MI Letter Of Credit Endorsement 1
ENDORSEMENT ATTACHED TO AND MADE A PART
OF THE POLICY OF TITLE INSURANCE
STEWART TITLE GUARANTY COMPANY
HEREIN CALLED THE COMPANY
File Number: __________________________
The Company hereby acknowledges that it is informed by the Insured that the Insured mortgage secures, in addition to other obligations, the payment of all obligations of ________________(Borrower) to ___________________(Bank) incurred under the terms of the ________________________as same is defined in the insured mortgage, including, without limitation, any amount due to the Bank as a result of payments made by the Bank under the Letter of Credit as same is defined in the insured mortgage.
The Company further acknowledges that it is informed by the Insured that Irrevocable Letter of Credit No. dated as
of __________________in the aggregate amount of $ __________has been issued by the Bank to _______________
The Company assures that if in fact the insured mortgage secures the payment of all obligations of Borrower to Bank incurred under the terms of the _______________ including, without limitation, any amount due to the Bank as a result of payments made by the Bank under the Letter of Credit, then the coverage provided by the policy as of the Date of Policy includes any payments made by the Bank pursuant to the Letter of Credit.
This endorsement does not insure against loss or damage based upon:
- usury, or
- any consumer credit protection or truth-in-lending law, or
- taxes and assessments which have become a lien subsequent to Date of Policy, or
- any lien or claim of lien for services, labor or material, or
- bankruptcies affecting the estate or interest of the mortgagor(s), or any of them, or
- the loss of priority of future advances of principal indebtedness as a result of taxes, assessments or notice of a federal, state or local tax lien filed against the mortgagor, or
- the loss of priority of future advances of principal indebtedness made after the vestee show in Schedule A is divested as owner of the estate or interest covered by the policy, or
- the loss of priority of future advances of principal indebtedness made during any period in which a declared default exists under the terms of the insured mortgage, or
- the loss of priority of a future advance of principal indebtedness made after the Insured has actual knowledge of the existence of liens, encumbrances or other matters affecting the land described in Schedule A intervening between the Date of the Policy and that future advance, as to such intervening liens, encumbrances or other matters.
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.
Signed under seal for the Company, but this Endorsement is to be valid only when it bears an authorized countersignature.
No guidelines are available for this form at this time.