Loss Payable

LOSS PAYABLE #

It is hereby noted and agreed that :

1. in the event of actual or constructive or compromised total loss to the subject matter insured, the proceeds of insurance shall be paid to ……………….. (lessor) and all losses other than actual or constructive or compromised total loss shall be payable to ………….. (lessee) unless and until the lessee shall be in default under the remaining lease agreement, and the insurer shall have been notified by the lessor, then such loss will be compensated to the lessor.
2. in the event of non-payment of premium and lessee undertake not to exercise any right of cancellation which they may have without giving ……………….. days prior written notice of such cancellation to the lessor and an opportunity of paying any balance of such premium which may be in default.