Sentry Insurance v. Mells

Pannell, Presiding Judge.

On May 3, 1972, the SBA (Small Business Administration) granted a $25,000 loan to appellee, secured by a first lien on inventory, fixtures and equipment, with a proviso that appellee acquire hazard insurance and name the SBA in the mortgage clause. On January 10, 1973, appellee took out the required hazard insurance. About February 1,1973, a fire occurred in the basement of the building occupied by the appellee, but was extinguished before damage to the insured property occurred. On February 3, 1973, a second fire destroyed the business and on March 2, 1973, appellee…