06
May
2021
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 Thursday, May 6th, 2021 at 8:48 am and is filed under National, Secured Loans.
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