IX. — 5:201 Care and insurance of the encumbered assets

The party who is in possession of the encumbered assets has an obligation to keep them identifiable from assets owned by others and must preserve and maintain them with reasonable care.

The other party is entitled to inspect the encumbered assets at any reasonable time.

The security provider has an obligation to insure the encumbered assets against such risks as are usually insured against by a prudent owner at the location of the assets. Upon request of the secured creditor, the security provider must furnish proof of the insurance coverage. If there is no or only insufficient insurance coverage or no proof of it, the secured creditor is entitled to take out sufficient insurance and to add any expenses to the obligation covered by the security.