NM FORM 80.2: Mortgage Modification with Additional Amount of Insurance Endorsement (7-1-21)

NM FORM 80.2:  MORTGAGE MODIFICATION WITH ADDITIONAL AMOUNT OF INSURANCE ENDORSEMENT

THIS ENDORSEMENT IS ISSUED AS PART OF POLICY NUMBER ______________________

ISSUED BY
STEWART TITLE GUARANTY COMPANY

1.      For purposes of this endorsement only:

a.      ”Modification”: The agreement between _______ and ________ dated ______ and recorded ________ as document number _______.

b.      “Date of Endorsement”: ____________.

2.         The Amount of Insurance is increased to $_________.

3.      Subject to the exclusions in Sections 4 and 5 of this endorsement, the Exclusions from Coverage, the Exceptions contained in Schedule B, and the Conditions contained in the policy, and any exclusion or exception in any prior endorsement, the Company insures as of the Date of Endorsement against loss or damage sustained by the Insured by reason of any of the following:

a.      The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title as a result of the Modification;

b.      The lack of priority of the lien of the Insured Mortgage over defects in or liens or encumbrances on the Title, except: [Drafting Instruction: Specify additional exceptions, if any];

c.      The failure of the following matters to be subordinate to the lien of the Insured Mortgage: [Drafting Instruction: Specify matters to be insured as subordinate, if any].

4.      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 Modification by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law that is based on the Modification being a:

a.      fraudulent conveyance or fraudulent transfer;

b.      voidable transfer under the Uniform Voidable Transactions Act; or

c.      preferential transfer to the extent the Modification is not a transfer made as a contemporaneous exchange for new value or for any other reason unless the preferential transfer results solely from the failure:

i.       to timely record the Modification in the Public Records after execution and delivery of the Modification to the Insured; or

ii.       of the recording of the Modification in the Public Records to impart notice of its existence to a purchaser for value or to a judgment or lien creditor.

5.      This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, by reason of the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage because all applicable mortgage recording or similar intangible taxes were not paid at time of recording of the Modification.

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.

Date of Endorsement: ______________________