Legends Environmental Insurance Services, LLC./ Secured Creditor

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Secured Creditor Impaired Property Policy Overview:

Lending institutions can now approach commercial real estate lending confidently,
without fear of environmental liability, with the Secured Creditor Impaired Property
Policy. A policy specifically designed to protect the lender from financial loss due
to defaults accompanied by environmental conditions.

The Secured Creditor Impaired Property Policy was developed with the demands
of the commercial lender in mind. The policy's structure and versatile characteristics
allow it to adapt to the specific needs of a variety of lending institutions accommodating
varying lending practices and market strategies. Lenders benefit from using insurance
as a mechanism to address environmental liability because efficiencies are achieved in
the credit review and loan approval process. This is true for single site transactions,
portfolios and securitization. Now, holding true to its principles, the Secured Creditor
Impaired Property Policy has been modified to offer broader coverage, more options,
and can be more easily customized to mend a lender's coverage needs.

Customer profile:

Large Commercial Banks
Community Banks
Capital Market Lenders
Investment firms
Specialty Lenders
Insurance Companies

Benefits:

Secured Creditor pays the outstanding loan balance when a default occurs and an
environmental condition exists. The loan balance only coverage benefits lenders as
it protects them against their primary exposure and liability concern while eliminating
the need to manage defaults. Until now, default was limited to nonpayment of a loan;
however in to provide maximum coverage to banks, the Secured Creditor Impaired
Property Policy has broadened this definition to include "technical" defaults - the
violation of any provision of the loan agreement which causes the loan to default
Secured Creditor has been utilized in large securitizations and has been looked upon
favorably by the rating agencies. In most cases this method of environmental liability
protection has improved the credit rating Pursuing borrowers for recovery of losses
when they default on a loan can jeopardize the status of additional loans that the
borrower may have with the bank - often making a bad situation worse. Secured
Creditor Impaired Property Policy waives all rights of subrogation against the borrower
except the right of foreclosure (meaning the insurer will not pursue the borrower for
recovery of losses) thereby protecting the bank and aiding in the prevention of additional
defaults. Some insurance policies behave as a secondary coverage - assisting only after
other policies have taken effect. Secured Creditor Impaired Property Policy responds
immediately in the event of a loss - acting as a primary source of protection

Features:

Coverage A, for loss arising from a default accompanied by an environmental
condition on a commercial real state loan secured by an insured property, the policy
will pay the outstanding loan balance. As another alternative, by endorsement,
Coverage A can pay the lesser of the outstanding loan balance or cleanup costs.
Coverage B responds to legal obligations and claims for third-party bodily injury,
third-party property damage and clean-up costs resulting from on- and off-site
pollution conditions at insured properties. Coverage C, which protects the bank
after foreclosure, responds to clean-up of on-site pollution conditions at insured
properties. Fast turn around - while a environmental site assessment can take 3-4
weeks, approval for Secured Creditor insurance will take no longer than 5 business
days.
Policy terms of up to 20 years.
Can act as an alternative for environmental site assessment.
Can be used to support securitization of loan pools.
Loss has been expanded to include accrued interest from date of
default, interest on advances and advances for property protection.
Natural resource damages are defined and covered in the definition
of property damage.
45-day loss reporting requirements.
Policies are available for single site transactions, securitizations
and portfolios.

Submission Requirements:

Secured Creditor Application - Single Site or Portfolio Application

Products Minimum/Maximum

LIMIT PER OCCURRENCE $100,000,000

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