The purpose of the Mortgagee Guarantee is to simplify the procedures for insurance companies and lending institutions. The guarantee guarantees the mortgagee compensation even if the owner of the mortgage has failed to take out insurance.
The guarantee replaces insurance certificates for real estate with a general market value of EUR 12 million or less and guarantees the mortgagee compensation even if the owner of the mortgage has failed to take out or maintain insurance.
The rights of the mortgagee under this guarantee are in addition to those provided for in the Insurance Contracts Act in Norway.
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