Common use of Mortgage Clause Clause in Contracts

Mortgage Clause. a. If a mortgagee is named on the “declarations”, a loss payable under Coverage A or Coverage B will be paid to the mortgagee and “you”, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. The word mortgagee includes trustee. b. If “we” deny “your” claim, that denial does not apply to a valid claim of the mortgagee if the mortgagee has: 1) notified “us” of change in ownership, occupancy, or substantial change in risk of which the mortgagee became aware; 2) paid the premium due under this policy on demand if “you” neglected to pay the premium; and 3) submitted a signed, sworn proof of loss within 60 days after receiving notice from “us” if “you” failed to do so. All “terms” of this policy apply to the mortgagee unless changed by this clause. c. If “we” cancel or do not renew this policy, “we” will notify the mortgagees named on the “declarations” at least ten days before the date cancellation or nonrenewal takes effect. d. If “we” pay the mortgagee for a loss and deny payment to “you”, “we” are subrogated, up to the amount “we” paid for the loss, to all the rights of the mortgagee granted under the mortgage on the property. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee’s claim. At “our” option, “we” may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, “we” shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.

Mortgage Clause. a. If a mortgagee is named on the “declarations”, a loss payable under Coverage A or Coverage B will be paid to the mortgagee and “you”, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. The word mortgagee includes trustee. b. If “we” deny “your” claim, that denial does not apply to a valid claim of the mortgagee if the mortgagee has: 1) notified “us” of change in ownership, occupancy, or substantial change in risk of which the mortgagee became aware; 2) paid the premium due under this policy on demand if “you” neglected to pay the premium; and 3) submitted a signed, sworn proof of loss within 60 days after receiving notice from “us” if “you” failed to do so. All “terms” of this policy apply to the mortgagee unless changed by this clause. c. If “we” cancel or do not renew this policy, “we” will notify the mortgagees named on the “declarations” at least ten days before the date cancellation or nonrenewal takes effect. d. If “we” pay the mortgagee for a loss and deny payment to “you”, “we” are subrogated, up to the amount “we” paid for the loss, to all the rights of the mortgagee granted under the mortgage on the property. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee’s claim. At “our” option, “we” may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, “we” shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.