STG Clogging Endorsement (Option Invalidity) 1

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STG Clogging Endorsement (Option Invalidity) 1

Form Document
02/22/2010
V 1

CLOGGING ENDORSEMENT

(Option Invalidity)

Attached to and Forming a Part of

Policy No. __________

Issued by

STEWART TITLE GUARANTY COMPANY

The Company hereby insures against loss that the Insured shall sustain by reason of a final judgment determining that the Option to Purchase Real Property in accordance with the terms set forth in the Promissory Note secured by the lien of the insured mortgage is invalid or unenforceable because said Option constitutes a "clog" on the mortgagor's equity of redemption, a fettering of the property, a granting of a collateral advantage or other restraint on the mortgagor's equity of redemption, or an unreasonable restraint on the mortgagor's rights of alienation.

THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL

This Endorsement is made a part of the Policy and is subject to the Schedules, Exclusions, and Conditions and Stipulations therein except as modified by the provisions hereof. The total liability of the Company under said Policy and all endorsements attached thereto shall not exceed, in the aggregate, the amount of said Policy and costs which Company is obligated under the Conditions and Stipulations thereof to pay; and nothing contained herein shall be construed as extending or changing the Effective Date of said Policy.

[Witness clause optional]

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.

Copyright 1970-2022 Stewart Title Guaranty Company. All rights reserved. The use of this form (or any derivative thereof) is restricted to Stewart Title Guaranty Company, it’s issuing agents, and affiliates in good standing as of the date of use. All other uses are prohibited.

For issuing guidelines on this form, see Guidelines.