STG Currency Fluctuation Endorsement (CLTA Standard Coverage Policy-1990) Guideline 3
Explanation:This endorsement is furnished to those who are interested in coverage that would not be diminished because of a decrease of value of the dollar in relation to a specified foreign currency. This endorsement is particularly tailored to the concerns of a foreign investor. The endorsement to be attached to the Loan Policy is designed to be used only if the mortgage secures an indebtedness described in foreign currency.
Underwriting Requirements:(1) The foreign currency to be stated in the endorsement shall be the same as that stated in the mortgage.
(2) The mortgage must state not only the foreign currency but also the equivalent dollar value of such amount as of the date of recording.
(3) The loan documents must specify an objective standard for currency valuation.
(4) Reinsurance must be secured if the amount of the Policy will exceed $26,666,666.00.
(5) Secure Senior Underwriter approval for issuance of the endorsement.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):