This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.
ENDORSEMENT
Attached to Policy No. __________
Issued by
STEWART TITLE GUARANTY COMPANY
The Company insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of:
(1) The invalidity or unenforceability of the lien of the insured mortgage ("mortgage") resulting from the provisions referred to in the mortgage which provide for: (i) the addition of unpaid interest ("accrued interest") to the principal balance of the indebtedness secured by the mortgage; or (ii) the charging of interest (compounding) on accrued interest.
(2) Loss of priority of the lien of mortgage as security for the unpaid principal balance secured by the mortgage (including accrued interest which was added to the principal in accordance with the provisions referred to in the mortgage or interest charged on accrued interest in the manner and at the time referred to in the mortgage) resulting from: (i) the addition of accrued interest to the principal balance of the indebtedness as referred to in the mortgage; or (ii) the charging of interest (compounding) on accrued interest as referred to in the mortgage.
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of the lien of the insured mortgage, to the extent insurance is provided in this Endorsement, but only to the extent provided in the Conditions and Stipulations of the Policy.
This Endorsement does not insure against loss or damage based upon (a) usury, or (b) any consumer credit protection or truth-in-lending law, or (c) any claim by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
The Company agrees that accrued interest which is added to the principal balance of the loan as referred to in the mortgage, and interest charged thereon, shall be considered a part of the indebtedness secured by the mortgage and shall not be subject to Paragraph 8(b) of the Conditions and Stipulations of the Policy. In the event of a loss compensable under this Endorsement, the coverage afforded hereunder is in addition to and not included in the amount of insurance stated in Schedule A of the Policy. Such coverage shall not exceed the sum of $ __________ .
This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.
[Witness clause optional]
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.
For issuing guidelines on this form, see Guidelines.