STG Interest Rate Swap Endorsement 3
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STG Interest Rate Swap Endorsement 3
This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.
SWAP ENDORSEMENT
Attached to Policy No. __________
Issued by
STEWART TITLE GUARANTY COMPANY
The Company insures that the lien of the mortgage described in Schedule A of this Policy secures all sums due under that certain Interest Rate Exchange provided for in the insured mortgage and the Credit Agreement between [borrower swap counterparty (mortgagor)] and [bank swap counterparty (mortgagee)] dated ____________ , 20 _____ . In the event the obligations of Mortgagor under the Interest Rate Exchange Agreement are not secured by the mortgage, the coverage afforded by this Endorsement is in addition to and not included in the amount stated in Schedule A of this Policy. The liability of the Company under this Endorsement shall not exceed the amount of $[enter amount of insurance required by the insured for this coverage, extra premium must be collected for this amount].
THIS ENDORSEMENT MAY NOT BE ISSUED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL
This Endorsement does not insure:
| 1. The priority of the lien of the insured mortgage to secure amounts due under the Interest Rate Exchange Agreement. |
| 2. Nothing in this Endorsement shall be construed as insuring against loss or damage sustained or incurred by reason of the laws relating to usury, bankruptcy, unconscionability or unreasonableness. |
| 3. Nothing in this Endorsement shall be construed as insuring a determination by a court of competent jurisdiction of the amount due the insured, but it does insure that the amount determined by a court of competent jurisdiction is secured by the insured mortgage. |
| [4. That the mortgage or intangible taxes based on the amount of principal indebtedness secured by the mortgage, which were paid when the mortgage was recorded, are sufficient]. |
This endorsement is issued as part of the policy. Except as this endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, (iv) insure against loss or damage exceeding the Amount of Insurance, or (v) increase the Amount of Insurance. To the extent a provision of the policy or any prior 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 any prior endorsement.
[Witness clause]
[Date]
STEWART TITLE GUARANTY COMPANY
By: ______________________________
[Authorized Signatory]
Copyright 1970-2024 Stewart Title Guaranty Company. All rights reserved. The use of this form (or any derivative thereof) is restricted to Stewart Title Guaranty Company, its issuing agents, and affiliates in good standing as of the date of use. All other uses are prohibited.
For issuing guidelines on this form, see Guidelines.