Page 77 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

Endorsement 10.3
Collateral Assignment and Date Down
[2021 v. 01.00 (04-02-2024)]

ALTA 10.3 ENDORSEMENT — COLLATERAL ASSIGNMENT AND DATE DOWN
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;
b. Any liens for taxes or assessments affecting the Title that are due and payable on the Date of Endorsement, except: _________________
________________;
SAMPLE
c. Lack of priority of the lien of the Insured Mortgage over defects, liens, or encumbrances recorded in the Public Records other than:
i. those shown in the policy or a prior endorsement; and
ii. the following matters: __________________________________;
d. Notices of federal tax liens or notices of pending bankruptcy proceedings affecting the Title and recorded in the Public Records subsequent to
the Date of Policy and prior to the Date of Endorsement, except: __________________________________;
e. Any modification, partial or full reconveyance, subordination, release, or discharge of the lien of the Insured Mortgage recorded in the Public
Records other than:
i. those shown in the policy or a prior endorsement; and
ii. the following matters: _________________________________.

[Drafting Instruction: For each of items 2.b through 2.e above, 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 assignment by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’
rights law that is based on the 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 transaction laws.

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