Page 106 - ALTA Endorsements Guide
P. 106
ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS
ALTA 14.1
Future Advance - Knowledge
The ALTA 14.1 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.
This endorsement is identical to the ALTA 14, except that the ALTA 14.1 includes section 5.e., which
excepts from coverage liens, encumbrances, or other matters, actually known to the insured, and
occurring subsequent to the date of policy and prior to the date of a subsequent Advance. Section
4 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.g.) This endorsement
is only available for loan policies.
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