NM Lender's Creditor's Rights Endorsement 39

LENDER'S CREDITOR'S RIGHTS ENDORSEMENT

ATTACHED TO POLICY NUMBER

ISSUED BY

STEWART TITLE GUARANTY COMPANY

Paragraph 7 of the Exclusions From Coverage (if the Policy is a Loan Policy or Leasehold Loan Policy) or Paragraph 8 of the Exclusions From Coverage (if the Policy is a Construction Loan Policy) is deleted and the following paragraph is substituted in its place:

Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this Policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:

(a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or

(b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or

(c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure:

(I) to timely record the instrument of transfer; or

(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.

This endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the Effective Date of the Policy and any prior endorsements, not does it increase the face amount thereof.

Signed under seal for the Company, but this Endorsement is to be valid only when it bears an authorized countersignature.