PA Future Advance-Letter of Credit Endorsement 1150

  

STEWART TITLE

GUARANTY COMPANY

 

ENDORSEMENT

 

Attached to and made a part of Policy Number                                                            

 

1.     The insurance for Advances added by Section 2 of this endorsement is subject to: the exclusions in Section 3 of this endorsement and the Exclusions from Coverage in the Policy, except Exclusion 3(d); the provisions of the Conditions and Stipulations, except Section 9(b); and the Exceptions contained in Schedule B.

 

a.       ?Agreement,? as used in this endorsement, shall mean the letter of credit, surety agreement or reimbursement agreement, the repayment of Advances under which are secured by the insured mortgage.

b.       ?Advances,? as used in this endorsement, shall mean only those advances of principal indebtedness made after the Date of Policy as provided in the Agreement, including expenses of foreclosure, amounts advanced pursuant to the insured mortgage to pay taxes and insurance, assure compliance with laws or to protect the lien of the insured mortgage before the time of acquisition of the estate or interest in the land and reasonable amounts expended to prevent deterioration of improvements, together with interest on those advances.

 

2.     The Company insures against loss or damage to the insured as a result of:

 

a.     The invalidity or unenforceability of the lien of the insured mortgage as security for each Advance.

b.     The priority of any lien or encumbrance over the lien of the insured mortgage as security for each Advance.

c.     The invalidity or unenforceability or loss of priority of the lien of the insured mortgage as security for the unpaid principal indebtedness, Advances and unpaid interest resulting from (i) re-Advances and repayments of indebtedness; (ii) earlier periods of no indebtedness owing during the term of the mortgage; or (iii) the insured mortgage not complying with the requirements of state law of the state in which the land is located to secure Advances.

 

3.     This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) resulting from the loss of priority of Advances to:

 

a.    Real estate taxes or assessments imposed on the land by governmental authority arising after the Date of Policy; or

b.       Any federal or state environmental protection lien.

 

4.     The Amount of Insurance defined in Section 2(c)(ii) of the Conditions and Stipulations shall include Advances.

 

5.     Section 8(d) of the Conditions and Stipulations shall not apply to Advances.

 

 

This endorsement is issued as part of the Policy.  Except as it expressly states, it does not (i) modify any of the terms and provisions of the Policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance.  To the extent a provision of the Policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.  Otherwise, this endorsement is subject to all of the terms and provisions of the Policy and of any prior endorsements to it.

 

In Witness Whereof, STEWART TITLE GUARANTY COMPANY has caused to be hereto affixed, duly attested, its corporate seal.                     

 

 

 

Countersigned:

 

_______________________________________

Authorized Countersignature

 

 

TIRBOP-PA ENDORSEMENT 1150  (ALTA Endorsement 14.2) (Future Advance - Letter of Credit) (01/01/2005)   LOAN POLICY ONLY

PROHIBITED FOR POLICIES COVERING 1-4 FAMILY RESIDENTIAL PROPERTY

 

 

 

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