Court Backs Lender On Terror Insurance
GMAC Commercial has prevailed in a terrorism insurance court battle against Brookfield Properties.
The New York State Appeals Court has ruled that the commercial mortgage lender can force Brookfield Properties to buy terrorism insurance for a property at 245 Park Avenue here.
Brookfield took out a $500 million mortgage on the property in February 2001 and in the aftermath of 9/11, the real estate investment trust took out additional terrorism insurance coverage for its entire portfolio, including the 245 Park Avenue property.
However, the commercial mortgage lender wanted additional insurance on the property, which it force-placed, and the two parties had gone to court over the dispute.
In a ruling earlier this year, a Lower Court had found for GMAC.
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