STG Letter of Credit 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.
LETTER OF CREDIT ENDORSEMENT
Attached to Policy No. __________
STEWART TITLE GUARANTY COMPANY
The Company insured against loss or damage sustained by the insured by reason of the entry of a final court order or decree of a court of competent jurisdiction determining:
|(a) That the lien of the mortgage described in Schedule A is invalid as security for payments the insured is legally obligated to make and does make under the terms of the letter of credit described in said mortgage,
|(b) That the payments described in (a) are not entitled to the same lien priority over liens, encumbrances, and other matters disclosed by the public records subsequent to the date of Policy as would be afforded to payments made at the date of Policy, or
|(c) That the lien securing the payment described in (a) is subject to avoidance under Sections 544, 547, 548 or 549 of the Bankruptcy Code (as such sections exist as of the date of this Endorsement) in a proceeding naming the mortgagor as debtor.|
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
This Endorsement is not to be construed as insuring against loss resulting from any stay of enforcement or effects of the Bankruptcy Code which could have been sustained by the insured if all disbursements intended to be secured by the mortgage had been made prior to the filing of any proceeding under the Bankruptcy Code.
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