The EAGLE Protection Vessel Loan Policy insures the validity and enforceability of your security interest in vessels documented with the U.S. Coast Guard. The EAGLE policy also insures the priority of that interest. It includes valuable coverages never before offered to the marine lending community.
The EAGLE Protection Vessel Loan Policy provides protection when any of these situations occur:
Ownership Disputes
The loan policy insures that your borrower is the owner of the vessel. This means that you are protected against anyone else claiming an interest in the vessel which could defeat your security interest, whether or not that claimant has a recorded interest.
Document Forgery
Coverage is provided when your lien is impaired by a forgery occurring anywhere in the chain of vessel ownership to the vessel or in your preferred mortgage.
Fraud or Duress
Similar to forgery, this coverage protects you in the event that any transfer document in the chain of vessel ownership is challenged because it was obtained by fraud, undue influence or duress.
Incompetence or Incapacity
Coverage is provided when your preferred mortgage or any document transferring ownership is challenged because it was signed by a person legally incapable of completing the transaction because of age, incapacity or lack of partnership, corporate or trust authority.
Defective Filing or Recording of Documents
This coverage protects you against defects in any recorded document necessary to establish your mortgage on the vessel and your borrower's ownership of the vessel.
Post-Policy Forgery
Unfortunately, it happens. Occasionally, unscrupulous persons will attempt to falsify a release of an unsatisfied mortgage. If this should happen, we will cover losses to you, including the cost to restore your lien to the record.
Unrecorded State Tax Liens (up to $2,500)
Coverage for up to $2,500 is provided against state tax liens which do not appear in the Coast Guard records. Such off-record liens may be enforced against the vessel if it enters the taxing state.
Labor or Material Liens
We will protect your interest when statutory liens are claimed for necessaries, as long as your borrower was in possession at policy date.
Preferred Status
Coverage is provided against claims that your mortgage is not a preferred mortgage as defined under U.S. maritime law.
Invalidity or Unenforceability of Your Lien
You are protected against claims that your lien has not been properly signed, delivered, recorded, or is otherwise invalid or unenforceable.
Priority of Your Lien
This coverage protects you from the interest of other lien holders who claim priority over your mortgage.
Engines and Appurtenant Equipment
Coverage is provided against prior liens and encumbrances on the vessel's engines and appurtenant equipment installed on a covered vessel at the time the policy is issued.
Estate or Inheritance Tax Liens
You are protected against estate or inheritance tax liens which are not filed in the U.S. Coast Guard records, but which can nevertheless be enforced against the vessel by the IRS and/or state taxing agencies to defeat your lien.
|
