INSURANCE LETTER (draft 6/23/9) - M&T Bank

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Insurance Requirements for M&T Bank’s loan to       (the “Customer”)

Dear Sir or Madam:

In connection with your application for a loan from M&T Bank (the “Bank” or “us”), and as a condition to us making such a loan, you must arrange to provide us with evidence of the insurance coverage (as described on attached Schedule). We are sending you this letter as a guideline as to what needs to be provided to the Bank to satisfy the insurance requirements. We recommend that you promptly forward this request to your insurance provider.

Please provide us with the following:

1. Documentation of Insurance. Documentation evidencing the property and liability insurance coverage, in a form of a certificate, evidence, insurance binder or policy (any, an “Insurance Document”), which must include provisions that allow the Bank to rely on the types of insurance and coverages stated in the Insurance Document.

2. Authorized Signature. All Insurance Documents must be signed by an authorized insurance company representative.

3. Lender’s Loss Payee/Mortgagee Endorsement. The Bank’s interest, as set forth in the Insurance Document, must be the following (depending on the type of collateral):

a. When the collateral is business personal property/equipment/inventory – “Lender’s Loss Payee”.

b. When the collateral is real estate and/or business personal property/equipment affixed to real estate – “Mortgagee”.

c. When the collateral is automobiles – “Loss Payee”, and the coverage should include comprehensive, collision and liability.

d. In all cases – “Additional Insured”, for liability coverage.

4. Insured’s Name. The Insurance Document must set forth the correct legal name of the owner of the collateral (the “Insured”). An assumed name (e.g. d/b/a or T/A’s) is not acceptable.

5. Asset Location. The Insurance Document must list all locations where the Insured’s assets are located. See attached Schedule.

6. Identification of Assets. The Insurance Document must clearly identify the type of asset which is being covered by the insurance policy; for example, “business personal property/equipment” or “vehicles”. See attached Schedule for the type of assets which must be fully insured.

7. Bank Address. The Bank’s address for renewals and notices must be kept on your insurance company’s records as follows:

M&T Bank

PO Box 1358

Buffalo, New York 14240-1358

8. Successors and Assigns. The reference to the Bank must include its successors and assigns, as follows: “M&T Bank, its successors and/or assigns”.

9. Insurance Company Rating. The insurance company issuing the policy must be rated by AM Best as B+ or better.

10. Notice of Cancellation. The policy must provide that thirty (30) days prior notice of cancellation will be sent to the Bank.

11. Special Insurance Requirements and/or Endorsements. The policy must include the special endorsements or requirements listed in attached Schedule.

The form and substance of the Insurance Document must be acceptable to the Bank, in its sole discretion.

Your insurance provider should also be advised/informed that representatives from the Bank may periodically need to verify information regarding your policy. These verifications can take the form of a telephone call, e-mail, fax or letter. It is imperative your insurance provider be instructed to provide whatever information is requested in a timely manner.

Upon receipt of the proper Insurance Document from your insurance provider, please deliver it promptly to me. If you have any questions with regard to the above requirements, please contact me.


Respectfully yours,

M&T Bank

By: ______________________________



Agreed to on ______________20__


By: _______________________________



Customer to provide the following:

Insurance provider’s name and contact information (telephone number):



NOTE: If insurance provider changes, Insured should immediately contact the Bank and provide the new insurance provider’s name and contact information.


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