From the PDS "Insurance through Lloys Underwriters has been arranged to cover certain commercial loans such as large development facilities....The maximum loss covered by Lloyds.. is 75% of the nominated loan amount or $3M, which ever is the lesser. As at 30 June 2007, 61.54% of the commercial loan portfolio was insured."
The benchmark asset allocation in the PIF for commercial loans is 45%.
I would assume this insurance would only cover the developer not being able to complete the project.
MFS Price at posting:
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