of whether there is a UCC-1 Filing?
Posted By: rlcarey

Re: Blanket Lien vs. UCC Filing - 04/02/21 05:42 PM

Flood FAQ.

39. Is flood insurance required if a building and its contents both secure a loan, and the building is located in an SFHA in which flood insurance is available?

Answer: Yes. Flood insurance is required for the building located in the SFHA and any contents stored in that building.

https://www.bankersonline.com/sites/default/files/tools/flood_faq_2011_10_17.pdf

Whether your lien is perfected (i.e., a UCC-1) is irrelevant.
Posted By: SallyGirl

Re: Blanket Lien vs. UCC Filing - 04/02/21 07:48 PM

Thank you!