CLTA Bondholder's Policy on Sublease Endorsement Guideline 119.4

Explanation:

This endorsement provides assurance to bondholders that a sublease on the land is valid and will be binding at the commencement of its term.

Underwriting Requirements:

(1) This endorsement is usually requested in public financing transactions involving the formation of a special agency by a "Joint Exercise of Powers Agreement" between a city and county or the formation of a community service district or nonprofit corporation. Therefore, the documents surrounding the transaction should be reviewed thoroughly for accuracy and legality.
(2) If title personnel have any questions surrounding the documents used to set up these public financing transactions, they should consult the appropriate Stewart Title Guaranty underwriting personnel.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

CLTA Validity of Sublease, Joint Powers (06-03-05) 119.4