Assignment of real estate insurance on a mortgage loan

1) Insurance contracts where the assignment of rights constitutes legal security for the loan repayment may be concluded with an insurance company approved by the Bank.

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2) The borrower transfers to the Bank the receivables, including future receivables from insurance contracts against fire and other random events of real estate constituting the subject of loan repayment security, including contracts that will be concluded in the future, subject to the condition resolving that in the event of repayment of all receivables resulting from the Agreement, the receivables are transferred back to the Borrower.

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3) The sum insured against fire and other fortuitous events specified in the insurance contract must be at least equal to the value of the real estate or the amount specified in the declaration of submission to enforcement, whichever is less.

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4) The borrower is obliged to inform the Bank about the occurrence of events that may constitute the basis for demanding the payment of compensation from insurance companies for the liquidation of damages arising on the property being the subject of security for the repayment of the loan, and the Bank may request the transfer to the Bank's account of funds paid by insurance companies as claims settlement. .

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5) If the sum insured has decreased as a result of the payment of compensation, the Borrower is obliged to insure the real estate additionally so that the sum insured after additional insurance meets the conditions specified in section 3.

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6) The Borrower is obliged to conclude a real estate insurance contract against fire and other random events, assign the rights resulting from this contract to the Bank and submit a proof of acknowledgment by the insurance company of the assignment of rights under the insurance contract to the Bank prior to loan disbursement / the first loan tranche or before the release of the bridging collateral.

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7) The borrower is obliged to insure the real estate throughout the loan period (continuity of insurance) and to provide the Bank with a proof of payment of the insurance premium for the next insurance period with a company approved by the Bank at the latest on the date of termination of insurance cover under the existing insurance contract and proof of acknowledgment by the insurance company of the assignment of rights under the insurance contract to the Bank.