ALTA Endorsement JR 2 (Future Advance) (8-1-12)

ENDORSEMENT

Attached to Policy No. __________

Issued by

STEWART TITLE GUARANTY COMPANY

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.

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.

[Witness clause optional]

STEWART TITLE GUARANTY COMPANY

By: _______________________________________
          Authorized Signatory