PA 710-6.2 ALTA 6.2-06 Variable Rate Mortgage - Negative Amortization 4-1-07
TIRBOP – PA ENDORSEMENT 710-6.2 (ALTA 6.2-06 VARIABLE RATE/NEGATIVE AMORTIZATION)
ATTACHED TO POLICY NUMBER ______________________
STEWART TITLE GUARANTY COMPANY
File No.: ______________________
The Company insures against loss or damage sustained by the Insured by reason of:
1. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from its provisions that provide for (a) interest on interest, (b) changes in the rate of interest, or (c) the addition of unpaid interest to the principal balance of the loan.
2. Loss or priority of the lien of the Insured Mortgage as security for the principal balance of the loan, including any unpaid interest which was added to principal in accordance with the provisions of the Insured Mortgage, interest on interest, or interest as changed in accordance with the provisions of the Insured Mortgage, which loss of priority is caused by (a) changes in the rate of interest, (b) interest on interest, or (c) increases in the unpaid principal balance of the loan resulting from the addition of unpaid interest.
“Changes in the rate of interest”, as used in this endorsement shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the Insured Mortgage at Date of Policy.
This endorsement does not insure against loss or damage based upon:
1. usury, or
2. any consumer credit protection or truth in lending law.
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.
IN WITNESS WHEREOF, the Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed agent of the Company.
No guidelines are available for this form at this time.