Page 153 - ALTA Endorsements Guide

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

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ALTA ENDORSEMENT JR2

Revised (8-1-12)

1. This endorsement is subject to the Exclusions from Coverage, the Exceptions contained in
Schedule A and the Conditions in the policy.

2. This endorsement applies if:

a. The Insured's Mortgage creates a valid and enforceable lien on the Title;
b. The borrower named in the Insured's Mortgage ("Borrower") is the owner of the Title at
the date an advance is made pursuant to the note or agreement secured by the Insured's
Mortgage;

c. The Insured's Mortgage secures repayment of future advances; and
d. The policy has been endorsed with an ALTA JR 1.

3. The Company insures against loss or damage sustained by the Insured by reason of:

a. A future advance secured by the Insured's Mortgage not having the same priority over a
Monetary Lien as the Insured’s Mortgage except for the following matters:
i. Ad Valorem taxes or assessments;

ii. Federal tax liens;
iii. Environmental protection liens;

iv. Monetary Liens or claims of lien Known to the Insured prior to the date of an
advance; or

v. Monetary Liens or claims of lien for services, labor, materials or equipment.

b. The invalidity or unenforceability of the lien of the Insured's Mortgage resulting from the
provisions of the Insured's Mortgage which provide for changes in the rate of interest.

c. Loss of priority of the lien of the Insured's Mortgage resulting from changes in the rate of
interest calculated in accordance with the formula provided in the Insured's Mortgage at
the date it is recorded in the Public Records.

4. This Endorsement does not insure:
a. That the Borrower owns the Title nor that the Insured's Mortgage creates a lien on the Title,
nor the validity, enforceability, or priority of the lien of the Insured's Mortgage, except to the
extent expressly stated; nor

b. Against loss or damage resulting from (1) usury, (2) any consumer credit protection or truth
in lending law, or (3) bankruptcy or insolvency proceedings of the Borrower.

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