STG Currency Fluctuation Endorsement (ALTA Owner's Policy 10-17-92) 2
This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.
ENDORSEMENT TO OWNER'S POLICY
STEWART TITLE GUARANTY COMPANY
HEREIN CALLED THE COMPANY
CURRENCY FLUCTUATION ENDORSEMENT
Description of Currency: ______________________________________________________________
Exchange Rate as of Effective Date: ____________________________________________________
The Company, recognizing the effect of fluctuation in international currency exchange rates on the adequacy of Policy coverage limits and intending to provide additional monetary protection to the insured Owner named in said Policy, hereby modifies the Amount of Insurance in Schedule A and the provisions regarding the Amount of Insurance in Section 7(a)(i) of the Conditions and Stipulations of said Policy:
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
1. Notwithstanding anything contained in said Policy to the contrary, the Amount of Insurance provided in United States Dollars by said Policy, as stated in Schedule A thereof without adjustment pursuant hereto (hereinafter the "Scheduled Amount"), is subject to cumulative annual upward adjustments in the manner and to the extent hereinafter specified.
2. "Currency" is defined, for purposes of this Endorsement, as that foreign currency or basket of community currencies above specified in this Endorsement.
3. "Exchange Rate" is defined, for purposes of this Endorsement, to be the New York foreign exchange selling rate expressed in United States Dollar equivalent for the Currency applicable to trading among banks of One Million United States Dollars and more, as reported by the Wall Street Journal. (Currently the Wall Street Journal reports such rates as quoted at 3:00 p.m. Eastern Time by Banker's Trust Company. Should such quote be hereafter made as of a different time or should the Wall Street Journal quote rates from a different source, the rates so reported by the Wall Street Journal shall continue to determine the Exchange Rate hereunder. If the Wall Street Journal shall cease to report said rates, the Company shall determine the Exchange Rate in a Reasonably equivalent manner.)
4. "Adjustment Date" is defined, for purposes of this Endorsement, to be 12:01 a.m. Eastern Time on the first January 1 which occurs after the Effective Date of the Policy, shown in Schedule A of the Policy to which this Endorsement is attached, and on each succeeding January 1.
5. An upward adjustment will be made on each of the Adjustment Dates by increasing the Amount of Insurance in force under said Policy by the same percentage, if any, by which the Exchange Rate of the Currency as of the business day preceding such Adjustment Date exceeds, in the case of the first Adjustment Date hereunder, the Exchange Rate of the Currency as of the Effective Date of the Policy, or, in the case of subsequent adjustments, the Exchange Rate of the Currency as of the business day preceding the previous Adjustment Date; provided, however, that notwithstanding the foregoing: (i) the maximum Amount of Insurance in force shall not be increased as of any Adjustment Date by an amount which exceeds 10% of the Scheduled Amount of Insurance as stated in the Policy, (ii) the maximum Amount of Insurance in Force shall never exceed 150% of the Scheduled Amount, less the amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulations, reduces the Amount of Insurance in Force, and (iii) no adjustment shall result in a decrease in the Scheduled Amount of Insurance in force. There shall be no annual adjustment in the Amount of Insurance for years in which there is no percentage increase in said Exchange Rate.
6. If the Currency specified herein shall be replaced as the medium of exchange by the country of origin, then as of the replacement date the replacement currency shall be substituted for the former Currency and become the Currency for purposes hereof. The first adjustment hereunder thereafter occurring shall be based upon the then percentage increase, if any, in the Exchange Rate of the replacement Currency over the Exchange Rate thereof as of the date it replaced the former Currency.
7. In the settlement of any claim against the Company under said Policy, the Amount of Insurance in force shall be deemed to be the amount which is in force as of the date on which the insured claimant first learned of the assertion or possible assertion of such claim, or as of the date of receipt by the Company of the first notice of such claim, whichever shall first occur. Any claim paid under said Policy shall be paid only in United States Dollars irrespective of reference to the Currency for purposes of determination of the Amount of Insurance in force pursuant to this Endorsement.
This Endorsement is made a part of said Policy and is subject to the Exclusions from Coverage, Schedules, Conditions and Stipulations therein, except as modified by the provisions hereof. Nothing herein contained shall be construed as extending or changing the Effective Date of said Policy or as limiting the provisions of Sections 7(a)(ii), 10, and 11 of the Conditions and Stipulations.
Signed under seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature, this the ___ day of ___________ , 20 ___ .
For issuing guidelines on this form, see Guidelines