Sec.32-13-3. Covenant for fire and other hazard insurance

The mortgage shall contain a covenant acceptable to the commission binding the mortgagor to keep the property insured by a standard policy or policies against fire and such other hazards as the commission may stipulate, in an amount which will comply with the co-insurance clause applicable to the location and character of the property. The initial coverage shall be in an amount estimated by the commission at the time of completion of the entire project of units thereof. The policies evidencing such insurance shall be with companies and in amounts acceptable to the commission and shall have attached thereto a standard mortgagee clause making loss payable to the mortgagee and the commission as interests may appear.

(Effective November 26, 1968)