OTIRO No. 102 Insuring Two Mortgages in One Policy (for use with ALTA 2021 Loan Policy) (9-4-23)

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OTIRO No. 102 Insuring Two Mortgages in One Policy (for use with ALTA 2021 Loan Policy) (9-4-23)

Form Document
11/21/2023
V 4

OTIRO 102 INSURING TWO MORTGAGES IN ONE POLICY ENDORSEMENT
(FOR USE WITH ALTA 2021 LOAN POLICY)
ATTACHED TO POLICY NUMBER ____________

ISSUED BY                                                     
STEWART TITLE GUARANTY COMPANY

Order Number_______________

Date: ______________

Premium: ___________

1. The term “Insured Mortgage” wherever used in the policy shall be construed as referring to both of the mortgages described in Schedule A except where used in this endorsement.

2.  Paragraph 10 of the insuring provisions of said policy is hereby deleted and replaced with the following:

“10.  (1)  The lack of priority of the lien of the Insured Mortgage referred to in subparagraph (a) of paragraph 4 of Schedule A upon the Title over any other lien or encumbrance; or encumbrance on the Title as security for the components of the Indebtedness as listed in (3);

(2) The lack of priority of the lien of the Insured Mortgage referred to in subparagraph (b) of paragraph 4 of Schedule A upon the Title over any other lien or encumbrance on the Title as security for the components of the Indebtedness as listed in (3), except the Insured Mortgage referred to in subparagraph (a) of paragraph 4 of Schedule A; and

(3) The lack of priority of the lien of the Insured Mortgages referred to in subparagraphs (a) and (b) of paragraph 4 of Schedule A upon the Title over any other lien or encumbrance on the Title as security for the following components of the Indebtedness:

 a.  the amount of the principal disbursed as of the Date of Policy;

b.  the interest on the obligation secured by the Insured Mortgage;

c.  the reasonable expense of foreclosure;

d.  amounts advanced for insurance premiums by the Insured before the acquisition of the estate or interest in the Title; and

e.  the following amounts advanced by the Insured before the acquisition of the estate or interest in the Title to protect the priority of the lien of the Insured Mortgage:

i.   real estate taxes and assessments imposed by a governmental taxing authority; and

ii.  regular, periodic assessments by a property owners’ association.”

3. The Company insures against loss or damage sustained by reason of any defect, lien, encumbrance,  adverse claim, or other matter affecting the priority of the Insured Mortgage shown in subparagraph (b) of paragraph 4 of Schedule A that have intervened between the time of the recording of the Mortgage shown in subparagraph (a) of paragraph Schedule A and the Mortgage shown in subparagraph (b) of paragraph 4 of Schedule A, except as shown on Schedule B, Part I.

4.  Condition 11 is amended to add the following:

“Loss under this policy shall be payable first to the insured owner of the Indebtedness secured by the Mortgage referred to in subparagraph (a) of paragraph 4 of Schedule A, and if such ownership vests in more than one, payment shall be made ratably as their respective interests may appear, and thereafter, any loss shall be payable to the owner of the Indebtedness secured by the Mortgage referred to in subparagraph (b) of paragraph 4 of Schedule A and, if more than one, then to such insured ratably as their respective interests may appear.”

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.

No guidelines are available for this form at this time.