Common use of Binders Clause in Contracts

Binders. When the CITY is acquiring property with the knowledge that it will be reselling the subject property within three (3) years of the date of acquisition, the CITY can request the issuance of a Binder which will act as a commitment to insure the resale of the property. The additional charge for a Binder is 10% of the basic rate shown in Exhibit B, in addition to the premium set forth in Section IV above. At the time of the resale, the CITY would only be charged for any increase in the liability of the ultimate policy at the rates shown in Section IV above. The additional liability fee would be calculated by computing the 70% rate paid at the ultimate resale less the compute rate paid for the policy at the time of acquisition.