Page 53 - ALTA Endorsements Guide

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

1-06 to 9.6.1-06 9.7-06 to 17.1-06 17.2-06 to 28.3-06 29-06 to 36.6-06 36.7-06 to 46-06

ALTA ENDORSEMENT 13.1-06

LEASEHOLD – LOAN

Revised (4-2-12)

1. As used in this endorsement, the following terms shall mean:

a. "Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession
insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of
the Land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either
case as a result of a matter covered by this policy.

b. "Lease": the lease described in Schedule A.

c. "Leasehold Estate": the right of possession granted in the Lease for the Lease Term.

d. "Lease Term": 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.

e. "Personal Property": property, in which and to the extent the Insured has rights, located on or affixed
to the Land on or after Date of Policy that by law does not constitute real property because (i) of its
character and manner of attachment to the Land and (ii) the property can be severed from the Land
without causing material damage to the property or to the Land.

f. "Remaining Lease Term": the portion of the Lease Term remaining after the Tenant has been
Evicted.

g. "Tenant": the tenant under the Lease and, after acquisition of all or any part of the Title in
accordance with the provisions of Section 2 of the Conditions of the policy, the Insured Claimant.

h. "Tenant Leasehold Improvements": Those improvements, in which and to the extent the Insured
has rights, including landscaping, required or permitted to be built on the Land by the Lease that
have been built at the Tenant’s expense or in which the Tenant has an interest greater than the
right to possession during the Lease Term.

2. Valuation of Estate or Interest Insured:

If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of
an Eviction of the Tenant, then, as to that portion of the Land from which the Tenant is Evicted, that value
shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold
Improvements existing on the date of the Eviction. The Insured Claimant shall have the right to have the
Leasehold Estate and the Tenant Leasehold Improvements affected by a defect insured against by the
policy valued either as a whole or separately. In either event, this determination of value shall take into
account rent no longer required to be paid for the Remaining Lease Term.

3. Additional items of loss covered by this endorsement:

If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the
Conditions of this policy and thereafter is Evicted, the following items of loss, if applicable to that portion of
the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or
damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title

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