UCC Insurance Clause Samples
The UCC Insurance clause establishes requirements for obtaining insurance coverage to protect interests under the Uniform Commercial Code (UCC), typically in the context of secured transactions. This clause often mandates that a borrower or debtor maintain specific types and amounts of insurance, such as property or casualty insurance, naming the secured party as a loss payee or additional insured. Its core practical function is to safeguard the secured party’s collateral against loss or damage, thereby reducing financial risk and ensuring that the lender’s interests are protected in the event of unforeseen incidents.
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UCC Insurance. Lender shall have received a UCC title insurance policy (the “UCC Article 9 Policy”) issued by a title insurance company acceptable to Lender in its sole discretion and dated as of the Closing Date: (a) providing coverage in the amount of the Loan; (b) insuring Lender that the Pledge Agreement and the documents executed and delivered in connection therewith create valid and perfected Liens on the Pledge Collateral of the requisite priority, free and clear of all exceptions from coverage other than standard exceptions and exclusions from coverage (as modified by the terms of any endorsements); (c) containing such endorsements and affirmative coverages as Lender may reasonably request; and (d) naming Lender as the insured. The UCC Article 9 Policy shall be assignable by Lender. Lender also shall have received evidence that all premiums in respect of such UCC Article 9 Policy have been paid by the Borrower Parties.
UCC Insurance. Lender shall have received a UCC insurance policy (the “UCC Insurance Policy”) issued by the Title Company and dated as of the Closing Date, which UCC Insurance Policy shall (i) provide coverage in an amount equal to the original principal amount of the Loan, (ii) insure Lender that the Pledge Agreement and the documents executed and delivered in connection therewith create a valid first priority lien on the Pledged Collateral, free and clear of all exceptions from coverage and subject only to the standard exceptions and exclusions from coverage, as modified by the terms of any endorsements, as shall be reasonably required by Lender, including, without limitation, coverage with respect to the validity of the lien on the Pledged Collateral and ability to exercise rights and remedies with respect thereto, (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, and (iv) name Lender and its successors and assigns as the insured. The UCC Insurance Policy shall be assignable with an assignment of the Loan. Lender also shall have received evidence that all premiums in respect of the UCC Insurance Policy have been paid.
UCC Insurance. A commitment for UCC insurance insuring the Lender’s first priority lien in the membership interests of the Borrower pursuant to the Pledge.
UCC Insurance. Lender shall have received one or more UCC “Eagle-9” title insurance policies insuring the equity pledges of the Loan Documents, subject only to usual and customary permitted exceptions and other exceptions reasonably approved by Lender, and a copy of the owner’s title insurance policy for each non-mortgaged Property, with a mezzanine endorsement or the equivalent in favor of Lender if available (except that Borrower shall not be required to purchase new or updated owners’ policies).
UCC Insurance. A policy of insurance insuring the priority of Lender’s security interests in the Collateral as senior to all other security interests in the Collateral in an amount not less than the aggregate amount of the Loans with only such exceptions as are acceptable to Lender and with such endorsements as Lender shall require (the “UCC Policy”);
UCC Insurance. Administrative Agent shall have received the UCC Policy, which shall be dated as of the Closing Date. The UCC Policy shall (a) provide coverage in the amount of the Loan, (b) insure Administrative Agent and Lender that the Pledge Agreement creates a valid first priority Lien on the Collateral, in each case free and clear of all exceptions from coverage other than the Permitted Encumbrances, and (c) name Administrative Agent (for the benefit of Lender) as the insured. Administrative Agent shall have received evidence that all premiums in respect of the UCC Policy have been paid.
UCC Insurance. On the Loan Closing Date, Borrower shall furnish Lender with a fully paid UCC Policy written in the full Loan amount in form and substance satisfactory to Lender and written by Title (or First American Title Insurance Company) insuring title to the Collateral is vested in Borrower, free from all Liens, naming Lender as the insured and insuring that the security interest of the Lender in the Collateral is a valid, perfected first security interest.
UCC Insurance. A UCC Plus policy of insurance in the amount of the Loan issued by Fidelity National Title Insurance Company.
UCC Insurance. The Borrower’s security interest in the Equity Interests of the Property Owner is covered by a UCC 9 insurance policy and: (i) such policy is in full force and effect, (ii) all premiums thereon have been paid, (iii) no claims have been made by or on behalf of the Borrower thereunder, and (iv) no claims have been paid thereunder. The Borrower obtained a mezzanine endorsement to the Property Owner’s “owner’s” title policy and an assignment of title proceeds in connection therewith.
UCC Insurance. Lender shall have received a UCC Insurance Policy issued by a Title Company and dated as of the Closing Date acceptable to Lender. Such UCC Insurance Policy shall (i) provide coverage in the amount of the Loan, (ii) insure Lender that the Mortgages create a valid lien on the Collateral of the requisite priority, free and clear of all exceptions from coverage other than Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, and (iv) name Lender as the insured. The UCC Insurance Policy shall be assignable. Lender also shall have received evidence that all premiums in respect of such UCC Insurance Policy have been paid (or will be paid with a portion of the Loan proceeds).