Making Sense Out of Insurance, Condemnation, and Settlement Clauses in Deeds of Trust
3 Pages Posted: 22 Mar 2011
Date Written: May 1, 2003
This article discusses a California case that held that moneys received by trustors in settlement of their damage claims against a contractor need not be turned over to their lender pursuant to their deed of trust, but concludes that other court are not likely to agree with the holding that "owed" means "amounts currently due and payable" instead of principal balance, and that lenders will probably revise their forms to escape that reasoning.
Keywords: Owed, damage claim settlement, deed of trust, debt, insurance proceeds, condemnation awards, litigation awards, litigation settlement, Kasdan, Simonds, McIntyre, Epstein & Martin v World Sav. & Loan Ass’n, In re Emery
JEL Classification: K11
Suggested Citation: Suggested Citation