OTIRO Endorsement No. 62.2 Standard Bondholder's Endorsement
ATTACHED TO POLICY NO.
STEWART TITLE GUARANTY COMPANY
Paragraph 1 of the Conditions and Stipulations of said 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 (i) each owner or legal holder of any of the bonds secured by the Insured Mortgage, (ii) 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 acquires the bonds or the interest of said trustee by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, 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 (iii) any governmental agency or instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the Indebtedness evidenced by said bonds, or any part thereof, whether named as an insured herein or not, and (iv) the parties designated in Paragraph 2(a) of these Conditions and Stipulations.
Paragraph 1 of the Conditions and Stipulations of said policy is further amended by adding subparagraph (h), or (i) as appropriate, thereto to read as follows:
(h [or i]) "bond" or "bonds": the evidence of the Indebtedness, whether one or more, secured by said Mortgage.
Paragraph 6 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 policy shall be payable to the Insured as their respective interest may appear. If the payment is made to any owner or legal holder of any said bonds, such payment shall be made ratably with other bondholders. Payment by the Company to any owner or legal holder of any said bonds shall reduce pro tanto the liability of the Company under this policy.
If this endorsement is attached to an ALTA 1970 Loan Policy (Revised 10-17-84), then the foregoing reference to Paragraph 6 shall be deemed to refer to Paragraph 5. If this endorsement is attached to an ALTA 2006 Loan Policy (Revised 6-17-06), then (A) the foregoing reference to Paragraph 6 shall be deemed to refer to Paragraph 7; (B) the foregoing definition of "insured" shall be deemed to replace subparagraph (e) of Paragraph 1 of the Conditions; and (C) the foregoing definition of ‘bond' or ‘bonds' shall be added to the definitions of Paragraph 1 of the Conditions.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
STEWART TITLE GUARANTY COMPANY
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