mortgage loss clause
mortgage-loss clause. A mortgage clause providing that title insurance will not be invalidated by the mortgagor’s acts. • Thus, even if the mortgagor does an act that would otherwise make the policy void, the act merely voids the policy as against the mortgagor, but it remains in full force for the benefit of the mortgagee. — Also termed New York standard clause; union-loss clause. Cf. open mortgage clause under MORTGAGE CLAUSE. [Cases: Mortgages 201. C.J.S. Mortgages §§ 311–314.]
