Legal News for Credit Union Managers Since 1990
« Foreclosure – Receiver Appointed
Mortgaged Property Kept Without Reaffirmation or Redemption »
18
Aug
2020

Collateral Insurance Proceeds to Credit Union

Here, the court held that the insurance company could not recover funds it paid to the Credit Union as an insured party on stolen collateral, even though the debtor’s insurance claim was fraudulent.

The Credit Union was not aware the claim was fraudulent when it received the funds and was, therefore, entitled to those funds. Lloyds of London v. London Limousine Service, Progressive Credit Union, et al., (U.S. Dist. Ct., S.D. New York, No. 89-0926).

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Tuesday, August 18th, 2020 at 4:33 am and is filed under National, Secured Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Nondischargeable Debt: False Financial Statement
    • Credit Union Freezes Member’s Account
    • Reaffirmation, Redemption or Surrender of Collateral
    • State Wage Garnishment Valid For Other States
    • Right of Rescission – Refinance
    • Insurance Lapse: Lift Stay & Repossess Collateral
    • Collection Letter Not Required Before Filing Suit
    • Fraudulent Check Endorsement by Borrower
    • Creditor Required to Release Lien
    • Chapter 13 Plan Cures Arrearage
    • Defective Automobile Lien Enforced

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)