As a lender, chattel operations coverage may be one of the most important things you learn about.
By carrying chattel operations coverage your credit union can promote sound lending practices, provide protection to your credit union, and save time to allow you to focus on serving your members.
Chattel Filing Errors and Omissions Coverage
Protects your credit union’s financial interest if you are unable to gain possession of the property pledged to secure a loan as a result of an accidental error or omission made on the filing of the document.
The Omissions portion of this coverage protects against failure in your credit union’s customary procedure to properly file the security agreement with the registry office in the jurisdiction of the debtor’s residence.
Chattel Operations Non-Filing Coverage
Protects your credit union’s financial interest if you are unable to repossess property pledged as security on a loan as a result of the intentional decision not to file the Security Agreement with the registry office. Non-filing coverage automatically extends Filing Errors coverage to loans the credit union chooses to register.
Contingent Coverage for Debtor Relocation
(extension to the Filing Errors and Omissions; or Non-Filing Coverage)
Provides coverage if, without your knowledge, the chattel is sold or registered within another jurisdiction and you can no longer enforce the security agreement.
Chattel Impairment Coverage
Protects your credit union from financial loss caused by the failure of a member to maintain insurance or adequate insurance to cover your credit union’s chattel mortgage interest.
Repossessed Chattel Coverage
Protects your credit union against all risks of direct physical loss or damage to a chattel after taking physical possession.