PA 1630 ALTA 42-06 Commercial Lender Group 5-1-16

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PA 1630 ALTA 42-06 Commercial Lender Group 5-1-16

Form Document
07/30/2020
V 6

TIRBOP – PA ENDORSEMENT 1630 (ALTA 42-06 COMMERCIAL LENDER GROUP)

ATTACHED TO AND MADE A PART OF POLICY NUMBER ______________________

ISSUED BY

STEWART TITLE GUARANTY COMPANY

 

File No.:_______________________

1.     The insurance provided by this endorsement is

a.     subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy, and

b.     only effective if the Land is not improved with a one-to-four family residential dwelling.

2.     For the purposes of this endorsement only:

a.     “Lender Group” means a group of lenders owning portions of the Indebtedness.  The composition of the Lender Group may change by the addition or withdrawal of Participants during the term of the Insured Mortgage.

b.     “Participant” means a member of the Lender Group, but does not include a non-insured obligor as described in Section 12(c) of the Conditions. A Participant is an Insured under the policy to the extent of its ownership of a portion of the Indebtedness, whether it acquires its portion of the Indebtedness on or after Date of Policy.

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

a.     The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

b.     Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

4.     The Company reserves all rights and defenses as to any Participant that the Company would have had against any other Insured under the policy, unless the Participant acquired its portion of the Indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter insured against by this policy.

IN WITNESS WHEREOF, the Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed agent of the Company.

No guidelines are available for this form at this time.