Page 95 - 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 29.2-06

INTEREST RATE SWAP - DIRECT OBLIGATION – DEFINED AMOUNT

Adopted (8-1-11)

1. The insurance provided by this endorsement is subject to the exclusions in Section 3 of this
endorsement, the Exclusions from Coverage in the policy, the Exceptions from Coverage contained in
Schedule B, and the Conditions. As used in this endorsement:
a. “Date of Endorsement” is ____________________________.
b. “Swap Obligation” means a monetary obligation under the interest rate exchange agreement
dated , between and the Insured existing at Date
of Endorsement and secured by the Insured Mortgage. The Swap Obligation is included as a
part of the Indebtedness.
c. “Additional Amount of Insurance” is $________________ that is in addition to the Amount of
Insurance stated in Schedule A and is applicable only to loss or damage under this
endorsement.
2. The Company insures against loss or damage sustained by the Insured, not to exceed the Additional
Amount of Insurance, by reason of the invalidity, unenforceability, or lack of priority of the lien of the
Insured Mortgage as security for the payment of the Swap Obligation at Date of Endorsement.
3. This endorsement does not insure against loss or damage, and the Company will not pay costs,
attorneys’ fees, or expenses that arise by reason of:
a. rights or obligations set, created, or confirmed after the Date of Endorsement under a master
interest rate exchange agreement existing on or after Date of Endorsement;
b. the stay, rejection, or avoidance of the lien of the Insured Mortgage as security for the Swap
Obligation, or a court order providing some other remedy, by the operation of federal
bankruptcy, state insolvency, or similar creditors’ rights laws;
c. the calculation of the amount, if any, determined by a court of competent jurisdiction as the
amount of the Swap Obligation [; or]
d. [the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as security
for repayment of the Swap Obligation because all applicable mortgage recording or similar
intangible taxes were not paid; or]

e. [if Date of Endorsement is after Date of Policy, add any necessary additional exceptions here].
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.

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