Page 70 - 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
ALTA 16-06 Endorsement
ENDORSEMENT

Attached to Policy No.
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

1. The Mezzanine Lender is: and each successor in ownership of its loan (“Mezzanine Loan”) reserving,
however, all rights and defenses as to any successor that the Company would have had against the Mezzanine
Lender, unless the successor acquired the indebtedness as a purchaser for value without Knowledge of the asserted
defect, lien, encumbrance, adverse claim, or other matter insured against by this policy as affecting Title.

2. The Insured

a. assigns to the Mezzanine Lender the right to receive any amounts otherwise payable to the Insured under this
policy, not to exceed the outstanding indebtedness under the Mezzanine Loan; and

b. agrees that no amendment of or endorsement to this policy can be made without the written consent of the
Mezzanine Lender.

3. The Company does not waive any defenses that it may have against the Insured, except as expressly stated in this
endorsement.

4. In the event of a loss under the policy, the Company agrees that it will not assert the provisions of Exclusions from
Coverage 3(a), (b) or (e) to refuse payment to the Mezzanine Lender solely by reason of the action or inaction or
Knowledge, as of Date of Policy, of the Insured, provided

a. the Mezzanine Lender had no Knowledge of the defect, lien, encumbrance or other matter creating or causing
loss on Date of Policy.

b. this limitation on the application of Exclusions from Coverage 3(a), (b) and (e) shall
i. apply whether or not the Mezzanine Lender has acquired an interest (direct or indirect) in the Insured either
on or after Date of Policy, and
ii. benefit the Mezzanine Lender only without benefiting any other individual or entity that holds an interest
(direct or indirect) in the Insured or the Land.

5. In the event of a loss under the Policy, the Company also agrees that it will not deny liability to the Mezzanine Lender
on the ground that any or all of the ownership interests (direct or indirect) in the Insured have been transferred to or
acquired by the Mezzanine Lender, either on or after the Date of Policy.

6. The Mezzanine Lender acknowledges

a. that the Amount of Insurance under this policy shall be reduced by any amount the Company may pay under any
policy insuring a mortgage to which exception is taken in Schedule B or to which the Insured has agreed,
assumed, or taken subject, or which is hereafter executed by an Insured and which is a charge or lien on the Title,
and the amount so paid shall be deemed a payment under this policy; and

b. that the Company shall have the right to insure mortgages or other conveyances of an interest in the Land,
without the consent of the Mezzanine Lender.

3 NCS Commercial Endorsement Guide | oldrepublictitle.com/ncs 70