Guideline: ALTA Endorsement 9.3-06 (Covenants, Conditions, and Restrictions - Loan Policy) - Revised (04/02/12)

Explanation:

This endorsement to the Loan Policy insures against violations of covenants and notices of violations of covenants relating to environmental protection.  It is issued on Improved land.

Endorsement 9.3-06 is issued with a 2006 ALTA Loan Policy.

Underwriting Requirements:

(1)  Covenant(s) (covenant, condition, limitation, or restriction in a document or instrument in effect at Date of Policy).

(a)  Verify that there are no forfeiture provisions in the Covenant(s). If there are forfeiture provisions, verify that the forfeiture provisions are expressly subordinate to the lien of the Insured Mortgage. If forfeiture provisions are not subordinate to the lien of the Insured Mortgage, delete Section 3(a).

(b)  Verify that any maintenance lien in the Covenant(s) is expressly subordinate to the lien of the Insured Mortgage and that prior assessments are paid before closing. If the Covenant(s) create a maintenance lien and do not expressly subordinate the maintenance lien to the lien of the Insured Mortgage, delete Section 3(a).

(c)  Verify whether the existing use materially violates the Covenant(s). If the existing use violates the Covenant(s), except to the violation in Schedule B.

(d)  Verify that there is no existing violation of the Covenant(s). If there is any existing violation of the Covenant(s), except to the violation in Schedule B.

(e)  Unless underwriting guidelines by the Company provide otherwise, require a survey reflecting the current Improvements.  Except in Schedule B to all encroachments over building setback lines.

(2)  Notices of Violation of Environmental Covenants

If a notice of violation of a Covenant relating to environmental protection has been recorded in the real property records (the “Public Records”), except to it in Schedule B.

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.