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.
RECHARACTERIZATION ENDORSEMENT
Attached To and Made a Part of
Policy No. __________
Issued By
STEWART TITLE GUARANTY COMPANY
The Company hereby insures the Insured against loss or damage and defense costs that may be sustained by the Insured by reason of a final, non-appealable decree entered by a court of competent jurisdiction finding that the interest of the Insured as created by the Sale/Leaseback Transaction documents is something other than the interest described in Paragraph 3 of Schedule "A" of this policy (the Recharacterization Claim).
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
The obligation of the Company to pay loss or damage or defense costs shall not apply if:
| a. a Court, arbitrator, or other competent tribunal renders a final, non-appealable decision that the estate or interest of the Insured which is insured in Schedule "A" of this policy shall or should be recharacterized as something other than the interest described in Paragraph 3 of Schedule "A" of this Policy, based on the interpretation by the Court, arbitrator or tribunal of the intent of the parties to the documents utilized in the Sale/Leaseback Transaction; or, |
| b. a Court, arbitrator, or other competent tribunal renders a final, non-appealable decision that the estate or interest insured in Schedule "A": of this Policy shall or should be recharacterized as something other than the interest described in Paragraph 3 of Schedule "A" of this Policy because of the actions of the Insured, or any agreements entered into by the Insured which are not disclosed to the Company by the Insured at or prior to the Date of Policy, which are inconsistent with the terms of the documents utilized in the Sale/Leaseback Transaction. |
The total liability of the Company under said policy and under this and any other endorsements thereto shall not exceed, in the aggregate, the amount of liability stated on the face of said policy and costs which the Company is obligated to pay under the Conditions and Stipulations thereof to pay.
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.