Icewindblue
New Member
Hello all, I'm in the process of financing an offshore aluminum boat. My bank has offered me a really good rate, but they have had some odd requests, like requesting a survey on a brand new boat, and not understanding the trade in the deal, but we've managed to get around them so far.
The latest, however, is to insist on a "Registered Chattel mortgage over sailboat," payable to the bank, "to protect the bank's interest," in place for the life of the loan. I fully intend to have this boat fully insured on my own, but payable to me to cover the usual theft, damage, fire, sinking, etc.
Has anyone heard of such a thing? Are they out to lunch? Are they trying to avoid financing this loan at a low rate? I am also afraid that an insurance company will refuse to have double coverage on a boat - ie have to pay out twice if it is a write off in some way. Also, if I have to pay for double coverage, it will largely erase any benefit of the low rate.
The latest, however, is to insist on a "Registered Chattel mortgage over sailboat," payable to the bank, "to protect the bank's interest," in place for the life of the loan. I fully intend to have this boat fully insured on my own, but payable to me to cover the usual theft, damage, fire, sinking, etc.
Has anyone heard of such a thing? Are they out to lunch? Are they trying to avoid financing this loan at a low rate? I am also afraid that an insurance company will refuse to have double coverage on a boat - ie have to pay out twice if it is a write off in some way. Also, if I have to pay for double coverage, it will largely erase any benefit of the low rate.