Rainier Credit Co. v. Western Alliance Corp.

Opinion

JAMES, J. *

Rainier National Bank (the Bank) required as a condition of advancing certain loans that its borrowers insure the collateral they used to secure their loans. The Bank’s loan agreement provided that the Bank could purchase insurance at the borrower’s expense should the borrower neglect to obtain insurance. Because of the cost involved in determining whether insurance had been provided on each individual loan, the bank purchased a blanket policy to ensure that all collateral in which it had a security interest was insured. This blanket policy, however, had proved increasingly…