National CAPLines Authorization Boilerplate - SBA

Full Marine Insurance (OPTIONAL)
d. Full Marine Insurance coverage in the amount of the full insurable value on the
following vessel(s): [List of insured Vessels]; with Lender designated as
"Mortgagee". The policy must contain a Mortgagee clause providing that the interest of
Lender will not be invalidated by any: (1) act, omission, or negligence of the mortgagor,
owner, master, agent or crew of the insured vessel; (2) failure to comply with any warranty
or condition out of mortgagee’s control; or (3) change in title, ownership or management
of the vessel. The policy must include Protection and Indemnity, Breach of Warranty, and
Pollution coverage. The policy or endorsements must provide for at least 10 days' prior
written notice to Lender of policy cancellation.
SOP 50 10 5(E), pp. 209-210, Subpart “B”, Chapter 5, Paragraph II.D.
e. Life Insurance, satisfactory to Lender:
Life Insurance (OPTIONAL)
(1) on the life of [Name of Individual] in the amount of $[Amount].
(2) on the life of [Name of Individual] in the amount of $[Amount].
(3) [add more if needed]
Lender must obtain a collateral assignment of each policy with Lender as assignee, and
Lender must also obtain acknowledgment of the assignment by the Home Office of the
Insurer. Lender must assure that Borrower pays the premium on the policy.
Liability Insurance (OPTIONAL)
f. Liability Insurance in an amount and with an insurance company satisfactory to Lender.
Product Liability Insurance (OPTIONAL)
g. Product Liability Insurance in an amount and with an insurance company satisfactory to
Lender.
Dram Shop/Host Liquor Liability Insurance (OPTIONAL)
h. Dram Shop/Host Liquor Liability Insurance in an amount and with an insurance
company satisfactory to Lender.
Malpractice Insurance (OPTIONAL)
i. Malpractice Insurance in an amount and with an insurance company satisfactory to
Lender.
SOP 50 10 5(E), p. 210, Subpart “B”, Chapter 5, Paragraph II.E.
Disability Insurance (OPTIONAL)
j. Disability Insurance covering [Names of Individuals] in an amount and with an
insurance company satisfactory to Lender.
Workers’ Compensation Insurance (OPTIONAL)
k. Workers’ Compensation Insurance in an amount meeting state law requirements and
with an insurance company satisfactory to Lender.
SBA Loan Number: [Loan Number] Page 31
SBA Loan Name: [Loan Name] (CAPLines 2012)