Endorsem*nts Explained – Investors Title (2024)

The premium for this endorsem*nt is ten percent (10%) of the premium for the loan policy at the promulgated risk rate with a minimum charge of $25.00 and a maximum charge of $100.00.

This endorsem*nt contains the following affirmative coverage:

Insures against a final judgment or court order that either the lien of the insured mortgage has been terminated or title of the insured acquired through foreclosure or deed in lieu of foreclosure has been defeated as a result of a valid exercise of the right of rescission under the Federal Truth in Lending Act.

This endorsem*nt may only be used with respect to “commercial purpose loans” as defined under the Federal Truth in Lending Act thus exempting the loan from the right of rescission requirements under said Federal Truth in Lending Act. This is a factor which is totally “out of the arena” of issues normally determined by an examination of title and its insurability but rather goes directly to the nature of the loan.

Requests for this endorsem*nt are very rare; however, when received, they generally involve the case in which a borrower is giving a mortgage on the individual’s primary residence to secure a loan for “commercial purposes” (e.g. loan on an individual’s primary residence, the proceeds of which will be used to finance the purchase of inventory for the individual’s business) and the lender wants affirmative coverage that the right of rescission under the Federal Truth in Lending Act does not apply.

If this endorsem*nt is requested, underwriting approval should be obtained, since the issues to be determined in the providing of such coverage are, as indicated, beyond the normal scope of title examination and insurability issues.

The minimum premium for this endorsem*nt is $25.00.

This endorsem*nt may be given with respect to either or both an Owner’s Policy and/or Loan Policy and contains SEVEN (7) forms of affirmative coverage as follows:

1)Paragraph 1 insures that the insured unit together with its common elements is part of a validly created condominium pursuant to the Florida Condominium Act.Therefore, if the Condominium has been validly created and the unit and its common elements properly described, this affirmative coverage may be given.

2)Paragraph 2 insures that the condominium documents comply with the requirements of the Florida Condominium Act to the extent necessary to convey valid title to the insured unit.Therefore, an error in the documents creating the condominium does not prevent providing this affirmative coverage unless such error adversely affects title to the insured unit.

3)Paragraph 3 insures against existing violations of restrictive covenants in the condominium documents which restrict the use of the insured unit and its common elements and that such restrictive covenants do not contain any provisions which will cause a forfeiture or reversion of title.The term “restrictive covenants” as used in this affirmative coverage does not include any covenant, condition or restriction (i) relating to obligations of any type to perform maintenance, repair or remediation on the insured unit or its common elements, or (ii) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances, except to the extent that a notice of a violation or alleged violation affecting the insured unit or its common elements has been recorded in the public records at the date of the policy and is not excepted in Schedule B. As a result of this coverage, it is recommended to confirm with the condominium association that there are no present violations of the restrictions as part of the required confirmation that all assessments are paid in full.

4)Paragraph 4 insures that there are no unpaid condominium assessments as of the date of the policy.Therefore, an estoppel letter from the condominium association confirming that all assessments are paid in full is required to provide this affirmative coverage.

5)Paragraph 5 insures that the insured unit and its common elements are separately assessed for real property taxes.In Florida, once the condominium has been validly created, real property taxes are statutorily assessed as a separate parcel and, therefore, this affirmative coverage may be given.

6)Paragraph 6 insures against the obligation to remove any improvements existing at the date of the policy because of present encroachments.Therefore, if the survey contained in the Declaration of Condominium, as amended by any amendments, reflects that any condominium improvements encroach upon an easem*nt, underwriting approval should be obtained prior to providing this affirmative coverage.

7)Paragraph 7 insures against the failure of title resulting from a right of first refusal to purchase the insured unit which was exercised or could have been exercised at the date of policy.Therefore, if the Declaration of Condominium requires consent to the purchase of the insured unit or a right of first refusal, evidence of compliance with such requirement must be obtained and recorded in order to insure title and provide this affirmative coverage.

The minimum premium for this endorsem*nt is $25.00.

This Endorsem*nt may be used with either anOwner’s Policy or Loan Policyand containsFOUR (4) forms of affirmative coverage, as follows:

1) Paragraph 1 insures against existing violations of any restrictive covenants referred to inSchedule B that restrict the use of the land and that such restrictive covenants do not contain anyprovisions which will cause a forfeiture or reversion of title.The term“restrictive covenants”as used in this affirmative coverage does not include any covenant, condition or restriction (i) relating to obligations of any type to perform maintenance, repair or remediation on the land, or (ii) pertaining to environmental protection of any kind or nature , including hazardous or toxicmatters, conditions or substances, except to the extent that a notice of a violation or alleged
violation affecting the land has been recorded in the public records at the date of the policy andis not excepted in Schedule B. Therefore, if the survey reflects any violation of the restrictivecovenants, underwriting approval is required in accordance with the underwriting guidelinesapplicable to: (i) if the endorsem*nt is being issued on an Owner’s Policy, the guidelinesregarding encroachments and setback violations under the ALTA 9.2-06 Endorsem*nt; or (ii) if theendorsem*nt is being issued on a Loan Policy, the guidelines regarding encroachments and setbackviolations under the ALTA 9-06 Endorsem*nt.

2) Paragraph 2 insures that there are no unpaid charges or assessments due and owing to anyassociation as of the date of the policy.Therefore, an estoppel letter from each associationhaving assessment rights against the land confirming that all assessments are paid in full isrequired to provide this affirmative coverage.

3) Paragraph 3 insures against the forced removal of any existing structure existing on the land atthe date of the policy (other than a boundary wall or fence) because it encroaches onto adjoiningland or onto any easem*nts.Therefore, if the survey reflects an encroachment of any structure ontoadjoining land, underwriting approval is required in accordance with the underwriting guidelines
applicable to: (i) if the endorsem*nt is being issued on an Owner’s Policy, the guidelinesregarding encroachments onto adjoining land under the ALTA 9.2-06 Endorsem*nt; or (ii) if theendorsem*nt is being issued on a Loan Policy, the guidelines regarding encroachments ontoadjoining land under the ALTA 9- 06 Endorsem*nt.

4) Paragraph 4 insures against the failure of title resulting from a right of first refusal topurchase the land which was exercised or could have been exercised at the date of policy.Therefore, if the restrictive covenants require consent by an association to the purchase of theland or a right of first refusal, evidence of compliance with such requirement must be obtained andrecorded in order to insure title and provide thisaffirmative coverage.

The minimum premium for this endorsem*nt is $25.00.

This endorsem*nt is used to insure mortgages which secure notes which contain a variable rate ofinterest.

The endorsem*nt provides TWO (2) forms of affirmative coverage as follows:

1) Paragraph 1 insures the validity or enforceability of the lien of the insured mortgage as a result of its provisions for changes in the rate of interest.

2) Paragraph 2 insures against any loss of the priority of the mortgage as a result of itsprovisions for changes in the rate of interest.

CAUTION: This endorsem*nt may only be given if the recorded mortgage or its rider specificallyprovides for the changes in interest rate and the formula for calculating such changes in interestrate (all FANNIE MAE mortgages with the appropriate rider meets this requirement).

If this endorsem*nt is requested for a commercial transaction and the mortgage or its rider doesnot provide for the changes in the interest rate and contain the formula for calculating suchchanges in interest rate, the endorsem*nt may notbe given.

The minimum premium for this endorsem*nt is $25.00.

This endorsem*nt is used to insure mortgages which secure notes which contain a variable rate ofinterest and a payment which provides for a situation in which the amount of the monthly payment isnot, or may not be, sufficient to cover the payment of interest on the loan and the shortage ininterest is then added to the principal balance of the loan causing “negative amortization”.

The endorsem*nt providesTWO (2)forms of affirmative coverage as follows:

1) Paragraph 1 insures the validity or enforceability of the lien of the insured mortgage as a result of its provisions for changes in the rate of interest, interest on interestand negative amortization.

2) Paragraph 2 insures against any loss of the priority of the mortgage as a result of itsprovisions for changes in the rate of interest, interest on interest and negative amortization.

CAUTION:This endorsem*nt may only be given if the recorded mortgage or its rider specificallyprovides for the changes in interest rate, interest on interest and the formula for calculatingsuch changes in interest rate and specifically provides for negative amortization (all FANNIE MAEmortgages with the appropriate rider meets this requirement).

If this endorsem*nt is requested for a commercial transaction and the mortgage or its rider does not provide for the changes in the interest rate, interest on interest and the formula for calculating such changes in interest rate and specifically provide for negative amortization, the endorsem*nt may not be given.

The minimum premium for this endorsem*nt is $25.00.

This endorsem*nt may be used for either an Owner’s Policy or Loan Policy. The endorsem*nt is necessary in those cases in which the Policy includes not only the land but a manufactured housing unit (mobile home). Since by virtue of this endorsem*nt the mobile home is being insured as part of the land, the deed and/or mortgage must specifically describe both the land and the mobile home by type and serial number and the necessary steps must be taken to make sure that the mobile home is taxed as real property. This will require the issuance of a “RP” tag which confirms that the mobile home is permanently affixed to the real property and taxed as realty.

It is also required that the Certificate of Title for the mobile home be obtained in the name of the insured owner and/or mortgagor in addition to being described in the deed and/or mortgage and any liens or encumbrances noted on the Certificate of Title must be satisfied in the same manner as mortgages and lien encumbering the title to the land.

It is strongly recommended that title to the mobile home be retired as part of the title transfer.

The minimum premium for this endorsem*nt is $25.00.

This endorsem*nt is to be issued only on loan policies insuring either residential or non- residential properties; therefore, the endorsem*nt may not be issued in connection with Owner’s Policies. This endorsem*nt provides affirmative coverage as follows:

Insures against lack of priority of the lien of the insured mortgage over any environmental lien recorded at the date of the policy unless such lien is set forth in Schedule B.

At this time Florida Statutes do not provide for either a “super priority lien” as to environmental matters or any other form of lien unless notice of the lien or of the environmental violation is recorded in the Public Records. Accordingly, this endorsem*nt may be given provided the title search reveals no such recorded notice of lien or environmental violation.

Theminimumpremium for this endorsem*nt is ten percent (10%) of the premium for the loan policyOR,if the loan policy is being issued simultaneously with an Owner’s policy, theminimumpremium is ten percent (10%) of thetotal premiumfor the Owner’s and Loan Policies.

Subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions of the Policy, thisALTA 9-06 Endorsem*ntmay be used to provide affirmative coverage on a Loan Policy against encroachments, set back violations and other matters set forth below. This9-06 Endorsem*ntcontainsEIGHT (8)forms of affirmative coverages as follows:

• Subparagraph 1(a) insures there are no covenants, conditions or restrictions under which the insured mortgage can be divested, subordinated or extinguished or its validity, priority or enforceability impaired. Due to Section 720.3085, Florida Statutes, all loan policies insuring a mortgage subject to homeowner’s assessments executed and recorded after July 1, 2008, must contain the following exception:

“Any loss or damage caused by a lien for homeowner’s association liens pursuant to Section 720.3085, Florida Statutes, notwithstanding assurances to the contrary in the Restrictions, Easem*nts, Minerals Endorsem*nt, if any, attached.”

As to any mortgage executed and recorded prior to July 1, 2008 subject to homeowner’s assessments, in order to provide the coverage under Subparagraph 1(a) of this endorsem*nt it is necessary to confirm that the recorded restrictions do not provide that the lien for assessments is effective as of the date of recording of the restrictions (instead of claim of lien) or that such lien does not otherwise have express priority over the lien of mortgages; otherwise, this coverage must be deleted.

Due to Section 718.116 Florida Statutes, all loan policies insuring a mortgage on a condominium unit must contain the following exception:

“Any loss or damage caused by a lien for condominium assessments pursuant to Section 718.116(5)(a), Florida Statutes, notwithstanding assurances to the contrary in the Restrictions, Easem*nts, Minerals Endorsem*nt, if any, attached.”

• Subparagraphs 1(b)(1),(3),(4) and (5) insure that unless expressly excepted in Schedule B,there are: (a) no present violations of any covenants, conditions or restrictions or violations of building setback lines in such covenants, conditions or restrictions or on the subdivision plat; (b) no encroachments of improvements onto adjoining land or from adjoining land onto insured land; (c) no encroachments of improvements onto to any easem*nt; and (d) no recorded notices of violation of covenants, conditions and restrictions relating to environmental protection.Therefore, if the survey discloses that there is any present violation of setback or other restrictive covenants, conditions or restrictions or any encroachment of existing improvements either onto adjoining land or from adjoining land onto the insured land or into easem*nts, Schedule B must contain a specific exception to such (CAUTION:The survey will generally only show the building setbacks on the subdivision plat; therefore, if the building setbacks are contained in the restrictions, a copy thereof must be provided to the surveyor for adding to the survey). Also, Schedule B must contain a specific exception as to any recorded notice of a violation of any environmental covenant, condition or restriction.
• Subparagraph 1(b)(2) insures that unless expressly excepted in Schedule B,no covenants, conditions or restrictions : (i) establish an easem*nt on the land; (ii) provide for a lien for liquidated damages; (iii) provide for a private charge or assessment; or (iv) provide for an option to purchase, a right of first refusal or the prior approval of a future purchaser or occupant.Therefore, any exception in Schedule B as to any covenant, condition or restriction which contains any of the foregoing provisions must specifically set forth such fact.

• Paragraph 2 insures that any future violation of any existing covenants, conditions or restrictions affecting the property will not result in the invalidity, loss of priority or unenforceability of the lien of the mortgage or result in a loss of title if the insured acquires title in satisfaction of the indebtedness secured by the mortgage.Therefore, if any recorded covenants, conditions or restrictions contain any forfeiture or right of reversion, this coverage must be delete

• Subparagraph 3(a) insures against damage to existing improvements (excluding lawns, shrubbery or trees) which results from the rights of a holder of the easem*nt to maintain the easem*nt for the purposes granted under the easem*nt. Therefore, if an encroachment is of sufficient nature that, in the exercise of the rights under the easem*nt, damages are likely to occur to the improvements on the property, this coverage must be delete (CAUTION:a specific exception to the encroachment in Schedule B isnot sufficientto delete this affirmative coverage).

• Subparagraph 3(b) insures against damage to existing improvements (excluding lawns, shrubbery or trees) as a result of the future exercise of the right to use the surface of the land for the extraction of minerals pursuant to a mineral reservation excepted in Schedule B.Therefore, if the right of entry has not been expressly released or released by statue as to any mineral reservation excepted in Schedule B (excluding the general preprinted mineral exception #6), this coverage must be deleted in the manner hereafter set forth. (CAUTION:a specific exception to the mineral reservation in Schedule B isnot sufficientto delete this affirmative coverage).

• Paragraph 4 insures against a final court order or judgment requiring removal from any land adjoining the insured land of any encroachment excepted in Schedule B.Therefore, if any improvement encroaches onto adjoining land and is of a nature which is not easily removable, this coverage must be delete (CAUTION:a specific exception to the encroachment in Schedule B isnot sufficientto delete this affirmative coverage).

• Paragraph 5 insures against a final court order or judgment denying the right to maintain existing improvements on the land because of a violation of any covenants, conditions or restrictions or violations of the building setback lines in such covenants, conditions or restrictions or on the subdivision plat.Therefore, if any of the existing improvements violate any of the covenants, conditions or restrictions or the building setback lines in such covenants, conditions or restrictions or on the subdivision plat and such violation is not minimal in nature, this coverage must be deleted. (CAUTION:a specific exception to the violation in Schedule B isnot sufficientto delete this affirmative coverage).

Deletion of coverage:In all cases in which a portion of the coverage afforded by this Endorsem*nt must be deleted as indicated above, this should be accomplished by adding to the exception substantially the following phrase:

“Coverage afforded under(insert appropriate Paragraph #)of the Restrictions, Easem*nts, Minerals Endorsem*nt, if any, attached as to this exception is not available and is hereby deleted from said endorsem*nt.”

The applicable Subparagraph # should be inserted in the blank space of the above exception:

Subparagraph 1(a) — As to mortgages recorded prior to July 1, 2008 subject to homeowner’s restrictions or covenants with “super lien priority”

Paragraph 2 — As to any restrictions containing a forfeiture or right of reversion Subparagraph 3(a) — As to damage to improvements which result from encroachments into easem*nts

Subparagraph 3(b) — As to mineral reservations for which the right of entry has not been released

Paragraph 4– As to encroachments onto adjoining land

Paragraph 5– As to violations of restrictions and/or building setbacks

Theminimumpremium for this endorsem*nt is $25 .00 on 1-4 family unit residential property with a $100.00maximum. The premium for this endorsem*nt for commercial and all other properties is aminimumof $100.00 withno maximum.

The first sentence of this endorsem*nt changes the name of the insured under the Loan Policy to the name of the Assignee of the insured mortgage by insertion of the name of such Assignee in the blank space provided for said purpose at the end of said first sentence.

The endorsem*nt affirmatively insures against loss or damage sustained by the Assignee of the insured mortgage by reason of the matters set forth in Subparagraphs 1a. and 1b.as follows:

Subparagraph 1a:Failure of the Assignment of Mortgage described in the blank space provided at the end of Subparagraph 1a. to validly assign the insured mortgage to the Assignee named in the first sentence of the endorsem*nt.

Subparagraph 1b:Any modification, partial or full reconveyance, release, ordischarge of the lien of the insured mortgage recorded on or prior to the dateof the endorsem*nt in the public records other than those shown in the policyor a prior endorsem*nt, except for any such instrument identifiedinthe blankspace provided at the end of said Subparagraph 1b. (refer to SearchRequirements set forth below).

CONDITIONS AS TO EFFECTIVENESS:This endorsem*nt shall not be effective unless at the date of the endorsem*nt: (i) the note or notes secured by the lien of the insured mortgage have been properly endorsed and delivered to the Assignee, or (ii) if the note or notes are transferable records, the Assignee has “control” of the single authoritative copy of each “transferable record” as these terms are defined by applicable electronic transactions laws.

EXCLUSIONS FROM COVERAGE:This endorsem*nt 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 assignment by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws that is based on:

1. The assignment being deemed a fraudulent conveyance or fraudulent transfer;

or

2. The assignment being deemed a preferential transfer.

This endorsem*nt may be used by itself only to insure a modification that: (i) extends the time for repayment; (ii) decreases the interest rate, provided that, if the rate is variable, the cap is not greater the original the original fixed rate; (iii) extends the term; (iv) releases a portion of the secured property; or (v) provides a correction to perfect the lien or comply with the terms of the lender’s original commitment.Since the foregoing modifications under the insurance regulations do not require a premium, there is no premium due for this endorsem*nt.

As to all modifications other than the above, the ALTA 11-06 Mortgage Modification Endorsem*nt cannot be issued unless a separate simultaneous endorsem*nt is issued which: (i) amends the loan policy to update its effective date; (ii) changes the amount of the coverage to the current principal balance; and (ii) amends the exceptions on Schedule B to reflect all matters affecting title since the original or previously amended effective date of the policy.The separate endorsem*nt is required because the ALTA 11-06 Mortgage Modification Endorsem*nt by its printed terms does not change the effective date or amount of the policy. Since, under the insurance regulations, a mortgage modification premium must be paid on the simultaneous endorsem*nt updating the policy, there is no separate premium due for the ALTA 11-06 Mortgage Modification Endorsem*nt.

This endorsem*nt providesTWO (2)affirmative coverages as follows:

• Paragraph 1 insures against the invalidity or unenforceability of the lien of the insured mortgage as modified by the Mortgage Modification Agreement being insured.

• Paragraph 2 insures against lack of priority of the lien of the insured mortgage as of the date of the endorsem*nt over defects in or liens or encumbrances on title except as to those liens, encumbrances or other matters added as exceptions in the blank space provided at the end of the paragraph.

If the ALTA 11-06 Mortgage Modification Endorsem*nt is issued by itself, Paragraph 2 of the endorsem*nt requires that all liens, encumbrances and other matters affecting title recorded after the original or previously amended effective date of the policy must be listed as exceptions in the blank space provided for such purpose at the end of said Paragraph 2. If the ALTA 11-06 Mortgage Modification Endorsem*nt is issued in conjunction with a simultaneous endorsem*nt updating the effective date of the policy and setting forth all matters affecting title since the original or previously amended effective date of the policy, insert the phrase“those defects, liens or encumbrances, if any, set forth on the endorsem*nt updating the policy issued simultaneously with this endorsem*nt”in the blank space at the end of Paragraph 2 of the ALTA 11-06 Mortgage Modification Endorsem*nt.

EXCLUSIONS FROM COVERAGE:This endorsem*nt does not insure against loss or damage (including costs, attorney’s fees or expenses) by reason of any claim that arose out of the transaction creating the modification under federal bankruptcy, state insolvency, or similar creditor’s rights laws based on the modification being deemed either: (i) a fraudulent conveyance or transfer; or (ii) a preferential transfer, except where the preferential transfer results from the failure to timely record the modification or such recordation fails to impart notice to a purchaser for value or to a judgment or lien creditor.

Theminimumpremium for this endorsem*nt is $25.00.

ThisALTA 14-06 Endorsem*ntmay be used to insure the validity and priority of the insured mortgage as security for future advances made pursuant to any mortgage which contains a future advance clause in accordance with Section 697.04, Florida Statutes, the requirements of which are set forth below. The endorsem*nt also amends the standard provisions of the Loan Policy which provide that coverage is reduced as the principal indebtedness is repaid due to amortization by, instead, providing that coverage is based on the balance of the loan irrespective that it may increase or decrease from time to time; and, as a result, it can be used to insure future advances under a mortgage which secures a revolving line of credit. In addition to insuring such future advances, the endorsem*nt further insures that the lien of the mortgage secures interest on said advances even if the rate of interest is subject to change and compounding of interest on interest. The following is a more detailed explanation of theFIVE (5)forms of affirmative coverage provided by the endorsem*nt:

1) Subparagraph 2a. insures against the invalidity or unenforceability of the lien of the insured mortgage as security for advances of principal (including expenses of foreclosure and amounts advanced for taxes and insurance and to assure compliance with laws, protect the lien of the insured mortgage and prevent deterioration of the improvements) made subsequent to the date of the policy pursuant to the terms of the note or loan agreement the repayment of which is secured by the insured mortgage.

• Subparagraph insures against lack of priority of the lien of the insured mortgage as to advances of principal made subsequent to the date of the policy pursuant to the terms of the note or loan agreement the repayment of which is secured by the insured mortgage over any lien or encumbrance on title to the land.

• Subparagraph insures against the invalidity or unenforceability or lack of priority of the lien of the insured mortgage as security for the indebtedness, advances and unpaid interest secured by the insured mortgage resulting from (i) re-advances and repayments of indebtedness,(ii) earlier periods of no indebtedness owing during the term of the insured mortgage, or (iii) failure of the insured mortgage to comply with the requirements of state law to secure future advances.

• Subparagraph 3a. insures against the invalidity or unenforceability of the lien of the insured mortgage resulting from any provisions of the note or loan agreement for (i) interest on interest, (ii) changes in the rate of interest, or (iii) the addition of unpaid interest to the indebtedness.

• Subparagraph insures against lack of priority of the lien of the insured mortgage as security for the indebtedness, including any unpaid interest added to principal in accordance with the note or loan agreement, interest on interest, or interest as changed in accordance with the provisions of the insured mortgage, which lack of priority is caused by (i) changes in the rate of interest, (ii) interest on interest or, (iii) increases in the indebtedness resulting from the addition of unpaid interest.

The term “Changes in the rate of interest” as used in this Endorsem*nt means only those changes in the rate of interest calculated pursuant to a formula provided in the note, loan agreement or insured mortgage at the date of the policy.

REQUIREMENTS:This endorsem*nt may not be given unless the mortgage complies with the future advance requirements of Section 697.04, Florida Statutes,which in substance requires that the mortgage expressly provide that its lien secures not only existing indebtedness, but also future advances, whether such advances are obligatory or to be made at the option of the lender, or otherwise, as are made within20 yearsfrom the date of the mortgage, to the same extent as if such future advances were made at the time of execution of the mortgage and although there may be no advance made at the time of the execution of such mortgage and no indebtedness outstanding at the time an advance is made. The statue further requires that the mortgage expressly specify the maximum amount of indebtedness that may be secured pursuant to the future advance clause and, although the amount of outstanding indebtedness may decrease or increase from time to time, the amount secured by the mortgage may not at any one time exceed the maximum principal amount specified, plus interest thereon.

EXCLUSIONS FROM COVERAGE:This endorsem*nt doesnotinsure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) resulting from:

1. The invalidity, unenforceability or lack of priority of the lien of the insured mortgage as security for any:
   1. Advance made after a Petition for Relief under the Bankruptcy Code (11 U.S.C.) has been filed by or on behalf of the mortgagor; or
   2. Advance made subsequent to 20 years after the date of the insured mortgage or after a notice has been recorded in the Public Records limiting the maximum principal amount that may be secured to the extent the advance causes the outstanding principal balance to exceed the amount stated in the notice.
2. The lien of real estate taxes or assessments arising after the date of the policy;
3. The lack of priority of the lien of the insured mortgage as security for any advance to a federal tax lien, which advance is made after the earlier of (i) actual knowledge of the insured that a federal tax lien was filed against the mortgagor, or (ii) the expiration, after notice of a federal tax lien filed against the mortgagor, of any grace period for making disbursem*nts with priority over the federal tax lien provided in the Internal Revenue Code (26 U.S.C.);
4. Any federal or state environmental protection lien; or
5. Usury or any consumer credit protection or truth-in-lending law.

Theminimumpremium is $25.00 per endorsem*nt on 1-4 family unit residential properties with a $100maximumpremium per endorsem*nt; and on all other properties other than

1-4 family unit residential properties, theminimumpremium for endorsem*nts is $100.00 per endorsem*nt withno maximum.

This endorsem*nt may be issued with respect to either anOwner’s Policy or Loan Policyto insure that the parcels of land described in Schedule A are contiguous to each other and that there are no gaps or gores between said parcels and that, taken as a tract, they constitute one complete parcel of land.

In order to provide this endorsem*nt, the survey or a separate surveyor’s certificate must confirm that the parcels are contiguous and there are no gaps or gores between said parcels.

(CAUTION: Legal descriptions which contain two parcels of land in adjoining sections or adjoining lots in a subdivision plat would seem to be contiguous; however, an actual survey of the land may reveal that a gap exists between the two sections lines due to the original monuments established at the time of the government survey or between the two lots due to an error in the plat.)

Theminimumpremium for this endorsem*nt as to an owner’s policy is ten percent (10%) of the premium for the owner’s policy. Theminimumpremium for this endorsem*nt as to a loan policy is ten percent (10%) of the premium for the loan policyOR, if the loan policy is being issued simultaneously with an owner’s policy, theminimumpremium is ten percent (10%) of the total premium for the owner’s and loan policies.

This endorsem*nt may be given on both anOwner’s Policy and a Loan Policyand applies to those cases in which the insured land is “filled land” in formerly navigable waters such as the Atlantic Ocean or Gulf of Mexico and their various bays and inlets together with various navigable lakes and rivers. Although the owner has good title to the filled land, the United States government, pursuant to the Commerce Clause of the U.S. Constitution, has the right to take any and all action necessary to aid the flow of commerce over the adjacent waterways.

This would include the right to dredge the land and install aids to navigation on the lands, all without any compensation to the owner of the formerly navigable waters.

In such cases, the proposed insured may request issuance of a Florida Navigational Servitude Endorsem*nt. The endorsem*nt specifically insures againstloss or damage from the “forced removal” of improvements in connection with the exercise of these rights.In most cases, the property will be located in an area in which there is little possibility that “forced removal” of improvements will be necessary to aid navigation and the endorsem*nt can be given.

However, if the insured premises are located in an area where dredging of the land, or removal of docks or marinas, may reasonably be necessary to widen a channel or otherwise provide for better navigation, this endorsem*nt cannot be issued. (Example: if the subject property is located on a beach along the shores of the Atlantic Ocean or Gulf of Mexico far away from either an existing channel or inlet, the possibility of the exercise of the rights by the United States would be highly unlikely and the coverage may be given.)

Theminimumpremium is $25.00 per endorsem*nt on 1-4 family unit residential properties with a $100maximumpremium per endorsem*nt; and on all other properties other than 1- 4 family unit residential properties theminimumpremium for endorsem*nts is $100.00 per endorsem*nt withno maximum.

This endorsem*nt is to be given forLoan Policiesonly. This endorsem*nt insures the validity and enforceability as well as the priority of those provisions in the insured mortgage which provide for “shared appreciation interest”. Such interest is defined to mean interest which is calculated pursuant to a formula contained in the insured mortgage which is payable out of the amount, if any, by which the insured land has appreciated in value from and after the date of the mortgage.

This endorsem*nt excludes loss or damage resulting from (i) usury, (ii) any consumer credit protection or truth-in-lending law, or (iii) bankruptcy.

If the formula set forth in the mortgage provides that the shared appreciation is not interest for the making of the loan but rather a payment of some form of profit participation arrangement between the parties, the endorsem*nt may not be issued.

Endorsem*nts which change theDate of PolicyorIncrease the Amountof the Loan Policy are done through issuance of aGeneral Endorsem*nt Formwhich amends the policy to set forth all new matters affecting title since the original or last updated Date of Policy. The premium for these endorsem*nts is determined as follows:

Modification Endorsem*nt (General)

The premium for an endorsem*nt to a loan policy insuring a modification of the mortgage is based upon the substitution loan rate applicable to the outstanding principal balance of the loan. This applies toALLmodifications other than the following “Exempted Modifications”:

• extension of the time for repayment; (2) decrease in the interest rate, provided that, if the rate is variable, the “cap” is not greater than the original “cap” and/or the “cap” is not greater than the original fixed rate; (3) increase in the interest rate,provided the endorsem*nt contains an exception for the loss of priority occasioned by the increase; (4) extension of the term; (5) release of a portion of the secured property; and/or

• modification which provides for a correction to either perfect the lien of the insured mortgage or comply with the terms of lender’s original commitment; (7) future advances made pursuant to 04, F.F. subject to a separateFuture Advance Endorsem*ntpremium; and/or (8) adding of additional parcels to a mortgage securing a revolving line of credit subject to a separateSpreader Endorsem*ntpremium.

Note: As to any mortgage modification which merely constitutes one or more of the Exempted Modifications no premium is due; and, if the insured does not require a change in the Date of Policy, ALTA 11-06 Mortgage Modification Endorsem*nt may be used in lieu of a General Endorsem*nt Form (refer to the underwriting procedures applicable to said ALTA 11-06 Mortgage Modification Endorsem*nt).

Substitution Rate Schedule:

EXAMPLE:

Unpaid Principal Balance of Loan of $100,000 under 3 years old Premium on Unpaid Principal Balance of the Loan Multiplied by Percentage based on age of loan:

Original Issue Rate $575.00

Substitution Rate x30%

Applicable Rate $172.50

Note:Any modification which in addition to any other changes also insures a Future Advance under a non-revolving line of credit mortgage requires an additional premium for the amount of the Future Advance as hereafter indicated.

Future Advance Endorsem*nt (Non-Revolving Line of Credit Mortgage)

The premium for an endorsem*nt to a loan policy insuring a Future Advance under a non- revolving line of credit mortgage is based upon the additional premium for the amount of the Future Advance at the applicable rate category.

Spreader Endorsem*nt (Mortgage Securing a Revolving Line of Credit)

The premium for an endorsem*nt to a loan policy insuring a Mortgage securing aRevolving Line of Creditfor adding additional property is based on the value of the additional property being added.

NOTE:If the insured mortgage does NOT secure a Revolving Line of Credit, the premium due for a modification adding additional property is calculated in accordance with the Substitution Rate Schedule as set forth above plus, if applicable, the premium due for any Future Advance made in conjunction with the addition of the additional property.

All other endorsem*nts issued in other states are prohibited from issuance in Florida including the following:

1. Doing Business Endorsem*nt
2. Non Imputation Endorsem*nt (imputation of knowledge)
3. Access
4. Location
5. Expanded Insured Endorsem*nt
6. Street Assessment Endorsem*nt
7. Zoning Endorsem*nt
8. Usury

There is no premium required for the following endorsem*nts, using the General Endorsem*nt Form, which are permitted without specific approval from the Department of Insurance:

• Endorsem*nts correcting mistakes
• Future Insurance (continuing liability under existing policies)
• Endorsem*nts deleting exceptions which no longer affect title to the land
• Changes in effective dates (Loan Policies Only), provided the endorsem*nt does not insure a mortgage modification requiring a premium (refer to Mortgage Modification Endorsem*nts)
• Insurance against the attempted enforcement of known claims for ascertainable sums of money in reliance on security commensurate with such risk
• Deletion of General Exceptions