CLTA Modification and Additional Advance (06-03-05) 110.10
Attached to Policy No.
STEWART TITLE GUARANTY COMPANY
Upon the representation and assurance by the insured, that the insured has made an additional advance to
in the sum of $__________________________, evidenced by a promissory note for that amount delivered pursuant to a __________________________, "Modification and Additional Advance Agreement" executed by said parties, dated________________, recorded______________________which is secured by the mortgage referred to in Schedule A, the Company hereby insures the insured that by such Modification and Additional Advance Agreement, the mortgage referred to in Schedule A or the obligation secured thereby has been modified and further insures the insured against loss which the insured shall sustain by reason of
(1) Title to the estate or interest referred to in Schedule A, being vested at the date of this endorsement other than as shown in Schedule A except as affected by the following matters:
(2) Priority over the insured mortgage as modified by said Modification and Additional Advance Agreement, insofar as the same secures the indebtedness referred to in the insured mortgage and the additional advance, of any lien or encumbrance existing at the date of this endorsement which is not shown or referred to in Schedule B as prior to the insured mortgage nor excluded from coverage in the Schedules, Conditions and Stipulations or Exclusions from Coverage, except as affected by the following matters:
(3) Any reconveyance, full or partial, or modification (except for said Modification and Additional Advance Agreement) or subordination of the insured mortgage shown by the public records at the date of this endorsement, except for the following matters:
No coverage is given by this endorsement for any claim, which arises out of the transaction evidenced by the Modification and Additional Advance Agreement, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:
(a) such transaction being deemed a fraudulent conveyance or fraudulent transfer; or
(b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or
(c) such transaction being deemed a preferential transfer except where the preferential transfer results from the failure:
(i) to timely record the Modification and Additional Advance Agreement; or
(ii) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor.
The total liability of the Company under the policy and any endorsements therein shall not exceed, in the aggregate, the face amount of the policy, plus the amount of the additional advance, and costs which the Company is obligated under the Conditions and Stipulations thereof to pay.
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.
STEWART TITLE GUARANTY COMPANY
No guidelines are available for this form at this time.