Pending disbursement of the full proceeds of the loan secured by the lien instrument set forth under Schedule A hereof, this policy at the effective date hereof insures only to the extent of the amount actually disbursed, but increases as each disbursement is made in good faith and without knowledge of any defects in, or objection to, the title up to the face amount of the policy. Nothing contained in this paragraph shall be construed as limiting any exception under Schedule B or any printed provision of this policy. Notwithstanding the foregoing, liability hereunder shall only increase as down-date endorsements are issued pursuant to construction advances and as the corresponding fractional premium for the policy and the full premium for the down-date endorsement are paid.
Comment: This clause is required if the premium for the Mortgagee Policy is paid in installments pursuant to Rate Rule R-2(a) which requires, among other things, that the policy amount be $5,000,000 or more.
a title search is made by the Company that reveals no liens, objections or any adverse changes in the title,
(c) the contractor and owner furnish the Company satisfactory paid bills, liens waivers, estoppel certificates and other evidence that all items from which a lien might arise, have been paid or otherwise satisfied, and
(d) the Owner and Contractor furnish the Company satisfactory updated Affidavit and Indemnity Agreement(s) as to the matters referred to in (c) above.