Warranties & Indemnities

Type of approach:
  • Title to Property and Title to Shares Policy;
  • Fundamental W&I from ground up;
  • Top up for Fundamental W&I;
  • Defined Risks Coverage extended to breach of Fundamental Warranties.
•
Ownership of shares

üAuthority (of seller) to act
üCapacity to act

Incorporation of the target

Title to assets (in form of ownership, RPU, tenancy / lease hold)

Insolvency warranty

No litigation

Leasing and tenancy schedule

Permitting

•Owner’s Policy (seller or buyer assured)
üGood title
üDefined risks

•Lender’s options
üAssignment of Owner’s policy to Lender (rights and obligations)
üLender as the First Loss Payee (rights only, privilege of first satisfaction)
üSeparate Lender’s policy (Good title or Defined risks)

•Lender’s Policy
üDefined risk: default under the loan
üIndemnity paid before the proceedings are over
üInsurer steps into the rights of the lender after payment of indemnity

•W&I Policy
üGround- up: Insurer wording

üTop-up: Primary Insurer wording
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