Page 116 - ALTA Endorsements Guide

A L T A E N D O R S E M E N T

1-06 to 9.6.1-06 9.7-06 to 17.1-06 17.2-06 to 28.3-06 29-06 to 36.6-06 36.7-06 to 46-06

m. “Tenant” means the tenant under the Lease or a grantee under the Easement, as applicable, and,
after acquisition of all or any part of the Title in accordance with the provisions of Section 2 of the
Conditions of the policy, the Insured Claimant.
3. Valuation of Title as an Integrated Project:
a. If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the
result of an Eviction, then, as to that portion of the Land from which the Tenant is Evicted, that
value shall consist of (i) the value of (A) the Leasehold Estate or the Easement Interest for the
Remaining Term, as applicable, (B) any Electricity Facility existing on the date of the Eviction,
and, if applicable, (ii) any reduction in value of another insured Lease or Easement as computed
in Section 3(b) below.
b. A computation of loss or damage resulting from an Eviction affecting any Constituent Parcel shall
include loss or damage to the integrated project caused by the covered matter affecting the
Constituent Parcel from which the Insured is Evicted.

c. The Insured Claimant shall have the right to have the Leasehold Estate, the Easement Interest,
and any Electricity Facility affected by a defect insured against by the policy valued either as a
whole or separately. In either event, this determination of value shall take into account any rent
or use payments no longer required to be paid for the Remaining Term.

d. The provisions of this Section 3 shall not diminish the Insured’s rights under any other
endorsement to the policy; however, the calculation of loss or damage pursuant to this
endorsement shall not allow duplication of recovery for loss or damage calculated pursuant to
Section 8 of the Conditions or any other endorsement to the policy.

4. Valuation of Severable Improvements:
a. In the event of an Eviction, the calculation of the loss shall include (but not to the extent that these
items of loss are included in the valuation of the Title determined pursuant to Section 8 of the
Conditions or any other provision of this or any other endorsement) the diminution in value of the
Insured’s interest in any Severable Improvement resulting from the Eviction, reduced by the
salvage value of the Severable Improvement.
b. The policy does not insure against loss or damage (and the Company will not pay any costs,
attorneys’ fees or expenses) relating to:

i. the attachment, perfection or priority of any security interest in any Severable Improvement;
ii. the vesting or ownership of title to or rights in any Severable Improvement;
iii. any defect in or lien or encumbrance on the title to any Severable Improvement; or

iv. the determination of whether any specific property is real or personal in nature.
5. Additional items of loss covered by this endorsement:

If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the
Conditions of the policy and thereafter is Evicted, the following items of loss, if applicable to that
portion of the Land from which the Insured is Evicted shall be included, without duplication, in
computing loss or damage incurred by the Insured, but not to the extent that the same are included in
the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of
Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(iii) of the
Conditions:
a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable
Improvement that the Insured has the right to remove and relocate, situated on the Land at the
time of Eviction, to the extent necessary to restore and make functional the integrated project; (ii)
transportation of that Severable Improvement for the initial one hundred miles incurred in

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