Collateral Information. (1) When the creditor obtains collateral over immovable property, then it must: (a) Obtains a valuation of the immovable property that is carried out by a valuer who is independent of the consumer, (b) Carefully and thoroughly examines the valuation report of the property, and ensures that all factors affecting the value of the property have been adequately considered, (c) in case the collateral is a property other than the one to be financed, requires a valuation report for both properties, (d) ensures that the property is properly insured and the insurance contract is assigned to the creditor for the purpose of the credit facility, and (e) in the case of a property under construction, requires insurance coverage for all construction related risks to covering the full construction period of the project, and to be assigned to the creditor for the purpose of granting the credit. (a) When a creditor registers a floating charge over the assets of a company, it must require an insurance contract adequately covering the assets under the floating charge and must ensure that the insurance contract is assigned in favour of the creditor. (b) In case of registration of multiple floating charges by multiple creditors, the insurance contract must clearly indicate that it is assigned in favour of all creditors in direct proportion to the amounts of the relevant floating charges and in the same ranking priority as their registration. (3) In cases where personal guarantees are obtained, the creditors must collect the documents mentioned in paragraph 1(a) and (b).
Appears in 4 contracts
Samples: Credit Agreement, Credit Agreement, Credit Agreement
