Common use of EXTENT OF COVERAGE Clause in Contracts

EXTENT OF COVERAGE. In the event of a covered loss, the policy will pay the Creditor the lesser of the Actual Cash Value of the damaged or stolen Collateral as of the date of loss, the cost of repairing or replacing the damaged or stolen Collateral, or the amount of the Creditor’s impairment which is measured by the outstanding balance of the Credit Agreement as of the date of loss. The limit of liability under the policy is $50,000. The policy requires the Creditor to pay a $500 deductible.