STG Recharacterization Endorsement Guideline 2

Organizational Guidelines

STG Recharacterization Endorsement Guideline 2

Guideline Document
V 4


These endorsements insure against recharacterization of the stated transaction, such as a sale/leaseback transaction.

Underwriting Requirements:

(1) A Senior Underwriter must approve issuance of the endorsement.
(2) The relevant documents must be reviewed to verify that the transaction is not a loan transaction. Issues to be considered include options to purchase for less than fair market value; puts by the lessor, extremely short or long term leases, and provisions that use standard loan terms (e.g., "interest").

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):