501.04E

Commercial Auto Liability Insurance

Requirements

You must ensure the BorrowerBorrowerPerson who is the obligor per the Note. has commercial auto liability insurance that:

  • covers any motor vehicles that are:
    • owned, leased, or hired by the BorrowerBorrowerPerson who is the obligor per the Note. ; or
    • used by anyone for business on behalf of the BorrowerBorrowerPerson who is the obligor per the Note. or the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ;
  • includes personal injury protection required by the Property'sProperty'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). state; and
  • has coverage equaling the greater of
    • $1 million per occurrence, or
    • any underlying limit required by the excess/umbrella insurance carrier.

Guidance

As a secured real estate lender, you would not be named in a lawsuit alleging automobile negligence by an employee of the BorrowerBorrowerPerson who is the obligor per the Note. or management company.  However, if a lawsuit involving negligence is successful, failure to maintain adequate insurance may result in a lien against the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .