Page 102 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

ALTA 14

Future Advance - Priority

The ALTA 14 endorsement provides a lender with protection against any claim of invalidity or
unenforceability of an insured mortgage arising as a result of provisions contained in the note and/
or loan agreement which the mortgage secures, and which allow for advances to be made after the

recording of the mortgage. The endorsement also provides protection against provisions of the note
or loan agreement which allow payment of interest on interest, the addition of accrued interest to

the principal balance of the loan, or changes in the rate of interest.

The ALTA 14 is the broadest coverage and is only available where state law provides absolute priority

for the additional Advances, regardless of whether the insured lender knows of the intervening
lien(s), encumbrance(s), or other matter(s). It is designed for use in those states in which Advances

will have priority based upon state law imparting priority to Advances. Section 5 of this endorsement
must include any other specific matter that primes the additional Advance under state law, such as
a mechanic’s lien (which is shown as optional item 5.f.). This endorsement is only available for loan

policies.

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