Page 73 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

Endorsement 10.2
Collateral Assignment
[2021 v. 01.00 (04-02-2024)]

ALTA 10.2 ENDORSEMENT — COLLATERAL ASSIGNMENT
This endorsement is issued as part of
Policy Number __________
issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

1. For purposes of this endorsement only, the following terms mean:
a. “Date of Endorsement” means: _____________________.
b. The “Collateral Assignee” referred to in this endorsement is: ______________________.
c. The “Collateral Assignment” referred to in this endorsement is dated ___________ and recorded on _____________ as document
number ____________ in the Public Records.

2. The Company insures against loss or damage sustained by the Collateral Assignee by reason of:
a. The failure of the Collateral Assignment to assign as collateral for a debt that portion of the lien of the Insured Mortgage specified in the
Collateral Assignment to the Collateral Assignee; and
b. Any modification, partial or full reconveyance, subordination, release, or discharge of the lien of the Insured Mortgage recorded in the
SAMPLE
Public Records other than:
i. those shown in the policy or a prior endorsement; and
ii. the following matters: _________________________________.

[Drafting Instruction: Specify additional exceptions, if any, or “none”.]

3. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, by reason of any claim
that arises out of the transaction creating the Collateral Assignment by reason of the operation of federal bankruptcy, state insolvency, or similar
creditors’ rights law that is based on the Collateral Assignment being a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or
c. preferential transfer.

4. This endorsement is effective provided that, at the Date of Endorsement:
a. the note or notes secured by the lien of the Insured Mortgage have been properly endorsed and delivered to the Collateral Assignee; or
b. if the note or notes are transferable records, the Collateral Assignee has “control” of the single authoritative copy of each “transferable record”
as these terms are defined by applicable electronic transactions laws.

5. The liability of the Company under this endorsement will not exceed the amount of $_____________, along with costs, if any, that the Company
is obligated to pay in accordance with the Conditions; and the total liability of the Company under the policy and any endorsements thereto will not
exceed, in the aggregate, the Amount of Insurance, along with costs, if any, that the Company is obligated to pay in accordance with the Conditions.

[Drafting Instruction: Insert the dollar amount shown in the Collateral Assignment in the blank space above.]

6. By execution below, the Insured named in Schedule A of the policy acknowledges:
a. any payment(s) made under this policy up to the amount specified in Section 5 above will be made to the Collateral Assignee; and
b. any payment(s) made under this endorsement will reduce the Amount of Insurance as provided in Condition 10.

Visit us online at: oldrepublictitle.com/ncs 73