ALTA Endorsement 42 (Commercial Lender Group) (4-2-24) TC 5-2-24

ALTA 42 ENDORSEMENT - COMMERCIAL LENDER GROUP

This endorsement is issued as part of

Policy Number __________

issued by

STEWART TITLE GUARANTY COMPANY

1.         For the purposes of this endorsement only, the following terms mean:

a.         “Lender Group”: a group of lenders owning portions of the Indebtedness. The composition of the Lender Group may change by the addition or withdrawal of Participants during the term of the Insured Mortgage.

b.         “Participant”: a member of the Lender Group, but does not include an Obligor. A Participant is an Insured under the policy to the extent of its ownership of a portion of the Indebtedness, whether it acquires its portion of the Indebtedness on or after Date of Policy.

2.         The insurance provided by this endorsement is:

a.         subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy, and

b.         only effective if the Land is not improved with a one-to-four family residential dwelling.

3.         The Company insures against loss or damage sustained by the Insured by reason of:

a.         The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

b.         Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

4.         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, lien, encumbrance, or other matter insured against by this policy.

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.

[Witness clause]

STEWART TITLE GUARANTY COMPANY

By: _______________________________________
            [Authorized Signatory]