Post by mrclondon on Apr 4, 2015 11:58:43 GMT
The borrowers of the latest TC loan (Gui** Pl****** L******) are taking out Personal Guarantee Insurance with PGI Cover , a concept I've not heard of before. Its not a total solution to worthless PG's as the cover % ramps up over a 5 year period but a useful step in the right direction.
Its also worth noting the following explanation by the TC sponsor (F&P) "The terms of the PG Insurance policy requires the guarantor to promptly notify the insurer should any notifiable events set out in the PG Insurance policy occur. A failure by the guarantor to notify the insurer of a notifiable event could result in the PG Insurance being rendered invalid. Lenders should note, therefore, that the existence of PG Insurance does not guarantee that should a personal guarantee be called upon there will sufficient funds available to meet the full value of the personal guarantee.
It will be in the interest of a guarantor to promptly notify the insurer of any notifiable events so as to ensure that their personal guarantee remains covered by the PG Insurance. "
