STG Short Form Commercial Loan Policy and Addendum 1

Amount of Insurance: _______________ Premium: _______________
File Number: ______________________ Loan Number: ___________
Mortgage Amount: _________________ Mortgage Date: __________
Policy Number: ___________________ Date of Policy: ___________

or date of recording of
the insured mortgage,
whichever is later.

Name of Insured: ___________________________________
Name of Borrower (s): ______________________________
The Company insures that the Property Address is: ______________________________
County and State: _____________________________
The Company insures that the following type of improvement(s) is on the land: ________
________________________________________________________________________

The estate or interest in the land identified in this Schedule A and which is encumbered by the insured mortgage is fee simple (or such other estate or interest as specifically identified in the insured mortgage) and is at Date of Policy vested in the borrower(s) shown in the insured mortgage and named above.

The land referred to in this policy is described as set forth in the insured mortgage.

This policy consists of one page, including the reverse side hereof, unless an addendum is attached and checked below:

____ Addendum attached ____ No addendum attached

The endorsements and affirmative coverages checked below are incorporated herein:

__ TAX PARCEL: The Company insures that the land is not taxed with any other land.

__ SUBDIVISION MAP ACT: The Company insures that the land is a lawfully created parcel in accordance with existing subdivision map acts, laws, ordinances and regulations.

__ FUTURE ADVANCES: The Company insures that future advances made in accordance with the insured mortgage will have the same priority as advances made at Date of Policy would have, except for matters actually known by the insured at the date of advance.

__ TAX DEED: The Company insures that any easement insured herein will not be extinguished by foreclosure of a real estate tax lien or assessment lien on the servient estate encumbered by the easement.

__ ZONING: The Company insures against the enforced removal of existing improvements because of existing violation of zoning laws or ordinances.

__ DOING BUSINESS: The Company insures against unenforceability of the lien of the insured mortgage because making the loan violates existing doing business laws.

__ USURY: The Company insures against a final judgment determining invalidity of the insured mortgage because of violation of existing usury laws of the state in which the land is located.

__ ALTA ENDORSEMENT 6 (Variable Rate)

__ ALTA ENDORSEMENT 6.2 (Variable Rate-Negative Amortization)

__ ALTA ENDORSEMENT 8.1 (Environmental Protection Lien, but the Company deletes any provision limiting the endorsement to land used or to be used primarily for residential purposes) referring to the following state statute(s):

________________________________________________________________________

__ ALTA ENDORSEMENT 9 (Restrictions, Encroachments, Minerals)

SUBJECT TO THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B BELOW, AND ANY ADDENDUM ATTACHED HERETO, STEWART TITLE GUARANTY COMPANY, A TEXAS CORPORATION, HEREIN CALLED THE "COMPANY?, HEREBY INSURES THE INSURED IN ACCORDANCE WITH A SUBJECT TO THE TERMS, EXCLUSIONS, CONDITIONS AND STIPULATIONS SET FORTH IN THE AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92), ALL OF WHICH ARE INCORPORATED HEREIN. ALL REFERENCES TO SCHEDULES A AND B SHALL REFER TO SCHEDULES A AND B OF THIS POLICY.

SCHEDULE B

EXCEPTIONS FROM COVERAGE AND AFFIRMATIVE INSURANCE

Exceptions to the extent of the affirmative insurance set forth below, this policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Those taxes and special assessments which become due and payable subsequent to Date of Policy.
   
   
2. Covenants, conditions and restrictions, if any, appearing in the public records; however, this policy insures against loss or damage arising from:
   
   a. the violation of any covenants, conditions and restrictions on or prior to Date of Policy, except that this affirmative insurance does not extend to covenants, conditions and restrictions relating to environmental protection, unless a notice of a violation thereof has been recorded or filed in the public records and is not referenced in an addendum attached to this policy;
   
   b. a forfeiture or reversion of title from a future violation of any covenants, conditions and restrictions appearing in the public records, including any relating to environmental protections; and
   
   c. any provisions in any covenants, conditions and restrictions under which the lien of the insured mortgage can be extinguished, subordinated or impaired.
   
   
3. Any easements or servitudes appearing in the public records; however, this policy insures against loss or damage arising from (a) the encroachment, at Date of Policy, of the improvements on any easement; and (b) any interference with or damage to existing improvements, including lawns, shrubbery and trees, resulting from the use of the easements for the purposes granted or reserved.
   
   
4. Any lease, grant, exception or reservation of minerals or mineral rights appearing in the public records; however, this policy insures against loss or damage arising from: (a) any effect on or impairment of the use of the land by reason of such lease, grant, exception or reservation of minerals or mineral rights; and (b) any damage to existing improvements, including lawns, shrubbery and trees, resulting from the future exercise of any right to use the surface of the land for the extraction or development of the minerals or mineral rights so leased, granted, excepted or reserved. Nothing herein shall insure against loss or damage resulting from subsidence.
   
   
5. This policy insures against loss or damage by reason of any violation, variation, encroachment or adverse circumstance affecting the title that would have been disclosed by an accurate survey. The term "encroachment? includes encroachments of existing improvements located on the land onto adjoining land, and encroachments onto the land of existing improvements located on adjoining land.
   
   
6. Tenants in possession, as tenants only under existing leases in effect at Date of Policy. The Company insures that any right of first refusal or option to purchase is subordinate to the lien of the insured mortgage.

Addendum to Short Form Commercial Loan Policy

SCHEDULE B

Addendum to Policy Number:

File Number: _______________________

IN ADDITION TO THE MATTERS SET FORTH ON SCHEDULE B OF THE POLICY TO WHICH THIS ADDENDUM IS ATTACHED, THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE BY REASON OF THE FOLLOWING: