General Star Indemnity Co. v. Pike County National Bank

BANKS, Justice, for the Court:

¶ 1. Today, we affirm a decision imposing an equitable lien in favor of a bank-mortgagee on proceeds from a fire insurance policy. We hold that Miss.Code Ann. § 83-13-9 (Rev.1991) protects a mortgagee by requiring the mortgagor and the insurer to attach a mortgagee loss payable clause in favor of the mortgagee to a fire insurance policy taken on a building subject to a mortgage. The bank is such a mortgagee, and entitled to the award granted by the Chancery Court.

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¶2. On December 4, 1989, Pike County National Bank (PCNB) loaned Wendell and Julia Blount…