STG Beneficial Interest Endorsement Guideline 1

Explanation:

This endorsement will insure a security interest in or ownership of a beneficial interest of a beneficiary under a trust. That party's interest will be considered personal property, under the law of many states. This endorsement is issued only in Illinois.

Underwriting Requirements:

(1) A Senior Underwriter must approve the issuance of each such endorsement.
(2) We should be furnished with a copy of the trust, any records reflecting assignment of beneficial interests, and any amendments to the trust. We must secure a certification by the trustee or a substitute trustee as to completeness of the documents, the beneficiaries under the trust, any collateral assignments, and the power to direct transfers.
(3) We should review the UCC records, central state tax and federal tax lien records and local records for encumbrances of beneficial interest (general or specific) and assignments thereof.
(4) We should receive a certification from the beneficiaries as to the current ownership and status of ownership.
(5) Issuance of the beneficial interest endorsement to a lender will be more readily approved given the lack of likelihood of loss by reason of incorrectness since the mortgage will exist on the property.
(6) Issuance of a beneficial interest endorsement to an owner will generally not be approved unless issued in connection with any creation of trust.