Page 146 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

ALTA 20-06

First Loss Endorsement

This endorsement is issued when either several parcels serve as security for the debt secured by
the insured mortgage; and/or there exists other collateral, in addition to the land, which serves as
security for the loan. The endorsement gives the lender flexibility in pursuing collection against

different forms of collateral and prevents the title insurer from: (1) forcing the insured to pursue other
remedies first, or (2) arguing that the insured has not suffered a loss. This endorsement allows an

insured to tender a claim under its ALTA Loan Policy when a title related loss has occurred against
one parcel without first requiring acceleration of the underlying debt and foreclosure against all the
Land or other collateral.

Coverage under the endorsement will remain at the full amount of insurance until the total

indebtedness (which indebtedness originally may have exceeded the policy limits) is reduced below
the amount of insurance stated in Schedule A. Thereafter, reduction of indebtedness will reduce the
amount of insurance available on a dollar-for-dollar basis. This endorsement is only available for loan

policies.

Visit us online at: oldrepublictitle.com/ncs 146