STG Loan-to-Leasehold (Policy Conversion) Endorsement 1992
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.
ENDORSEMENT TO TITLE POLICY
STEWART TITLE GUARANTY COMPANY
HEREIN CALLED THE COMPANY
POLICY CONVERSION ENDORSEMENT
This policy is hereby amended as follows:
1. The following sub-paragraph is added to paragraph numbered 1 of this policy’s conditions and stipulations:
|"(h) "leasehold estate": the right of possession for the term or terms described in Schedule A hereof subject to any provisions contained in the Lease which limit the right of possession."
2. The following numbered paragraphs are added to the conditions and stipulations:
|"19. Valuation of Estate or Interest Insured
| If, in computing loss or damage incurred by the insured, it becomes necessary to determine the value of the estate or interest insured by this policy, the value shall consist of the then present worth of the excess, if any, of the fair market rental value of the estate or interest, undiminished by any matters for which claim is made, for that part of the term stated in Schedule A then remaining plus any renewal or extended term for which a valid option to renew or extend is contained in the Lease, over the value of the rent and other consideration required to be paid under the Lease for the same period.
This paragraph applies only to the leasehold estate or estates described in Schedule A herein.
|20. Miscellaneous Items of Loss
| In the event the insured acquires all or any part of the estate or interest in the land described in Schedule A in accordance with the provisions of Section 2(a) of these Conditions and Stipulations and thereafter is evicted from possession of all or a part of the land by reason of any matters insured against by this policy, the following, if applicable, shall be included in computing loss or damage incurred by the insured, but not to the extent that the same are included in the valuation of the estate or interest insured by this policy.
| (a) The reasonable cost of removing and relocating any personal property which the insured has the right to remove and relocate, situated on the land at the time of eviction, the cost of transportation of that personal property for the initial twenty-five miles incurred in connection with the relocation, and the reasonable cost of repairing the personal property damaged by reason of the removal and relocation. The costs referred to above shall not exceed in the aggregate the value of the personal property prior to its removal and relocation.
| "Personal property", above referred to, shall mean chattels and property which because of its character and manner of affixation to the land, can be severed therefrom without causing appreciable damage to the property severed or to the land to which the property is affixed.
|(b) Rent or damages for use and occupancy of the land prior to the eviction which the insured as owner of the leasehold estate may be obligated to pay to any person having paramount title to that of the lessor in the Lease.
|(c) The amount of rent which, by the terms of the Lease, the insured must continue to pay to the lessor after eviction from the land, or part thereof, from which the insured has been evicted.
|(d) The fair market value, at the time of the eviction, of the estate or interest of the insured in any sublease of all or part of the land existing at the date of the eviction.
|(e) Damages which the insured may be obligated to pay to any sublessee on account of the breach of any sublease of all or part of the land caused by the eviction.
|This paragraph applies only to the leasehold estate or estates described in Schedule A herein."
This Endorsement is made a part of said policy and is subject to the schedules, conditions and stipulations therein, except as modified by the provisions hereof.
Nothing herein contained shall be construed as extending or changing the effective date of said policy, unless otherwise expressly stated.
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_____.
No guidelines are available for this form at this time.