standard mortgage clause
- A part of a mortgage contract between the mortgagee and insurer that permits the mortgagee to secure reimbursement even when the insurance policy is rendered null and void toward the insured, such as due to fraud or nonpayment
- The bank insisted on including a standard mortgage clause in the contract to ensure they'd get their money even if the insurance policy becomes null.
- The standard mortgage clause incorporated in their loan contract provides a safety net for lenders in case the borrower's insurance policy is voided.
- As the loan was sizable, the lender integrated a standard mortgage clause as a safeguard against possible fraud or insurance default.
Provide Feedback
