ALTA Endorsement 36.5-06 (Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Loan) (04-02-12)


Attached to Policy No. __________

Issued by


1.  The insurance provided by this endorsement is subject to the exclusions in Section 4 of this endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy. 

2.  For purposes of this endorsement only:

a.  “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in effect at Date of Policy.

b.  “Electricity Facility” means an electricity generating facility that may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

c.  “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer)  dated ____, last revised ________ ,designated as  (insert name of project or project number)  consisting of ___sheets.

d.  ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to the Land in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.

3.  The Company insures against loss or damage sustained by the Insured by reason of:

a.  A violation of a Covenant that:

i.  divests, subordinates, or extinguishes the lien of the Insured Mortgage;

ii.  results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; or

iii.  causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness.

b.  A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement, unless an exception in Schedule B of the policy identifies the violation;

c.  Enforced removal of any Electricity Facility or Severable Improvement, as a result of a violation of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or

d.  A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection, describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.

4.  This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) resulting from:

a.  any Covenant contained in an instrument creating a lease or easement;  

b.  any Covenant relating to obligations of any type to perform maintenance, repair, or remediation on the Land; or

c.  except as provided in Section 3.d., any Covenant pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

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.

[Witness clause optional]


Copyright 2006-2021 American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

For issuing guidelines on this form, see Guidelines