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ALTA 16-06

Mezzanine Financing Endorsement

The ALTA 16 endorsement is issued to a mezzanine lender and is designed for use with the ALTA
Owner’s Policy where the equity interests (100% or some lesser percentage) in the Insured listed in
Schedule A of the policy is being pledged as security for a mezzanine loan. A mezzanine lender is an

individual or entity who secures its loan by a perfected security interest in the equity interests in the
title holding entity under Article 9 of the UCC (and sometimes Article 8 as well), rather than the real

estate itself.

This endorsement assigns to the Mezzanine Lender (as defined in the Endorsement) the right to

receive payments—not to exceed the debt owed to the Mezzanine Lender—otherwise payable to
the insured under the policy, and for that reason, the endorsement requires the signature of an

authorized representative of the Insured, consenting to the assignment of benefits to the Mezzanine
Lender of any loss payable under the Owner’s Policy. The endorsement also provides non-imputation
coverage to the mezzanine lender.

This endorsement is only available for owner’s policies.

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