In this case, the seller does have first loss payable on the insurance. 

Dennis C.
Touché 35-1 #83
Mandeville, LA

Sent from my iPhone

On Mar 28, 2013, at 10:59 AM, "Randall Walford" <[email protected]> wrote:

> A trawler - or any powerboat - is probably less likely to go far from home
> than a sailboat given the costs involved. But the security of a mortgage
> assumes the asset ( boat) is tied at the dock and will be easy to seize and
> re-sell in the event of default. I wouldn't be so sure that is the case.
> Heaven help you if the new owner ships out. Due diligence would require
> looking at home ownership, jobs of borrowers, and taking collateral
> security. Being a co-insured is not good enough - you need to have 'first
> loss payable ' status on the insurance policy. 
> 
> In all cases return follows risk...there is a reason why the bank won't lend
> the buyer the $. Getting 6% is little comfort if the security moves to South
> America or heaven knows where...
> 
> Randall E. Walford MBA LL.B., Esq
>   2. Re:  Selling your old boat ([email protected])
> 
> 
> 
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