Common use of Protection of Lender’s Interest Clause in Contracts

Protection of Lender’s Interest. 8.13.1. Borrower shall cause its insurance carrier to agree: (a) to provide Lender 30 days written notice (10 days prior written notice for nonpayment of premium) prior to any cancellation, termination or nonrenewal of the required insurance; (b) to allow Lender to pay premiums to continue the policy upon notice of cancellation for nonpayment. 8.13.2. Every Property Insurance policy shall by its terms remain valid and insure Lender’s interest regardless of any: (a) Named insured’s act, failure to act, negligence, or violation of warranties, declarations, or conditions; (b) Occupancy of use of the Property for purposes more hazardous than those permitted; or (c) Exercise of any Lender’s remedies. If Lender reasonably deems itself insecure, on Lender’s request, Borrower will be required to make monthly deposits for insurance premiums equal to one-twelfth (1/12) of the annual charges as estimated by Lender to accumulate with Lender sufficient funds to pay the insurance premiums thirty (30) days prior to their due date, such deposits to be held by Lender without interest.