TIRBOP – PA ENDORSEMENT 1320 (ALTA 29-06 INTEREST RATE SWAP-DIRECT OBLIGATION)
ATTACHED TO POLICY NUMBER ______________________
STEWART TITLE GUARANTY COMPANY
File No.: ______________________
1. The insurance provided by this endorsement is subject to the exclusions in Section 3 of this endorsement, the Exclusions from Coverage in the policy, the Exceptions from Coverage contained in Schedule B, and the Conditions. As used in this endorsement:
a. “Date of Endorsement” is ______________________.
b. “Swap Obligation” means a monetary obligation under the interest rate exchange agreement dated ______________________, between ______________________ and the Insured existing at Date of Endorsement and secured by the Insured Mortgage. The Swap Obligation is included as a part of the Indebtedness.
2. The Company insures against loss or damage sustained by the Insured by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the payment of the Swap Obligation at Date of Endorsement.
3. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of:
a. rights or obligations set, created or confirmed after the Date of Endorsement under a master interest rate exchange agreement existing on or after Date of Endorsement.
b. the stay, rejection or avoidance of the lien of the Insured Mortgage as security for the Swap Obligation, or a court order providing some other remedy, by the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws;
c. the calculation of the amount, if any, determined by a court of competent jurisdiction as the amount of the Swap Obligation; or
d. [if Date of Endorsement is after Date of Policy, add any necessary additional exceptions here].
No guidelines are available for this form at this time.