STG Letter of Credit Endorsement Guideline 1
Explanation:This endorsement is requested if the mortgage secures a reimbursement agreement executed in connection with the issuance of a letter of credit at the request of the mortgagor. Typically, the letter of credit reimbursement agreement will constitute a mandatory advance that should have priority over subsequent advances or over a subsequent bankruptcy of the mortgagor (according to some cases).
Underwriting Requirements:(1) Review of the reimbursement agreement and related documents to verify that the reimbursement agreement secures the obligations in connection with a current letter of credit issued on behalf of the mortgagor.
(2) The mortgage should reflect that it secures the reimbursement agreement.
(3) A Senior Underwriter must approve 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):