Page 118 - ALTA Endorsements Guide

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

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ALTA ENDORSEMENT 36.2-06

ENERGY PROJECT – LEASEHOLD – OWNER’S

Adopted (4-2-12)

1. The insurance provided by this endorsement is subject to the exclusions in Section 6 of this
endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in
Schedule B, and the Conditions in the policy.
2. For purposes of this endorsement only:

a. “Constituent Parcel” means one of the parcels of Land described in Schedule A that together
constitute one integrated project.

b. “Electricity Facility” means an electricity generating facility which may include one or more of the
following: a substation; a transmission, distribution or collector line; an interconnection, inverter,
transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower,
pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system,
safety protection facility, road, and other building, structure, fixture, machinery, equipment,
appliance and item associated with or incidental to the generation, conversion, storage, switching,
metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or
conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land
in the locations according to the Plans, that by law constitutes real property.
c. “Evicted” or “Eviction” means (a) the lawful deprivation, in whole or in part, of the right of
possession insured by this policy, contrary to the terms of any Lease or (b) the lawful prevention
of the use of the Land or any Electricity Facility or Severable Improvement for the purposes
permitted by the Lease, in either case as a result of a matter covered by this policy.
d. “Lease” means each lease described in Schedule A.
e. “Leasehold Estate” means the right of possession granted in the Lease for the Lease Term.

f. “Lease Term” means the duration of the Leasehold Estate, as set forth in the Lease, including
any renewal or extended term if a valid option to renew or extend is contained in the Lease.

g. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by
(insert name of architect or engineer) dated ____, last revised ________, designated as (insert
name of project or project number) consisting of ___sheets.
h. “Remaining Term” means the portion of the Lease Term remaining after the Insured has been
Evicted.

i. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in
the locations according to the Plans, that would constitute an Electricity Facility but for its
characterization as personal property, and that by law does not constitute real property because
(a) of its character and manner of attachment to the Land and (b) the property can be severed
from the Land without causing material damage to the property or to the Land.
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 Insured is Evicted, that
value shall consist of (i) the value of (A) the Leasehold Estate for the Remaining Term, (B) any
Electricity Facility existing on the date of the Eviction, and, if applicable, (ii) any reduction in value
of another insured Lease as computed in Section 3(b) below.

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