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.
GUARANTY ENDORSEMENT
Attached To and Made a Part of
Policy No. __________
Issued By
STEWART TITLE GUARANTY COMPANY
| The Company has been informed by the insured that certain of the obligations secured by the lien of the insured mortgage consist of a guaranty of the repayment of a loan or loans made, or to be made, to a person or entity other than the mortgagor under the insured mortgage. Subject to the Exclusions from Coverage and the Exceptions from Coverage in Schedule B, the Company agrees as follows: |
1. The insurance provided by this policy respecting the priority of the lien of the insured mortgage as security for the guaranty of payment of any amounts of said loan or loans which are actually disbursed at Date of Policy shall be the identical to that which the policy would provide if the insured mortgage directly secured the repayment of the loan or loans; and
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
1. The Company insures the insured against loss or damage arising from failure of the following assurances to be true:
| Advances made subsequent to the Date of Policy and in accordance with the terms of the Insured Mortgage providing security for revolving credit loan advances pursuant to the Credit Agreement and during the term provided for the revolving credit loan advances will be secured by the Insured Mortgage with the same priority over liens, encumbrances and the rights of purchasers for value without notice that this Policy insures to exist for amounts secured by the Insured Mortgage which were advanced prior to the Date of Policy. |
| The insurance provided by this Endorsement is not subject to Paragraph 3(d) of the Exclusions from Coverage and Paragraph 8(b) of the Conditions and Stipulations of this policy to the extent that it is inconsistent with them. |
| The insurance provided by this Endorsement is subject to the following provisions: |
| a. Every advance purporting to be made pursuant to the Insured Mortgage which, together with all other indebtedness and sums secured by it, exceeds the maximum principal amount to be outstanding at any time as stated in the Insured Mortgage is excluded from the assurances of this Endorsement. |
| b. Losses due to the following matters which arise, occur or attach to the title to the land or affect the Insured Mortgage after Date of Policy are excepted from the insurance provided by this Endorsement: |
| (i) Taxes, assessments, costs, charges, damages and other obligations to the government secured by statutory liens; |
| (ii) The effect of any bankruptcy affecting the estate or interest of the debtors or any present or future holders of any interest in the title to the land; |
| (iii) Liens, encumbrances, conveyances and other matters (can delete in some states only if requested) actually known to the insured prior to the advance; |
| (iv) Mechanic’s and Materialmen’s liens. (Can delete if no recent or contemplated construction only if requested.) |
| (v) (Missouri only) Advances made subsequent to notice of termination unless the lender complies with paragraph 9 of Section 443.0355 Missouri Statutes. |
| The total liability of the Company under said policy and any endorsements thereof shall not exceed, in the aggregate, the Amount of Policy stated in Schedule A and costs, attorneys’ fees and expenses which the Company may become obligated to pay by the terms of the Conditions and Stipulations of this Policy. (LEAVE THIS SPECIFIC LANGUAGE IN) |
| This Endorsement is made a part of the policy and is subject to all the terms and provisions thereof and all endorsements thereto. Except to the extent expressly stated herein, this Endorsement does not modify any of the terms and provisions of the policy and does not change the Date of Policy or increase the Amount of Policy shown in Schedule A. This Endorsement is subject to and does not modify the Exceptions from Coverage in the Policy and terms of any Endorsements to the Policy. (LEAVE THIS SPECIFIC LANGUAGE IN) |
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.