OR Bondholder's Endorsement for ALTA Loan Policy 7.13B
ENDORSEMENT TO TITLE POLICY
STEWART TITLE GUARANTY COMPANY
HEREIN CALLED THE COMPANY
BONDHOLDER ENDORSEMENT FOR ALTA STANDARD LOAN POLICY
Paragraph 1 of the Conditions and Stipulations of this policy is hereby amended by deleting therefrom subparagraph (a) and substituting in lieu thereof the following:
(a) "insured": the insured named in Schedule A together with (1) each owner or legal holder of any of the bonds secured by the insured mortgage, (2) each successor of the named insured, as trustee under said mortgage, and each successor in ownership of any of said bonds (reserving, however, all rights and defenses as to any successor of the named insured, as trustee, and as to any such successor in ownership of any of said bonds; also reserving all rights and defenses as to any such successor who acquired the bonds or the interest of said trustee by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisers, survivors, personal representatives, next of kin or corporate or fiduciary successors that the Company would have had against the successor's transferor), and further includes (3) any governmental agency or instrumentality which is an insurer or guarantor under an insurance contract of guaranty insuring or guaranteeing the indebtedness evidenced by said bonds, or any part thereof, whether named as an insured herein or not, and (4) the parties designated in Paragraph 2(a) of these Conditions and Stipulations.
Paragraph 1 of the Conditions and Stipulations of this policy is further hereby amended by adding subparagraph (g) thereto to read as follows:
(g) "bond" or "bonds": the evidences of indebtedness, whether one or more, secured by said mortgage.
Paragraph 5 of the Conditions and Stipulations of said policy is hereby amended by deleting the printed text thereof and substituting in lieu thereof the following:
The Company shall have the option to pay or otherwise settle for or in the name of the insured any claim insured against, or to terminate all liability and obligations of the Company hereunder by paying or tendering payment of the amount of insurance under this policy together with any costs, attorney's fees and expenses incurred up to the time of such payment or tender of payment by the insured and authorized by the Company. In case loss or damage is claimed under this policy by an insured owner or legal holder of any of the bonds secured by the insured mortgage, the Company shall have the further option to purchase such bond or bonds for the amount owing thereon together with all costs, attorney's fees and expenses which the Company is obligated hereunder to pay. If the Company offers to purchase such bond or bonds as herein provided, such insured shall transfer, assign and deliver said bond or bonds and the mortgage, and any collateral securing the same to the Company upon payment as herein provided. Any such loss under this olicy shall be payable to the insured insured as their respective interests may appear. If payment is made to any owner or legal holder of any of said bonds, such payment shall be made ratably with other bondholders. Payment by the Company to any owner or legal holder of any of said bonds shall reduce pro tanto the liability of the Company under this policy.
This Endorsement is made a part of the policy and is subject to all the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, this Endorsement 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 prior endorsements, nor does it increase the face amount thereof.
Signed under seal for the Company, but this Endorsement is to be valid only when it bears an authorized countersignature, this the _____ day of ___________ 20____.
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