BANK INTEREST CLAUSE #

It is hereby noted and agreed that the property insured under this policy has been pledged with BANK ………………… of …………… and until such time as the said Bank shall have notified the Insurer in writing to the contrary, the Insurer shall advise the said Bank :

1.  if he or it proposes to  cancel or give notice of cancellation of any such insurance, at least 30 days before such cancellation is to take effect;
2.  of :
   1. any material alteration; and
   2. termination or expiry of any such insurance at least 30 days before such alteration, termination or expiry;
3. promptly of any default in the payment of any premium or failure to renew any such insurance;
4. of any act or omission or of any event of which the Insurer has knowledge and which he or it considers might invalidate or render unenforceable in  whole or in part any such insurance; and
5. of any claim under the policy exceeding US$ 10,000.-

It shall be further noted that in the event of loss, if any, payable under this policy, any payment up to the amount to which the said Bank is entitled for principal, interest accrued and  costs shall be made to the said Bank without prejudice to the rights of the Insured for the difference and the said Bank shall act in its capacity as joint-insured subject to the terms conditions and restrictions contained in the policy.