Common use of Effective Date of Insurance Clause in Contracts

Effective Date of Insurance. If there are insurable buildings located on the property, the borrower will arrange with his agent or company to have xxx- xxxxx insurance in force at the time the loan, assumption, or credit sale is closed so that the policy will properly insure the borrower and the mortga- gees. When new buildings are erected or major improvements are made to ex- isting buildings, such insurance will be made effective as of the date materials are delivered to the property. The County Supervisor will make no pay- ments from loan funds for labor or ma- terials until the borrower has furnished adequate insurance to protect the in- terest of the Agency in the buildings being erected or improved.