What is the term for a clause similar to the mortgage clause but that applies to chattel property?

The correct term for a clause that functions similarly to a mortgage clause but specifically pertains to chattel property is the Loss Payable clause. This clause is particularly important in the context of property insurance because it designates how claims will be paid when covered losses occur.

In the case of chattel property, which refers to tangible items that are movable and not affixed to the land, the Loss Payable clause ensures that the lienholder or secured party has a right to the insurance proceeds if the property is damaged or destroyed. This means that if an insured chattel is lost or damaged, the insurance company will pay the lienholder directly for any losses up to the outstanding balance of the loan or the value of the property, depending on the terms of the insurance policy.

This clause helps protect the interests of lenders in scenarios involving personal property used as collateral, enabling them to recover their investment in the event of a loss. Thus, it serves a similar purpose as the mortgage clause does for real estate, ensuring financial protection for parties involved in the ownership or financing of the property.

In contrast, other options such as the Loss Settlement Clause and the Standard Mortgage Clause do not specifically address chattel property, and the No Benefit to Bailee clause relates to the