Page 126 - ALTA Endorsements Guide

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ALTA ENDORSEMENT 36.5-06

ENERGY PROJECT – COVENANTS, CONDITIONS AND RESTRICTIONS – LAND UNDER
DEVELOPMENT – LOAN

Adopted (4-2-12)

1. The insurance provided by this endorsement is subject to the exclusions in Section 4 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. “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in
effect at Date of Policy.
b. “Electricity Facility” means an electricity generating facility that 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. “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.
d. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to
the Land 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. The Company insures against loss or damage sustained by the Insured by reason of:
a. A violation of a Covenant that:
i. divests, subordinates, or extinguishes the lien of the Insured Mortgage;
ii. results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage;
or
iii. causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the
Indebtedness.
b. A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement,
unless an exception in Schedule B of the policy identifies the violation;
c. Enforced removal of any Electricity Facility or Severable Improvement, as a result of a violation of
a building setback line shown on a plat of subdivision recorded or filed in the Public Records,
unless an exception in Schedule B of the policy identifies the violation; or
d. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable
Covenant relating to environmental protection, describing any part of the Land and referring to
that Covenant, but only to the extent of the violation of the Covenant referred to in that notice,
unless an exception in Schedule B of the policy identifies the notice of the violation.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs,
attorneys' fees, or expenses) resulting from:

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