The minimum premium for this endorsement is $25 .00 on 1-4 family unit residential property with a $100.00 maximum. The premium for this endorsement for commercial and all other properties is a minimum of $100.00 with no maximum.
The first sentence of this endorsement 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 endorsement 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 endorsement.
Subparagraph 1b: Any modification, partial or full reconveyance, release, or discharge of the lien of the insured mortgage recorded on or prior to the date of the endorsement in the public records other than those shown in the policy or a prior endorsement, except for any such instrument identified in the blank space provided at the end of said Subparagraph 1b. (refer to Search Requirements set forth below).
CONDITIONS AS TO EFFECTIVENESS: This endorsement shall not be effective unless at the date of the endorsement: (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 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 assignment by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws that is based on:
- The assignment being deemed a fraudulent conveyance or fraudulent transfer;
- The assignment being deemed a preferential transfer.