Delaware General Assembly


CHAPTER 239 - PROTECTION OF LIENHOLDERS

AN ACT TO PROTECT LIEN HOLDERS IN THE ADVANCEMENT OF PREMIUMS ON INSURANCE POLICIES HELD AS COLLATERAL TO SUCH LIEN OR LIENS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

1. Any person, firm, or corporation failing within thirty days after notice to furnish to any lien holder of record, an adequate fire insurance policy or policies, the premium or premiums upon which have been paid in full, in an amount sufficient to protect the interest of the lien holder, shall forfeit the right to procure such policy or policies of fire insurance and the lien holder of record may obtain the necessary fire insurance and charge the premium or premiums paid to the principal amount of the indebtedness.

2. Any mortgagee having paid any premium or premiums of fire insurance covering the mortgaged premises, shall in any action of Scire Facias Sur Mortgage obtain in the final judgment in said cause, the amount of money paid for such fire insurance premium or premiums, provided, there is set forth in the affidavit of demand filed in said action, an itemized list of the insurance premium or premiums paid, the total amount of the payments thereof, and that the said amount has been paid, and also provided, there is attached to the affidavit of demand fire insurance premium receipts from the agent issuing the policy or policies.

Approved April 15, 1935.