STG Mechanic's Lien Disbursement Endorsement 1
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.
MECHANIC'S LIEN DISBURSEMENT ENDORSEMENT
Attached to and Forming a Part of
____________ No. _____________
STEWART TITLE GUARANTY COMPANY
The Company hereby assures the Insured that the Company will not claim that the Insured has created, suffered or agreed to the creation of a statutory lien for labor or material which has priority over the lien of the insured mortgage, provided the Insured has
(A) Disbursed funds under the insured mortgage in accordance with the terms of the loan documents;
(B) Disbursed funds for all work done and material appropriated for the work of improvement on the land prior to the date on which the right to suspend loan fund disbursements has accrued in favor of the insured by reason of a default for a material breach as provided in the loan documents or the failure of any other material condition precedent to the disbursement obligation;
(C) Disbursed funds pursuant to the laws of the jurisdiction governing the insured mortgage;
(D) And has not caused (by affirmative exercise of rights to do so under applicable loan documents) the work of improvements to continue on the land after declaring a default unless Insured advances money for labor and material for the work done subsequent to a declaration of default.
The total liability of the Company under the policy and any endorsements therein shall not exceed, in the aggregate, the face amount of the policy and costs which the Company is obligated under the conditions and stipulations thereof to pay.
This Endorsement is made a part of the Policy. It is subject to all the terms of the Policy and prior endorsements, except as expressly stated on this Endorsement.
This endorsement is not to be construed as insuring the title to said estate or interest as of any later date than the date of the policy, except as herein expressly provided as to the subject matter hereof.
No guidelines are available for this form at this time.