Burr Alert: Insurance Issues in Secured Lending

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In secured lending transactions, a lender must take several steps to protect its interests, and requiring a borrower to properly insure the lender's collateral is one of those steps. In doing so, the lender seeks to preserve the value of borrower's assets in order to protect the borrower's stream of income and thus the Borrower's ability to repay the loan. Below you will find a brief overview of some insurance issues in secured lending transactions and a few issues that arise when lenders attempt to adequately protect their interests.

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