CLTA 124.1-06 Covenants are Binding (09-10-15)

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CLTA 124.1-06 Covenants are Binding (09-10-15)

Form Document

Attached to Policy No.
Issued by

The Company insures against loss or damage sustained by reason of the failure, at Date of Policy, of the covenants of the covenantor in favor of the covenantee set out in Section(s)_________ and __________ of the instrument recorded ______________ to do or refrain from doing some act relating to the use, repair or maintenance of the improvements, or payment of taxes and assessments on the real property, or some part thereof, described as (description of burdened land of covenantor) to be binding upon the covenantor and each successive owner, during his ownership, of any portion of such real property, and upon each person having any interest therein derived from the covenantor or through any such successive owner thereof, except a mortgagee of a mortgage, or the trustee or beneficiary of a deed of trust, while not in possession of such real property in such capacity, solely by reason of the failure of said covenants to be either covenants running with the land or equitable servitudes.

    Provided, however, that no insurance coverage is provided by this Endorsement should such covenants fail to bind a successive owner who derives Title through: a) a tax deed; b) a foreclosure of a bond or assessment; c) enforcement of a federal tax lien; d) a bankruptcy, as trustee or otherwise; e) a right or lien existing prior to the date of recording of the instrument containing said covenants.

    This endorsement does not insure against loss or damage which the Insured may sustain by reason of the nonperformance of any said covenants.

    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.




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