1. If the insured item is encumbered by a pledge, mortgage, or other security in rem, such rights shall attach to the insurance proceeds payable to the insured under the insurance contract. 2. If these rights referred to in Paragraph (1) of this Article are registered or notified to the insurer, the insurer may not pay what they are obligated to pay to the insured except with the consent of those creditors. 3. If the insured item is seized or placed under sequestration, the insurer, upon being notified, may not make any payment to the insured of what they are obligated to pay.
Interpretation and application must be checked against the official text and current version.