mortgage clause

mortgage clause. An insurance-policy provision that protects the rights of a mortgagee when the insured property is subject to a mortgage. • Such a clause usu. provides that any insurance proceeds must be allocated between the named insured and the mortgagee “as their interests may appear.”

— Also termed mortgagee clause. See LOSS-PAYABLE CLAUSE; ATIMA. [Cases: Mortgages 201. C.J.S. Mortgages §§ 311–314.]

open mortgage clause. A mortgage clause that does not protect the mortgagee if the insured mortgagor does something to invalidate the policy (such as committing fraud). • This type of clause has been largely superseded by the mortgage-loss clause, which affords the mortgagee more protection.

— Also termed simple mortgage clause. Cf. MORTGAGE-LOSS CLAUSE.

standard mortgage clause. A mortgage clause that protects the mortgagee’s interest even if the insured mortgagor does something to invalidate the policy. • In effect, this clause creates a separate contract between the insurer and the mortgagee.

— Also termed union mortgage clause.

MORTGAGE COMMITMENT

mortgage commitment. A lender’s written agreement with a borrower stating the terms on which it will lend money for the purchase of specified real property, usu. with a time limitation. [Cases: Mortgages 211. C.J.S. Mortgages §§ 274–276.]

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词条贡献者

法律翻译Jessie，在一家亚洲一流律师事务所的北京办公室担任全职法律翻译，擅长翻译有关港口、铁路、公路与海运的法律文件。