Common use of Loan Related Insurance Clause in Contracts

Loan Related Insurance. On the Closing Date, (a) the Initial Member shall cause to be assigned, to the extent assignable, all existing insurance policies in respect of the Underlying Collateral for each Loan; (b) the Company shall be responsible for having itself substituted as loss payee on all Loan related insurance in which any Failed Bank or the Initial Member is currently listed as a loss payee; and (c) the Company shall cause to be put into place such insurance for the Underlying Collateral with respect to each Loan with respect to which the Borrower has failed to maintain required insurance, fire, hurricane, flood and hazard insurance with extended coverage as is customary in the area in which the Underlying Collateral is located and in such amounts and with such deductibles as, in the reasonable judgment of the Company, are prudent. Upon the cancellation after the Cut-Off Date of any insurance policy maintained by the Initial Member or any Failed Bank with respect to any Loan and the receipt by the Company or the Initial Member of any refund of any premiums previously paid with respect thereto, such refunded amount shall inure to the benefit of the Borrowers with respect to the affected Loans, and such refunded amount shall be remitted to (or retained by) the Company and applied as appropriate to adjust the Escrow Accounts, if any, or other records with respect to such affected Loans.