CO Variable Rate Mortgage-Negative Amortization Endorsement 110.9

ENDORSEMENT ATTACHED TO AND MADE A PART

OF POLICY OF TITLE INSURANCE

SERIAL NUMBER __________

ISSUED BY

STEWART TITLE GUARANTY COMPANY

HEREIN CALLED THE COMPANY

Order No.:

The Company hereby insures against loss or damage by reason of:

(1) The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions therein which provide for changes in the rate of interest, or capitalization of interest.

(2) Loss of priority of the lien of the insured mortgage as security for the unpaid principal balance of the loan, including any capitalized interest, together with interest as changed in accordance with the provisions of the insured mortgage, which loss of priority is caused by said changes in the rate of interest or capitalization of interest.

"Changes in the rate of interest", as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the insured mortgage at Date of Policy.

"Capitalization of Interest", as used in this endorsement shall mean only those additions to principal arising by the failure of the payments provided in the insured mortgage to pay in full the accrued interest as it becomes due, whereupon said unpaid amounts are thereafter treated as principal.

This endorsement does not insure against loss or damage based upon (a) usury, or (b) any consumer credit protection or truth-in-lending law.

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto, except that the insurance afforded by this endorsement is not subject to paragraph 3 (d) of the Exclusions from Coverage. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.

Signed under seal for the Company, but this endorsement is to be valid only when it bears an authorized countersignature.

For issuing guidelines on this form, see Guidelines