SHORT FORM RESIDENTIAL LOAN POLICY  —  ONE-TO-FOUR FAMILY

Issued by

[STEWART TITLE GUARANTY COMPANY]

SCHEDULE A

Date of Policy                       :                                [at a.m./p.m.].

Name of Insured                   :                                                                                                                                              

Name of Borrower(s)           :                                                                                                                                              

Address Reference :                                                                                                                                              

County and State                  :                                                                                                                                              

The estate or interest in the Land identified in this Schedule A and which is encumbered by the Insured Mortgage is fee simple and is, at Date of Policy, vested in the borrower(s) shown in the Insured Mortgage and named above.

The land referred to in this policy is described as set forth in the Insured Mortgage [and on Exhibit “A” attached].

This policy consists of [##] page[s][, including its reverse side,] unless an addendum is attached and indicated below:

   Addendum attached                                                                        No addendum attached

[In lieu of attaching one or more endorsements, endorsements may be incorporated by reference:]

The OTIRO endorsements indicated below, if any, are incorporated in this policy:

[List may include any selection of approved company endorsements, such as the following:]

   ALTA ENDORSEMENT FORM 9.3-06 (Restrictions, Encroachments, Minerals; OTIRO End. 209.3-06)

   ALTA ENDORSEMENT FORM 6-06 (Variable Rate; OTIRO End. 206-06)

   ALTA ENDORSEMENT FORM 6.2-06 (Variable Rate – Negative Amortization; OTIRO End. 206.2-06)

   ALTA ENDORSEMENT FORM 7-06 (Manufactured Housing; OTIRO End. 207-06)

   ALTA ENDORSEMENT 8.1-06 (Environmental Protection Lien; OTIRO End. 208.1-06) referring to the following state statute(s):

        [NONE].

   ALTA ENDORSEMENT 4.1-06 (Condominium, OTIRO End. 204.1-06)

   ALTA ENDORSEMENT 5.1-06 (Planned Unit Development, OTIRO End. 205.1-06)

[Witness clause optional]                                                     [BLANK TITLE INSURANCE COMPANY]

[Authorized signer line optional]

[BY: ______________________________________]

                [President]

[BY: ______________________________________]

                [Secretary]

SUBJECT TO THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B BELOW, AND ANY ADDENDUM ATTACHED HERETO, [BLANK TITLE INSURANCE COMPANY, A _____________ CORPORATION], HEREIN CALLED THE "COMPANY," HEREBY INSURES THE INSURED IN ACCORDANCE WITH AND SUBJECT TO THE TERMS, EXCLUSIONS AND CONDITIONS SET FORTH IN THE AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (6-17-06) – OTIRO Form No PL-05 (Cond. 13 Deleted; Rev. 2-15-18), ALL OF WHICH ARE INCORPORATED HEREIN, EXCEPT THAT THE ARBITRATION PROVISION (CONDITION 13) IS DELETED.  ALL REFERENCES TO SCHEDULES A AND B SHALL REFER TO SCHEDULES A AND B OF THIS POLICY.

SCHEDULE B

EXCEPTIONS FROM COVERAGE AND

AFFIRMATIVE ASSURANCES

Except to the extent of the affirmative insurance set forth below, this policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) which arise by reason of:

1.     Covenants, conditions and restrictions, if any, appearing in the Public Records; however, this policy insures against loss or damage arising from:

(a)   the violation of those covenants, conditions, or restrictions on or prior to Date of Policy;

(b)   a forfeiture or reversion of Title from a future violation of those covenants, conditions, or restrictions, including those relating to environmental protection; and

(c)   provisions in those covenants, conditions, or restrictions, including those relating to environmental protection, under which the lien of the Insured Mortgage can be extinguished, subordinated, or impaired.

As used in paragraph 1(a), the words “covenants, conditions, or restrictions” do not refer to or include any covenant, condition, or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the Land, or (b) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances, except to the extent that a notice of a violation or alleged violation affecting the Land has been recorded or filed in the Public Records at Date of Policy and is not referenced in an addendum attached to this policy.

2.             Any easements or servitudes appearing in the Public Records; however, this policy insures against loss or damage arising from (a) the encroachment, at Date of Policy, of the improvements on any easement, and (b) any interference with or damage to existing improvements, including lawns, shrubbery, and trees, resulting from the use of the easements for the purposes granted or reserved.

3.             Any lease, grant, exception, or reservation of minerals or mineral rights appearing in the Public Records; however, this policy insures against loss or damage arising from (a) any effect on or impairment of the use of the Land for residential one-to-four family dwelling purposes by reason of such lease, grant, exception or reservation of minerals or mineral rights, and (b) any damage to existing improvements, including lawns, shrubbery, and trees, resulting from the future exercise of any right to use the surface of the Land for the extraction or development of the minerals or mineral rights so leased, granted, excepted, or reserved. Nothing herein shall insure against loss or damage resulting from subsidence.

NOTICES, WHERE SENT:  Any notice of claim or other notice or statement in writing required to be given the Company under this policy must be given to the Company at the following address:

[Insert address]

ADDENDUM TO SHORT FORM

RESIDENTIAL LOAN POLICY

[File Number:  ______________ ]                                                                  Addendum to Policy Number:  ___________

SCHEDULE B (Continued)

IN ADDITION TO THE MATTERS SET FORTH ON SCHEDULE B OF THE POLICY TO WHICH THIS ADDENDUM IS ATTACHED, THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPNAY WILL NOT PAY COSTS, ATTORNEYS’ FEES OR EXPENSES) THAT ARISE BY REASON OF THE FOLLOWING:

[List of Additional Schedule B Exceptions]