Common use of Loss Payable Clause in Contracts

Loss Payable. a. The CSD Pool will pay the Member District and the loss payee shown in the Member District’s Equipment Breakdown Declarations for loss covered by this Equipment Breakdown Coverage, as interests may appear. The coverage of this Equipment Breakdown Coverage Document covers the interest of the loss payee unless the loss results from conversion, secretion or embezzlement on the part of the Member District or the loss payee. b. The CSD Pool may cancel the Equipment Breakdown Coverage Document as allowed by the Cancellation Condition. Cancellation ends this agreement as to the loss payee’s interest. If the CSD Pool cancels, the CSD Pool will mail the Member District and the loss payee the same advance notice. c. If the CSD Pool makes any payment to the loss payee, the CSD Pool will obtain their rights against any other party.