Page 55 - Guide to the Most Requested Commercial Title Insurance Endorsements eBook

ALTA Table of Contents Quick Reference Index

ENDORSEMENT 1 2 3 1 2 3 4 5 6

Aggregation – State Limits – Loan Policy
ALTA 12.1 Endorsement

iv. if a Government Mortgage Agency or Instrumentality is the Insured Claimant, the amount it paid in
the acquisition of the Title or the Insured Mortgage or in satisfaction of its insurance contract or
guaranty relating to the Title or the Insured Mortgage.
b. Fair market value of the Title in Condition 8.a.iii. is calculated using either:
i. the date the Insured acquires the Title as a result of a foreclosure or deed in lieu of foreclosure of
the Insured Mortgage; or
ii. the date the lien of the Insured Mortgage or any assignment set forth in Item 4 of Schedule A is
extinguished or rendered unenforceable by reason of a matter insured against by this policy.
c. If the Company pursues its rights under Condition 5.b. and is unsuccessful in establishing the Title or the
lien of the Insured Mortgage, as insured, the Insured Claimant may, by written notice given to the Company,
elect, as an alternative to the dates set forth in Condition 8.b., to use either the date the settlement, action,
proceeding, or other act described in Condition 5.b. is concluded or the date the notice of claim required by
Condition 3 is received by the Company as the date for calculating the fair market value of the Title in
Condition 8.a.iii.
d. In addition to the extent of liability for loss or damage under Conditions 8.a. and 8.c., the Company will also
pay the costs, attorneys’ fees, and expenses incurred in accordance with Conditions 5 and 7.
6. Condition 10 is restated in its entirety to read:
10. REDUCTION OR TERMINATION OF INSURANCE
a. All payments under this policy, except payments made for costs, attorneys’ fees, and expenses, reduce the
applicable Aggregate Amount of Insurance by the amount of the payment. However, any payment made by
the Company prior to the acquisition of the Title as provided in Condition 2 does not reduce the Aggregate
Amount of Insurance afforded under this endorsement, except to the extent that the payment reduces the
Indebtedness.
b. If this policy insures the Title to Land located in a state identified in Section 3.b. of this endorsement:
i. all payments under this policy, except payments made for costs, attorneys’ fees, and expenses,
reduce the Aggregate Amount of Insurance by the amount of the payment; but
ii. a payment made for loss or damage on Land insured in one of the policies identified in Section 1 on
Land located outside this state does not reduce the Aggregate Amount of Insurance in Section 3.b.
of this endorsement until the Aggregate Amount of Insurance in Section 3.a. is reduced below the
Aggregate Amount of Insurance in Section 3.b.
c. When the Title is acquired by the Insured as a result of foreclosure or deed in lieu of foreclosure, the amount
credited against the Indebtedness does not reduce the Aggregate Amount of Insurance.
d. The voluntary satisfaction or release of the Insured Mortgage terminates all liability of the Company under
this policy, except as provided in Condition 2, but it will not reduce the Aggregate Amount of Insurance for
the other policies identified in Section 1 of this endorsement.
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.

Authorized Signatory

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