STG Prepayment Penalty 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.
Attached To and Made a Part of
Policy No. __________
STEWART TITLE GUARANTY COMPANY
The Company hereby insures the Insured against loss or damage that may be sustained by the insured by reason of a final decree entered by a court of competent jurisdiction finding that the lien of the mortgage as security for the reconveyance fee as described in paragraph _____ of the mortgage:
|(a) is invalid or unenforceable, or|
|(b) does not share the same priority in relation to any other claims or liens against the land and is afforded the principal of the loan secured by the mortgage.
In the event of a loss compensable under the endorsement, the coverage afforded hereunder is in addition to and not included in the Amount of Insurance stated in Schedule A of the policy. Such additional insurance shall not exceed the sum of $ ____________ .
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
Nothing contained in this endorsement shall be considered as insuring against loss or damage sustained or incurred by reason of:
|(a) usury, or|
|(b) any consumer credit protection or truth-in-lending law, or|
|(c) costs, expenses or attorneys' fees required to obtain a determination, by judicial proceeding or otherwise, of the amount of the reconveyance fee due, or|
|(d) any equitable or statutory prohibition or limitation on enforceability of a reconveyance fee.
This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements 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.
[Witness clause optional]
For issuing guidelines on this form, see Guidelines