NM Form 31 Owner's Leasehold Conversion Endorsement

Owner's Leasehold Conversion Endorsement

Attached to Policy No. ________.

Issued By

STEWART TITLE GUARANTY COMPANY

Effective on and after _______, the Conditions and Stipulations of said policy are hereby amended in the following particulars:

Section 1 of the Conditions and Stipulations is hereby amended by deleting therefrom subparagraph (h), if such subparagraph appears in the policy.

Section 7 subparagraph (b) is amended to read as follows:

"(b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate of interest or the full considerations paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the amount of insurance stated in Schedule A, then this policy is subject to the following:

(i) where no subsequent improvement has been made, as to any particular loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or

(ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement.

The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A."

If the policy contains Section 14, Valuation Of Estate Or Interest Insured, and Section 15, Miscellaneous Items Of Loss, then such sections are hereby deleted and Sections 16, 17, 18, and 19 are hereby renumbered 14, 15, 16, and 17 respectively.

This endorsement when countersigned below by a validating signatory, is hereby made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsement thereto. 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.

IN WITNESS WHEREOF, the company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers.

Dated: ____________________________

STEWART TITLE GUARANTY COMPANY

Countersigned By: __________________________, Validating Signatory

SEAL

 

For issuing guidelines on this form, see Guidelines