Page 97 - 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

DOING BUSINESS ENDORSEMENT

ALTA ENDORSEMENT 24-06

I. Purpose:

The ALTA 24-06 endorsement is issued when the insured lender does not operate in
the state where the property securing the mortgage is located. This endorsement is
requested by a lender because the ALTA Loan Policy contains a standard exclusion
for loss or damage resulting from the unenforceability of the mortgage lien arising
out of the insured lender’s inability or failure to comply with the doing business laws
of the state where the insured land is located.

The ALTA 24-06 endorsement may be issued only with a loan policy.

II. Coverage Provided:

The ALTA 24-06 Doing Business endorsement insures against a final court decree
prohibiting the enforcement of the lien of the mortgage solely on the grounds that
the loan secured thereby violated the doing business laws of the state in which the
property is located. The endorsement does not, however, insure that the mortgage
lien may be judicially enforced.

III. Title Tips:

The issuance of this endorsement requires (1) the lender is specifically licensed
for this type of transaction in the state in which the land is located; (2) the lender
has been issued an appropriate certificate of authority in the state in which the land
is located; or (3) the lender qualifies under an appropriate statutory grant of
authority or exemption in the state in which the land is located.

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