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06
May
2021

Collateral Insurance Proceeds to Credit Union

Here, the court held that the insurance company could not recover funds it paid to the Credit Union as an insured party on stolen collateral, even though the debtor’s insurance claim was fraudulent.

The Credit Union was not aware the claim was fraudulent when it received the funds and was, therefore, entitled to those funds. Lloyds of London v. London Limousine Service, Progressive Credit Union, et al., (U.S. Dist. Ct., S.D. New York, No. 89-0926).

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Thursday, May 6th, 2021 at 8:48 am and is filed under National, Secured Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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