CFC Insurance Ltd
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Residual Value Insurance

Residual Value Insurance

Traditional CTL Financing

Residual Value Insurance (RVI):

Insures the balloon payment of a long dated loan.

Triggers:

  • Non-payment of balloon balance.
  • Bank must opt to submit a claim.

Limits:

CTL Financing with RVI Coverage

  • Policy limit is no more than 50% Dark Value of the asset and land.
  • Term coincides with primary term of lease, typically 10-20 years.

Payment:

  • Paid for by the borrower for benefit of the lender.

Subrogation

  • In case of claim the asset and land are surrendered (free and clear).