Page 69 - 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

MEZZANINE FINANCING ENDORSEMENT

ALTA ENDORSEMENT 16-06

I. Purpose:

The ALTA 16-06 endorsement is issued in favor of a mezzanine lender as identified in
the A mezzanine lender secures its loan with a pledge of the
ownership interest in the entity that holds title to the insured land and does not have
a direct interest in the insured land.

The ALTA 16-06 endorsement may be issued only with an existing or new owner’s
policy.

II. Coverage Provided:

The ALTA 16-06 endorsement makes the mezzanine lender an assignee of payments
under the owner’s policy in an amount not to exceed the debt owed to the
mezzanine lender and provides non-imputation coverage for matters known to the
Insured but not known to the mezzanine lender.

III. Title Tips:

a. The issuance of this endorsement does not make the mezzanine lender an
additional Insured.

b. Because of the non-imputation coverage provided by the endorsement, a non-
imputation affidavit and indemnification will be required.

c. The Insured must execute the endorsement consenting to assignment of
payment to mezzanine lender. A signature block is provided on the form for the
Insured.

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7 NCS Commercial Endorsement Guide | oldrepublictitle.com/ncs 69