Guideline: ALTA Endorsement 42-06 (Commercial Lender Group) (12-02-13)

Organizational Guidelines

Guideline: ALTA Endorsement 42-06 (Commercial Lender Group) (12-02-13)

Guideline Document
V 4


This endorsement may be appropriate when a group of lenders, described as a “Lender Group” for this endorsement, own portions of the indebtedness. An individual lender which is a member of the Lender Group is described as a “Participant”. The composition of the Lender Group may change by the addition or withdrawal of Participants. A Participant is an Insured under the policy to the extent of its ownership of a portion, whether it acquires its portion of the Indebtedness on or after Date of Policy. 

In this endorsement, the Company insures against loss sustained by reason of the invalidity or unenforceability of the lien of the Insured Mortgage, and the loss of priority of the lien of the Insured Mortgage which losses are caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants. 

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, etc. 

This endorsement is designed for issuance with a 2006 ALTA Loan Policy. 

Underwriting Requirements:

  1. The Land is not improved with a one-to-four family residential dwelling.
  2. The agreement between the Participants is reviewed for any provision inconsistent with the coverages of this endorsement.
  3. This endorsement may be issued or modified only after written approval is obtained from Stewart Title Guaranty Company underwriting personnel.

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.