Page 90 - 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

FIRST LOSS – MULTIPLE PARCEL TRANSACTIONS ENDORSEMENT
ALTA ENDORSEMENT 20-06

LO Purpose:

The ALTA 20-06 endorsement is typically used when a loan policy is issued for an
amount less than the full indebtedness, which is partially secured by the insured
mortgage and partially secured by other collateral. It may also be issued when the full
amount of the indebtedness is secured by a mortgage on two or more parcels of land.

The ALTA 20-06 endorsement may be issued only with a loan policy.

LLO Coverage Provided:

�O The ALTA 20-06 endorsement gives the insured lender flexibility in pursuing

collection against different forms of collateral and allows an insured lender to
tender a claim under its loan policy when a title related loss has occurred against
one parcel without first requiring acceleration of the underlying debt and
foreclosure against all of the land and other collateral.

b. Coverage under this endorsement will remain at the full insured amount under the
loan policy until the total indebtedness (which originally may have exceeded the
policy limits) is reduced below the amount of insurance stated in Schedule A.
Thereafter, a reduction of indebtedness will reduce the amount of insurance
available on a dollar-for-dollar basis.

LIIO Title Tips:

The collateral given as security for the loan must include land and other collateral or
at least two (2) separate parcels of real property (generally, appurtenant easements
are excluded, and multiple parcels covered by the same improvement would count as
one parcel).

3 NCS Commercial Endorsement Guide | oldrepublictitle.com/ncs 90