OKLAHOMA ENDORSEMENT MANUAL - NTIWeb€¦ · © Fidelity National Title Group , Inc. 1 September 2016 OKLAHOMA ENDORSEMENT

© Fidelity National Title Group , Inc. 1 September 2016

OKLAHOMA ENDORSEMENT MANUAL

(includes ALTA Endorsements as of August 1, 2016)

INTRODUCTION

INTRODUCTION TO ENDORSEMENTS

TABLE OF CONTENTS

UNDERWRITING SUPPORT

ENDORSEMENT PREMIUM RATES

MECHANICS LIENS COVERAGE

PENDING DISBURSEMENTS EXCEPTION

OBLIGATORY ADVANCE EXCEPTION

ENDORSEMENT FORMS

This Oklahoma Endorsement Manual is prepared exclusively for the use of employees of licensed title insurance agents and direct operations writing policies on underwriters that are part of the Fidelity National Title Group, Inc. family of title insurance companies. In Oklahoma, those underwriters are: Chicago Title Insurance Company, Commonwealth Land Title Insurance Company, and Fidelity National Title Insurance Company.

http://www.fntgswagency.com/EndorsementForms.aspx


INTRODUCTION TO MANUAL

TABLE OF CONTENTS COVER PAGE ENDORSEMENT PREMIUM RATES

CONFIDENTIALITY OF MANUAL

All materials contained in the Fidelity National Title Group-Oklahoma Endorsement Manual (hereinafter "Manual") are confidential and privileged communications from the FNTG family of underwriters (hereinafter "FNTG") to you. Under no circumstances are the instructions or any other part of this Manual to be given to anyone who is not an employee or agent of FNTG.

USE AND PURPOSE OF THIS MANUAL

This Manual is designed to assist in determination of the types of endorsements available in Oklahoma and when an endorsement may be offered. Title insurance forms and rates are not regulated by the Oklahoma Commissioner of Insurance. The title insurance underwriter may issue any policy or endorsement, and may provide any affirmative coverage if the underwriter determines the risk is insurable. There is only one exception to this practice. The Oklahoma Commissioner of Insurance prohibits affirmative coverage as to surface damages caused by mineral exploration and/or extraction. The endorsement forms found in this Manual represent the forms most often requested by the insured lender and/or owner. These forms have been preprinted for the various FNTG brands it may be found on our website at:

http://www.fntgswagency.com/EndorsementForms.aspx For your convenience, at the top of each endorsement section of the manual, the following link will appear:

Endorsement Forms. If you are viewing this manual from the FNTG website, this link will take you to the location on the website where the endorsement forms may be utilized. If you are requested to issue an endorsement form and it is not in this Manual, contact Regional Underwriting for guidance. The delineated premium rates set forth herein are the suggested rates to be charged for the respective endorsements. Any deviation from the suggested rate must be approved by Regional Underwriting. The use of this Manual does not absolve your responsibility to obtain Policy Overlimits Authorization. Where FNTG policy or guidelines contained herein require approval from Regional Underwriting, such approval must be maintained in the transaction file. FNTG reserves the right to refuse issuance of a policy or endorsement despite adherence to the underwriting guidelines contained herein. If you have any questions, do not hesitate to call Regional Underwriting at 800-442-4303 or 800-292-5320.




TABLE OF CONTENTS COVER PAGE ENDORSEMENT PREMIUM RATES

INTRODUCTION TO ENDORSEMENTS

OKLAHOMA GENERAL OPERATING PARAMETERS

1. No State Promulgated Endorsement Forms

There are no state promulgated title insurance endorsement forms in Oklahoma. With one exception, the underwriter may issue any endorsement form it chooses predicated upon the underwriter’s own risk analysis.

2. Mineral Coverage Prohibited

The only insurance coverage prohibited in Oklahoma is affirmative coverage against damages to improvements/land caused by mineral exploration and/or extraction. This coverage is often referred to as “mineral coverage”. The Oklahoma Commissioner of Insurance has previously determined that such coverage is “casualty insurance”, and may not be provided in a title insurance policy.

3. Utilization of the ALTA Endorsement Forms

The title insurance endorsement forms most often utilized by the underwriter in Oklahoma are the forms adopted and promulgated by ALTA.

4. ALTA Endorsement Forms Are Copyright Protected

The ALTA endorsement forms are copyright protected. Therefore, if a modified version of a particular ALTA endorsement form is issued in Oklahoma, neither “ALTA” or the ALTA "form number" may be utilized in the name of the modified version of the endorsement. The modified endorsement form should not be referred to as, and should not be represented to be an ALTA form.

OKLAHOMA BOTTOM LINE REGARDING ALTA ENDORSEMENTS Subject to the underwriting guidelines of FNTG, all of the current ALTA endorsement forms are available in Oklahoma in their original promulgated version except as noted below:

ALTA Endorsement Oklahoma Equivalent, if any

ALTA 9-06 OK Restrictions and Encroachments (Loan Policy)-06

ALTA 9.7-06 OK Restrictions and Encroachments (Land Under Development-Loan Policy)-06

ALTA 9.10-06 OK Restrictions and Encroachments (Current Violations-Loan Policy)-06

ALTA 14-06 Not Available

ALTA 14.1-06 OK Future Advance (Knowledge)-06

ALTA 14.2-06 OK Future Advance (Letter of Credit)-06

ALTA 14.3-06 OK Reverse Mortgage-06

ALTA 18.1-06 Not Available

ALTA 35-06; 35.1-06; 35.2-06; 35.3-06 Not Available

ALTA 46-06 (Option) Not Available


TABLE OF CONTENTS

OKLAHOMA ENDORSEMENT MANUAL 1

INTRODUCTION TO MANUAL 2

INTRODUCTION TO ENDORSEMENTS 3

TABLE OF CONTENTS 4

OKLAHOMA UNDERWRITING SUPPORT 10

OKLAHOMA PREMIUM RATES (PAGE 1) 11


OKLAHOMA PREMIUM RATES (PAGE3) 13



ALTA ENDORSEMENT FORM 1-06 (Street Assessments) 16

ALTA ENDORSEMENT FORM 2-06 (Truth In Lending) [DECERTIFIED by ALTA 12-1-15] 18

ALTA ENDORSEMENT FORM 3-06 (Zoning-Vacant Land) 19

ALTA ENDORSEMENT FORM 3.1-06 (Zoning-Improved Land) 21

ALTA Endorsement Form 3.2-06 (Zoning-Land Under Development) 23

ALTA ENDORSEMENT FORM 4-06 (Condominium) 26

ALTA ENDORSEMENT FORM 4.1-06 (Condominium) 28

ALTA ENDORSEMENT FORM 5-06 (Planned Unit Development) 30

ALTA ENDORSEMENT FORM 5.1-06 (Planned Unit Development) 32

ALTA ENDORSEMENT FORM 6-06 (Variable Rate) 34

ALTA ENDORSEMENT FORM 6.2-06 (Variable Rate-Negative Amortization) 36

ALTA ENDORSEMENT FORM 7-06 (Manufactured Housing) 38

ALTA ENDORSEMENT FORM 7.1-06 (Manufactured Housing-Loan) 40

ALTA ENDORSEMENT FORM 7.2-06 (Manufactured Housing-Owner) 42

ALTA ENDORSEMENT FORM 8.1-06 (Environmental Protection Lien) 44

ALTA ENDORSEMENT FORM 8.2-06 (Commercial Environmental) 46


TABLE OF CONTENTS (Cont’d.) INTRODUCTION TO ALTA FORM 9 SERIES OF ENDORSEMENTS 48

OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT(LP)-06 49

ALTA ENDORSEMENT FORM 9.1-06 (CCRs-UNIMPROVED LAND- OP) 52

ALTA ENDORSEMENT FORM 9.2-06 (CCRs-IMPROVED LAND- OP) 54

ALTA ENDORSEMENT FORM 9.3-06 (CCRs- LP) 56

ALTA ENDORSEMENT FORM 9.6-06 (PRIVATE RIGHTS- LP) 59

OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (LAND UNDER DEVELOPMENT- LP)-06

61

ALTA ENDORSEMENT FORM 9.8-06 (CCRs- LAND UNDER DEVELOPMENT- OP) 64

ALTA ENDORSEMENT FORM 9.9-06 (Private Rights-Owner's Policy) 67

OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Current Violations-Loan Policy)-06 69

ALTA ENDORSEMENT FORM 10-06 (Assignment of Lien) 72

ALTA ENDORSEMENT FORM 10.1-06 (Assignment and Down Date) 76

ALTA ENDORSEMENT FORM 11-06 (Mortgage Modification) 78

ALTA ENDORSEMENT FORM 11.1-06 (Mortgage Modification) 80

ALTA ENDORSEMENT FORM 11.2-06 (Mortgage Modification With Additional Amount of Insurance) 82

ALTA ENDORSEMENT FORM 12-06 (Mortgagee Aggregation-Tie In) 85

ALTA ENDORSEMENT FORM 12.1-06 (Aggregation-State Limits-Loan) 88

ALTA ENDORSEMENT FORM 13-06 (Leasehold-Owner's) 92

ALTA ENDORSEMENT FORM 13.1-06 (Leasehold-Lender) 99

OK FUTURE ADVANCE ENDORSEMENT (Knowledge)-06 107

OK FUTURE ADVANCE ENDORSEMENT (Letter of Credit)-06 110

OK REVERSE MORTGAGE ENDORSEMENT-06 113

ALTA ENDORSEMENT FORM 15-06 (Non--Imputation-Full Equity Transfer) 116


TABLE OF CONTENTS (Cont’d.)

ALTA ENDORSEMENT FORM 15.1-06 (Non--Imputation-Additional Insured) 121

ALTA ENDORSEMENT FORM 15.2-06 (Non-Imputation-Partial Equity Transfer) 126

ALTA ENDORSEMENT FORM 16-06 (Mezzanine Financing) 131

ALTA ENDORSEMENT FORM 17-06 (Access and Entry) 134

ALTA ENDORSEMENT FORM 17.1-06 (Indirect Access and Entry) 136

ALTA ENDORSEMENT FORM 17.2-06 (Utility Access) 138

ALTA ENDORSEMENT FORM 18-06 (Single Tax Parcel) 140

ALTA ENDORSEMENT FORM 18.2-06 (Multiple Tax Parcel) 142

ALTA ENDORSEMENT FORM 19-06 (Contiguity-Multiple Parcels) 144

ALTA ENDORSEMENT FORM 19.1-06 (Contiguity-Single Parcel) 146

ALTA ENDORSEMENT FORM 20-06 (First Loss) 148

ALTA ENDORSEMENT FORM 21-06 (Creditors' Rights) 150

ALTA ENDORSEMENT FORM 22-06 (Location) 151

ALTA ENDORSEMENT FORM 22.1-06 (Location and Map) 153

ALTA ENDORSEMENT FORM 23-06 (Co-Insurance-Single Policy) [Where FNTG is the Lead Underwriter]

155

ALTA ENDORSEMENT FORM 23-06 (Co-Insurance- Single Policy) [Where FNTG is not the Lead Underwriter]

158

ALTA ENDORSEMENT form 23.1-06 (Co-Insurance-Multiple Policies) 159

ALTA ENDORSEMENT FORM 24-06 (Doing Business) 162

ALTA ENDORSEMENT FORM 25-06 (Same as Survey) 164

ALTA ENDORSEMENT FORM 25.1-06 (Same as Portion of Survey) 166

ALTA ENDORSEMENT FORM 26-06 (Subdivision) 168

ALTA ENDORSEMENT FORM 27-06 (Usury) 170

ALTA ENDORSEMENT FORM 28-06 (Easement-Damage or Enforced Removal) 172

ALTA ENDORSEMENT FORM 28.1-06 (Encroachments-Boundaries and Easements) 174


TABLE OF CONTENTS (Cont’d.) ALTA ENDORSEMENT FORM 28.2-06 (Encroachments-Boundaries and Easements-Described Improvements)

176

ALTA ENDORSEMENT FORM 29-06 (Interest Rate Swap-Direct Obligations) 178

ALTA ENDORSEMENT FORM 29.1-06 (Interest Rate Swap-Additional Interest) 180

ALTA ENDORSEMENT FORM 30-06 (One to Four Family Shared Appreciation Mortgage) 183

ALTA ENDORSEMENT FORM 30.1-06 (Commercial Participation Interest) 185

ALTA ENDORSEMENT FORM 31-06 (Severable Improvements) 187

ALTA ENDORSEMENT FORM 32-06 (Construction Loan-Loss of Priority) 189

ALTA ENDORSEMENT FORM 32.1-06 (Construction Loan-Loss of Priority-Direct Payment) 192

ALTA ENDORSEMENT FORM 32.2-06 (Construction Loan-Loss of Priority-Insured's Direct Payment 195

ALTA ENDORSEMENT FORM 33-06 (Disbursement-Down Date) 195

ALTA ENDORSEMENT FORM 34-06 (Identified Risk Coverage) 200

INTRODUCTION TO ALTA FORM 35 SERIES OF ENDORSEMENTS [Not Available in Oklahoma] 202

ALTA ENDORSEMENT FORM 36-06 (Energy Project-Leasehold/Easement-Owners) 203

ALTA ENDORSEMENT FORM 36.1-06 (Energy Project-Leasehold/Easement-Loan) 207

ALTA ENDORSEMENT FORM 36.2-06 (Energy Project-Leasehold-Owners) 212

ALTA ENDORSEMENT FORM 36.3-06 (Energy Project-Leasehold-Loan) 216

ALTA ENDORSEMENT FORM 36.4-06 (Energy Project-Covenants, Conditions and Restrictions-Land Under Development-Owners)

220

ALTA ENDORSEMENT FORM 36 .5-06 (Energy Project-Covenants, Conditions and Restrictions-Land Under Development-Loan)

223

ALTA ENDORSEMENT FORM 36.6-06 (Energy Project-Encroachments) 226

ALTA ENDORSEMENT FORM 36.7-06 (Energy Project-Fee-Owner) 229

ALTA ENDORSEMENT FORM 36.8-06 (Energy Project-Fee-Loan) 233

ALTA ENDORSEMENT FORM 37-06 (ASSIGNMENT OF RENTS OR LEASES) 237

ALTA ENDORSEMENT FORM 38-06 (MORTGAGE TAX) 239

ALTA ENDORSEMENT FORM. 39-06 (Policy Authentication) 241



ALTA ENDORSEMENT FORM 40-06 (Tax Credit-Owner's Policy) 243

ALTA ENDORSEMENT FORM 40.1-06 (Tax Credit-Defined Amount -Owner's Policy) 243

ALTA ENDORSEMENT FORM 41.1-06 (Water-Improvements) 246

ALTA ENDORSEMENT FORM 41.2-06 (Water-Described Improvements) 253

ALTA ENDORSEMENT FORM 41.3-06 (Water-Land Under Development) 255

ALTA ENDORSEMENT FORM 42-06 (Commercial Lender Group) 258

ALTA ENDORSEMENT FORM 43-06 (Anti-Taint) 261

ALTA ENDORSEMENT FORM 44-06 (Insured Mortgage Recording-Loan) 263

ALTA ENDORSEMENT FORM 45-06 (Pari Passu Mortgage) 265

ADDITIONAL INSURED ENDORSEMENT 268

ASSIGNMENT OF RENTS (LEASES) ENDORSEMENT (Form. B-Contained in A mortgage) 270

BALLOON ENDORSEMENT 272

CONSTRUCTION DOWN DATE ENDORSEMENT 274

COVENANTS RUNNING WITH THE LAND ENDORSEMENT (Shopping Center) 276

CORRECTION ENDORSEMENT-MISCELLANEOUS ERRORS 278

DELETION OF ARBITRATION 280

.

DOWN DATE ENDORSEMENT (LOAN POLICY-NO MODIFICATION) 282

DOWN DATE ENDORSEMENT (OWNER'S POLICY) 284

DOWN DATE ENDORSEMENT (LOAN POLICY-WITH MODIFICATION) 286

ENCROACHMENT-ADJOINING LAND ENDORSEMENT 288

ENCROACHMENT (DESCRIBED IN SCHEDULE B) ENDORSEMENT 291

FOUNDATION ENDORSEMENT (CLTA 102.4) 292

FOUNDATION ENDORSEMENT (Easements; CLTA 102.5) 294



LAST DOLLAR ENDORSEMENT 296

MECHANIC'S LIEN ENDORSEMENT (Insuring Over Specific Mechanic's Lien) 298

MINERAL PRODUCTION-CITY ORDINANCE ENDORSEMENT 300

PERMITTED PARTNERSHIP ENDORSEMENT (Fairway) 302

PRIORITY AFTER PARTIAL RELEASE ENDORSEMENT 304

SOURCE DEED ENDORSEMENT 306

UNUSUAL RISK ENDORSEMENT ("Insuring Over"- CLTA110.2) 308

#MECHANIC’S LIEN COVERAGE 310

PENDING DISBURSEMENTS EXCEPTION 313

OBLIGATORY ADVANCE EXCEPTION 314


OKLAHOMA UNDERWRITING SUPPORT

TABLE OF CONTENTS ENDORSEMENT PREMIUM RATES

Dallas Office 8750 N. Central Expwy., Suite 950

Dallas, Texas 75231 (800) 442-7067 (214) 303-5216

(214) 303-5442 FAX

San Antonio Office

1001 San Pedro, Suite 630 San Antonio, Texas 78216

(800) 292-5320 (210) 366-0889

(210) 377-2926 FAX

Austin Office

3520 Bee Caves Road, Suite 250 Austin, Texas 78746

(512) 823-2814 (512) 306-0989 377-2926 FAX

Stanley E. Keeton SVP and OK Regional Counsel

San Antonio Office (210) 253-7971

(210) 410-3418 Cell

[email protected]

Paul Pruitt VP and Associate Regional Counsel

Austin Office (512) 823-2814

[email protected]

Sheri Asbell VP and OK State Counsel

San Antonio Office (210) 507-8797

[email protected]

Mike Karger VP and Underwriting Counsel

San Antonio office (210) 507-8796

[email protected]

Ann E. Wilbanks AVP and OK Back-up State Counsel

Dallas Office (713) 609-3226;

[email protected]

Regina Shields VP and Underwriting Counsel

Dallas Office (214) 303-5389 direct

[email protected]

Bill Fairbanks VP and Underwriting Counsel

Dallas Office (214) 346-7242 direct

[email protected]

Robert Galperin VP and Underwriting Counsel

Dallas Office (214) 303-5387

[email protected]

Policy Overlimits Request $500,000.00+ (Policy Approval System-PAS Assistance)

Indemnity Requests

Lilly Conner VP and Underwriting Counsel

Dallas Office (214) 965-1978

[email protected]

Indemnity requests should be emailed to:

[email protected]

mailto:[email protected]











FNTG OKLAHOMA ENDORSEMENT PREMIUM RATES (PAGE 1)

Table of Contents Rates(Page 2) Rates (Page 3) Rates (Page 4)

ENDORSEMENT DESCRIPTION MINIMUM PREMIUM

ALTA Form 1-06

Street Assessments (loan) $75

ALTA Form 2-06

Truth in Lending (Loan) DECERTIFIED

ALTA Form 3-06

Zoning-Unimproved Land (Owner/Loan) 20% of BPR ($75 min)

ALTA Form 3.1-06

Zoning-Improved Land (Owner/Loan) 25% of BPR ($75 min)

ALTA Form 3.2-06 Zoning-Land Under Development 25% of BPR ($75 min)

ALTA Form 4-06

Condominium (Loan) 15% of BPR ($75 min)

ALTA Form 4.1-06

Condominium (Owner/Loan) 10% of BPR ($75 min)

ALTA Form 5-06

Planned Unit Development (Loan) 15% of BPR ($75 min)

ALTA Form 5.1-06 Planned Unit Development (Owner-Loan)

15% of BPR ($75 min)

ALTA Form 6-06

Variable Rate (Loan) $75

ALTA Form 6.2-06 Variable Rate-Negative Amortization (Loan)

$75

ALTA Form 7-06

Manufactured Housing (Loan) $75

ALTA Form 7.1-06

Manufactured Housing (Loan) $75

ALTA Form 7.2-06

Manufactured Housing (Owner) $100

ALTA Form 8.1-06 Environmental Protection (Residential Loan)

$25

ALTA Form 8.2-06 Environmental Protection (Commercial Loan) )

$150

ALTA Form 8.2-06 Environmental Protection (Commercial Owner)

10% of BPR ($100 min)

OK R & E (LP)-06 Restrictions and Encroachments (Loan) 10% of BPR ($75 min (Residential)

20% of BPR ($150 min) (Commercial)

ALTA Form 9.1-06 Restrictions and Encroachments (Owner-Unimproved Land)


ALTA Form 9.2-06 Restrictions and encroachments (Owner-Improved Land)

10% of BPR ($75 min) (Residential)


ALTA Form 9.3-06 Covenants, Conditions and Restrictions (Loan Policy)


20% of BPR ($150 min) (Commercial

ALTA Form 9.6-06 Private Rights-Loan Policy 10% of BPR ($75 min) (Residential) 20% of BPR ($150 min) (Commercial)


FNTG

OKLAHOMA ENDORSEMENT PREMIUM RATES (PAGE 2) Table of Contents Rates (Page 1) Rates (Page 3) Rates (Page 4) Rates (Page 5)


OK R & E (Land Under Development- LP)-06

Restrictions and Encroachments (Land Under Development-Loan)

10% of BPR ($75 min) (Residential) 20% of BPR ($150 min) (Commercial)

ALTA Form 9.8-06 Covenants,, conditions and Restrictions (Land Under Development-Owner’s Policy)

10% of BPR ($75 min) (Residential) 20% of BPR ($150 min) (Commercial)

ALTA Form 9.9-06 Private Rights-Owner's Policy 10% of BPR ($75 min) (Residential)


OK R & E (Current Violations-LP)-06

Restrictions and Encroachments (Current Violations-Loan Policy)


20% of BPR ($150 min) (Commercial

ALTA 10.1-06

Assignment of Lien & Down Date (Loan) $150

ALTA Form 11-06 Mortgage Modification 20% of BPR (based on unpaid balance of lien)

($75 min)

ALTA Form 11.1-06 Mortgage Modification-Subordination 20% of BPR (based on unpaid balance of lien)

($75 min)

ALTA Form 11.2-06 Mortgage Modification with Additional Amount of Insurance (Loan)

Full BPR based upon additional amount of insurance ($75 min.)

ALTA Form 12-06

Mortgagee Aggregation-"Tie-In" (Loan) $100

ALTA Form 12.1-06

Mortgagee Aggregation-State Limits-Loan $100

ALTA Form 13-06

Leasehold (Owner) No Charge

ALTA Form 13.1-06

Leasehold (Loan) No Charge

OK Form 14.1-06

Future Advances-Knowledge 15% of BPR ($75 min)

OK Form 14.2-06

Future Advances-Letter of Credit 15% of BPR ($75 min)

OK Form 14.3-06

Reverse Mortgage 15% of BPR ($75 min)

ALTA Form 15-06

Non--Imputation-Full Equity Transfer 20% of BPR ($75 min)

ALTA Form 15.1-06

Non--Imputation-Additional Insured 20% of BPR ($75 min)

ALTA Form 15.2-06

Non-Imputation-Partial Equity Transfer 20% of BPR ($75 min)

ALTA Form 16-06

Mezzanine Financing 20% of BPR ($75 min)

FNTG


OKLAHOMA ENDORSEMENT PREMIUM RATES (PAGE 3) Table of Contents Rates (Page 1) Rates (Page 2) Rates (Page 4) Rights (Page 5)


ALTA Form 17.1-06

Indirect Access and Entry $100

ALTA Form 18-06

Single Tax Parcel $100

ALTA Form 18.2-06

Multiple Tax Parcels [Easement not insured in Schedule A]

$100

ALTA Form 19-06

Contiguity-Multiple Parcels $75

ALTA Form 23-06

Co-Insurance (Owner/Loan) BPR for amount of coinsurance+ endorsements

ALTA Form 23.1-06 Co-Insurance(Multiple Policies)(Loan) BPR for amount of coinsurance+ endorsements

ALTA Form 24-06

Doing Business (Loan) $100

ALTA Form 25-06

Same as Survey (Owner/Loan) $75

ALTA Form 25.01-06

Same as Portion of Survey (Owner/Loan) $75

ALTA Form 26-06

Subdivision (Owner/Loan) 15% of BPR ($75 min)

ALTA Form 27-06

Usury $100

ALTA Form 28-06 Easement-Damage or Enforced Removal (Owner/Loan)

$100

ALTA Form 28.1-06 Encroachments-Boundaries and Easements)

$100

ALTA Form 28.2-06 Encroachments-Boundaries and Easements-Described Improvements

$100

ALTA Form 29-06

Swap Endorsement-Additional Principal 15% of BPR ($150 min)

ALTA Form 29.1-06

Swap Endorsement-Additional Interest 15% of BPR ($150 min)

ALTA Form 30-06

Shared Appreciation-1-4 Family $75

ALTA Form 30.1-06 Commercial Participation Interest $75

ALTA Form 31-06 Severable Improvements Contact Regional Underwriting ($150 min)

ALTA Form 32-06

Construction Loan-Loss of Priority 30% of BPR ($75 min)

ALTA Form 32.1-06 Construction Loan-Loss of Priority-Direct Payment


ALTA Form 32.2-06 Construction Loan-Loss of Priority-Insured's Direct Payment


ALTA Form 33-06

Disbursement-Down Date $75

ALTA Form 34-06 Identified Risk Coverage Contact Regional Underwriting ($75 min.)

ALTA Form 36-06 Energy Project-Leasehold /Easement (Owners)

Contact Regional Underwriting ($150 min.)


FNTG marks or OKLAHOMA ENDORSEMENT PREMIUM RATES (PAGE 4)

Table of Contents Rates (Page 1) Rates (Page 2) Rates (Page 3) Rates (Page 5)


ALTA Form 36.1-06 Energy Project-Leasehold /Easement (Loan)


ALTA Form 36.2-06 Energy Project-Leasehold (Owners) Contact Regional Underwriting ($150 min.)

ALTA Form 36.3-06 Energy Project-Leasehold (Loan) Contact Regional Underwriting ($150 min.)

ALTA Form 36.4-06 Energy Project-CCRs-Land Under Development (Owners)


ALTA Form 36.5-06 Energy Project-CCRs-Land Under Development (Loan)


ALTA Form 36.6-06 Energy Project-Encroachments (OP/LP) Contact Regional Underwriting ($150 min.)

ALTA Form 36.7-06 Energy Project-Fee (OP) Contact Regional Underwriting ($150 min.)

ALTA Form 36.8-06 Energy Project-Fee (LP) Contact Regional Underwriting ($150 min.)

ALTA Form 37-06 Assignment of Rents 0r Leases $75

ALTA Form 38-06 Mortgage Tax $100

ALTA Form 39-06 Policy Authentication $100

ALTA Form 40-06 Tax Credit-Owner’s Policy $100.

ALTA Form 40.1-06 Tax Credit-Defined Amount-Owners Policy $100

ALTA Form 41-06 Water-Buildings(OP/LP) $100

ALTA Form 41.1-06 Water-Improvements (OP/LP) $100

ALTA Form 41.2-06 Water-Described Improvements(OP/LP) $100

ALTA Form 41.3-06 Water-Land Under Development (OP/LP) $100

ALTA Form 42-06 Commercial Lender Group (LP) $100

ALTA Form 43-06 Anti-Taint (LP) $100

ALTA Form 44-06 Insured Mortgage Recording (LP) $100

ALTA Form 45-06 Pari Passu Mortgage (LP) $100

Additional Insured Additional Insured $100

Assignment of Rents (Leases)-Form B

Assignment of Rents (Leases) (Form B-Contained in Mortgage)

$75

Balloon Balloon $75

Construction Down Date Construction Down Date $75

Covenants Running With the Land (Shopping Center)

Covenants Running With the Land 10% of BPR ($75 min)

Correction-Miscellaneous Errors

Correction-Miscellaneous Errors No Charge

Deletion of Arbitration

Deletion of Arbitration No Charge


FNTG OKLAHOMA ENDORSEMENT PREMIUM RATES (PAGE 5)

Table of Contents Rates (Page 1) Rates (Page 2) Rates (Page 3) Rates (Page 4)


Down Date (Owner's Policy)

Down Date-Owner’s Policy 20% of BPR ($75 min.)

Down Date (Loan Policy-No Modification)

Down Date-Loan Policy-No Modification 20% of BPR ($75 min.)

Down Date (Loan Policy With Modification)

Down Date with Modification 20% of BPR plus full BPR as to any increase in the policy amount ($75 min)

Down Date (Loan Policy With Modification)

Down Date with Modification 20% of BPR plus full BPR as to any increase in the policy amount ($75 min)

Encroachments-Adjoining Land

Encroachment- Adjoining Land $100 to 30% of BPR depending upon risk

Encroachment (Described in Schedule B)

Encroachment-Described in Schedule B 10% o BPR ($75 min.)

Last Dollar

Last Dollar- this endorsement is no longer necessary when the issuing the 2006 ALTA Loan Policy

Foundation (CLTA 102.4)

Foundation 10% of BPR ($75 min.)

Foundation (Easements-CLTA 102.5)

Foundation-Easements 10% of BPR ($75 min.)

Mechanics' Liens Mechanics' Liens (Insuring Over Specific Lien)

$100 to 30% of BPR depending upon risk

Mineral Production-City Ordinance

Mineral Production-City Ordinance $150

Permitted Partnership Transfer (Fairway)

Permitted Partnership Transfer (Fairway) 10% of BPR ($75 min.)

Priority After Partial Release

Priority After Partial Release $75

Source Deed

Source Deed $75

Unusual Risk (Insuring Over-CLTA 110.2)

Unusual Risk (Insuring Over-CLTA 110.2) $75 to 30% of BPR depending upon risk


Table of Contents Endorsement Forms

ALTA ENDORSEMENT FORM 1-06 (Street Assessments)

Purpose: Provides the insured lender with coverage against loss or damage by reason of the loss of priority of the insured mortgage over an assessment lien for street improvements either currently under construction, or completed but not yet paid.

Policy To Be Endorsed: Loan Policy

Suggested Premium:

$75.00

Underwriting Requirements: You must be satisfied based upon a special search with the city or other appropriate jurisdiction, that there are no special assessments owing for street improvements and there are no street improvements currently under construction that might give rise to an assessment lien. The endorsement may be issued under the following circumstances: 1. Access to the Land is by a private

easement in the land or easement does not adjoin a public street or generally benefited area.

2. At Date of Policy, there are no street improvements under construction or recently completed which could generate a later assessment Lien.

3. The Insured Mortgage is recorded prior to the commencement of work on new subdivision streets or other streets adjoining the Land or in the generally benefited area.

4. All street improvements are currently complete and you have determined that the assessments for them have been fully paid.

5. The lien securing the street assessments attaches to the title to the land after the Insured Mortgage is recorded and does not relate back to a prior point in time. While this is a possibility, it is very unlikely. The law usually gives governmental units’ assessment liens the same priority as real estate tax liens. Therefore, before proceeding on this basis, you must obtain the approval of Regional Underwriting.

SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 1-06 (Street Assessments) (6/17/06)

ENDORSEMENT Attached to Policy No.__________

Issued By [FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of the lack of priority of the lien of the Insured Mortgage over the lien of any assessments for street improvements under construction or completed at Date of Policy. 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. Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory

Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in

good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association



ALTA ENDORSEMENT FORM 2-06 (Truth In Lending) This endorsement was decertified by ALTA effective December 1, 2015 and is no longer available.




ALTA ENDORSEMENT FORM 3-06 (Zoning- Vacant Land)

Purpose: This endorsement insures the zoning classification of the property and lists the uses allowed under said classification. It also insures against loss if any of those uses are prohibited by a court order that invalidates the zoning ordinance. However, it does not insure against losses suffered because the Land cannot be sold or mortgaged due to any zoning problem. This endorsement is appropriate for both vacant

and improved land.

Policy To Be Endorsed: Owners Policy

Loan Policy

Suggested Premium: 20% of BPR ( min. $75.00)

Underwriting Requirements: 1. This endorsement constitutes an extra

hazardous risk. Regional underwriting approval is required.

2. A review of the planning and zoning maps and ordinances must verify the zoning status and permitted use of the property as expressed in the endorsement.

3. Company must be furnished with an acceptable written opinion from an attorney approved by the company, directed to the company and advising of the validity of the zoning ordinance, the zoning classification, and the uses allowed. The attorney’s opinion must address the following matters: a. The constitutionality of the

ordinance or resolution under the federal and state constitutions;

b. The compliance with all state laws in the process of the adoption of the ordinance or resolution with respect to the land being insured; and

c. The susceptibility of the ordinance to attack because it constitutes spot zoning, contract zoning, or zoning that violates some public policy.

Note: The requirement of an attorney’s opinion may be waived by Regional Underwriting on a case by case basis. Generally, a certificate from a zoning or planning authority or a letter from a municipality is not a sufficient basis for the issuance of the endorsement.

You should be very careful when completing paragraph 1 of the endorsement, as the endorsement insures against loss or damage: (i) if the Land is not classified under the zoning classification delineated in 1 a; or (ii) if the specified use in 1 b is not allowed.




ALTA ENDORSEMENT FORM 3-06 (Zoning - Unimproved Land) (6/17/06)



1. The Company insures against loss or damage sustained by the Insured in the event that, at Date of Policy: a. According to applicable zoning ordinances and amendments, the Land is not classified Zone _____________; b. The following use or uses are not allowed under that classification: ____________________. 2. There shall be no liability under this endorsement based on a. Lack of compliance with any conditions, restrictions, or requirements contained in the zoning ordinances and amendments, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. This paragraph 2.a. does not modify or limit the coverage provided in Covered Risk 5. b. The invalidity of the zoning ordinances and amendments until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses. c. The refusal of any person to purchase, lease or lend money on the Title covered by this policy. 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. Dated: ________________ [Title Agent] By: ______________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 3.1-06 (Zoning- Improved Land)

Purpose: The ALTA Form 3.1-06 endorsement provides the same coverage as the ALTA Form 3-06, and is subject to the same limitations. It also insures against losses from court orders which (i) prohibit use of the Land for specified purposes allowed by the zoning because certain physical characteristics of the Land violate the ordinance; and (ii) require removal or modification of the structure located on the Land due to said violations. The ALTA Form 3.1-06 is appropriate for policies covering

improved property.

Policy To Be Endorsed: Owner’s Policy

Loan Policy

Suggested Premium: 25% of BPR (min. $75.00)

Underwriting Requirements: 1. Zoning insurance constitutes an extra

hazardous risk. Regional Underwriting approval is required.

2. Same requirements as for the ALTA Form 3-06 but in addition:

A current and acceptable survey and the attorney’s opinion must verify there are no violations of the zoning ordinance as of the date of the policy based upon the improvements located on the land with respect to (i) area; (ii) floor space; (iii) height or set back violations; or (iv) number of parking spaces.

Note: The requirement of an attorney’s opinion may be waived by Regional Underwriting on a case by case basis. Generally, a certificate from a zoning or planning authority or a letter from a municipality is not a sufficient basis for issuance of the endorsement.

You should be very careful when completing paragraph 1 of the endorsement, as the endorsement insures against loss or damage: (i) if the Land is not classified under the zoning classification delineated in 1 a; or (ii) if the specified use in 1 b is not allowed. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 3.1-06 (Zoning- Completed Structure) (Rev. 10/22/09)



1. The Company insures against loss or damage sustained by the Insured in the event that, at Date of Policy: (a) according to applicable zoning ordinances and amendments, the Land is not classified Zone . (b) the following use or uses are not allowed under that classification: . (c) There shall be no liability under paragraph 1.b. if the use or uses are not allowed as the result of any lack of compliance with any conditions, restrictions, or requirements contained in the zoning ordinances and amendments, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. This paragraph 1.c. does not modify or limit the coverage provided in Covered Risk 5. 2. The Company further insures against loss or damage sustained by the Insured by reason of a final decree of a court of competent jurisdiction either prohibiting the use of the Land, with any existing structure, as specified in paragraph 1.b. or requiring the removal or alteration of the structure, because, at Date of Policy, the zoning ordinances and amendments have been violated with respect to any of the following matters: (a) Area, width or depth of the Land as a building site for the structure; (b) Floor space area of the structure; (c) Setback of the structure from the property lines of the Land; (d) Height of the structure; or (e) Number of parking spaces. 3. There shall be no liability under this endorsement based on: (a) the invalidity of the zoning ordinances and amendments until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses; (b) the refusal of any person to purchase, lease or lend money on the Title covered by this policy. 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. Dated: ________________ [Title Agent] By: ______________________________________________

Authorized Signatory

Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association



ALTA ENDORSEMENT FORM 3.2-06 (Zoning- Land Under Development)

Purpose: The ALTA Form 3.2-06 endorsement makes the coverage available in the ALTA Form 3.1-06 available for Land on which proposed buildings are to be built or constructed, if the proposed building is built or constructed according to site and elevation "Plans” identified in the endorsement (Paragraph

1b).


Loan Policy


Underwriting Requirements: 3. Zoning insurance constitutes an extra

hazardous risk. Regional Underwriting approval is required.

4. Same requirements as for the ALTA Form 3.1-06 but in addition:

An analysis of the zoning ordinance or resolution, and any of the site and elevation "Plans" identified in paragraph number 1b of the endorsement is required to determine any restrictions, with respect to (i) area, width or depth of the Land has a building site for the improvements to be built or constructed on yet; (ii) floor space area of the proposed improvements on the Land; (iii) height of the proposed improvements on the Land or set back violations; or (iv) number of parking spaces to be striped.

If the ordinance or resolution contain

any or all such restrictions, you must verify that the site and elevation plans identified in paragraph 1b of the endorsement are in compliance with those restrictions.

You should be very careful when completing paragraph 2a of the endorsement, as the endorsement insures against loss or damage: (i) if the Land is not classified under the zoning classification delineated in 2 a; or (ii) if the specified use in 1 b is not allowed. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 3.2-06 (Zoning- Land Under Development) (Rev. 4/2/12)



1. For purposes of this endorsement:

a. “Improvement” means a building, structure, road, walkway, driveway, curb, subsurface utility or water well

existing at Date of Policy or to be built or constructed according to the Plans that is or will be located on the Land, but excluding crops, landscaping, lawns, shrubbery, or trees.

b. “Plans” means those site and elevation plans made by [name of architect or engineer] dated ____, last revised ________, designated as [name of project] consisting of ___sheets.

2. The Company insures against loss or damage sustained by the Insured in the event that, at Date of Policy

a. according to applicable zoning ordinances and amendments, the Land is not classified Zone

_____________________;

b. the following use or uses are not allowed under that classification:

c. There shall be no liability under paragraph 2.b. if the use or uses are not allowed as the result of any lack of compliance with any condition, restriction, or requirement contained in the zoning ordinances and amendments, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. This paragraph 2.c. does not modify or limit the coverage provided in Covered Risk 5.

3. The Company further insures against loss or damage sustained by the Insured by reason of a final decree of

a court of competent jurisdiction either prohibiting the use of the Land, with any existing Improvement, as specified in paragraph 2.b. or requiring the removal or alteration of the Improvement, because of a violation of the zoning ordinances and amendments in effect at Date of Policy with respect to any of the following matters:

a. Area, width, or depth of the Land as a building site for the Improvement

b. Floor space area of the Improvement

c. Setback of the Improvement from the property lines of the Land

d. Height of the Improvement, or

e. Number of parking spaces.

4. There shall be no liability under this endorsement based on:

a. the invalidity of the zoning ordinances and amendments until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses;

b. the refusal of any person to purchase, lease or lend money on the Title covered by this policy.



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. Dated: ________________ [Title Agent] By: ______________________________________________


ALTA ENDORSEMENT FORM 3.2-06 (Zoning- Land Under which Development Land ) (Rev. 4/2/12)




ALTA ENDORSEMENT FORM 4-06 (Condominium)

Purpose: This endorsement provides affirmative insurance to mortgage lenders loaning on the security of condominium units. There are seven matters selected for insurance in this endorsement This endorsement is designed to be issued only after considering the relevant aspects of the condominium project in which the unit exists. If the underwriting requirements contained herein cannot be met, you must either decline to issue this endorsement or offer to issue a modified version deleting one or more insuring clauses. The ALTA 4.1-06 differs from the ALTA 4-06 only in that there is no insurance of priority over future assessments in paragraph 4 of the endorsement. Thus, the 4.1-06 is appropriate for use in states where insured second mortgages do not have priority, or where first mortgages are primed by certain

assessments.



Underwriting Requirements: A review of the condominium declaration must verify:

1. The condominium regime is in

compliance with the state condominium statutes and the unit to be insured, along with the applicable common elements, ares in fact part of the condominium regime.

2. There are no violations of any CCRs affecting the unit or the common elements and there are no provisions in the declaration calling for a forfeiture or reversion of title for violation of CCRs.

3. Any lien securing the payment of charges and assessments provided for in the declaration is subordinate to the insured mortgage lien.

4. The unit is, or is capable of, being assessed as a separate parcel for real property tax purposes.

5. There are no encroachments by the unit onto another unit (or the common elements), or by the common elements onto any of the units.

6. There is no right of first refusal to purchase contained in the declaration, or if there is, it has been fully complied with.




ALTA ENDORSEMENT FORM 4-06 (Condominium) (Rev. 02/03/10)


Issued by [FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of: 1. The failure of the unit identified in Schedule A and its common elements to be part of a condominium within the meaning of the condominium statutes of the jurisdiction in which the unit and its common elements are located. 2. The failure of the documents required by the condominium statutes to comply with the requirements of the statutes to the extent that such failure affects the Title to the unit and its common elements. 3. Present violations of any restrictive covenants that restrict the use of the unit and its common elements and that are contained in the condominium documents or the forfeiture or reversion of Title by reason of any provision contained in the restrictive covenants. As used in this paragraph 3, the words “restrictive covenants” do not refer to or include any covenant, condition, or restriction (a) relating to obligations of any type to perform maintenance, repair, or remediation on the Land, or (b) 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 Land has been recorded in the Public Records at Date of Policy and is not excepted in Schedule B. 4. The priority of any lien for charges and assessments provided for in the condominium statutes and condominium documents at Date of Policy over the lien of any Insured Mortgage identified in Schedule A. 5. The failure of the unit and its common elements to be entitled by law to be assessed for real property taxes as a separate parcel. 6. Any obligation to remove any improvements that exist at Date of Policy because of any present encroachments or because of any future unintentional encroachment of the common elements upon any unit or of any unit upon the common elements or another unit. 7. The failure of the Title by reason of a right of first refusal to purchase the unit and its common elements that was exercised or could have been exercised at Date of Policy. 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. Dated: ________________ [Title Agent] By: ______________________________________________






ALTA ENDORSEMENT FORM 4.1-06 (Condominium)

Purpose: This endorsement provides affirmative insurance to lenders and owners of condominium units. The ALTA 4.1-06 differs from the ALTA 4-06 only in that there is no insurance of priority over future assessments in paragraph 4 of the endorsement. Thus, the 4.1-06 is appropriate for use in states where insured second mortgages do not have priority, or where first mortgages are primed by certain assessments. The ALTA 4.1-06 is also the appropriate form to be used with and Owner's Policy This endorsement is designed to be issued only after considering the relevant aspects of the condominium project in which the unit you exists. If the underwriting requirements presented herein cannot be met, you must either decline to issue this endorsement or offer to issue a modified version of the one

or more ensuring clauses.

Policy To Be Endorsed: Owner's Policy Loan Policy


Underwriting Requirements: A review of the condominium declaration must verify: 1. The condominium regime is in

compliance with the state condominium statute and the unit to be insured, along with the applicable common elements, is in fact part of the condominium regime.

2. There are no violations of any CCRs affecting the unit or the common elements and there are no provisions in the declaration calling for a forfeiture or reversion of title for violation of CCRs.

3. The unit is, or is capable of being assessed as a separate parcel for real property tax purposes.

4. There are no encroachments by the unit onto another unit (or the common elements), or by the common elements onto any of the units.

5. There is no right of first refusal to purchase contained in the declaration, or if there is, it has been fully complied with.

6. You must determine that all charges or assessments provided for in the condominium statutes and condominium documents, which are due, have been paid. If there is a ground lease or recreation lease which the unit owner or Association is obligated to pay, you must determine that all charges or current.




ALTA ENDORSEMENT FORM 4.1-06 (Condominium) (Rev. 10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of: 1. The failure of the unit identified in Schedule A and its common elements to be part of a condominium within the meaning of the condominium statutes of the jurisdiction in which the unit and its common elements are located. 2. The failure of the documents required by the condominium statutes to comply with the requirements of the statutes to the extent that such failure affects the Title to the unit and its common elements. 3. Present violations of any restrictive covenants that restrict the use of the unit and its common elements and that are contained in the condominium documents or the forfeiture or reversion of Title by reason of any provision contained in the restrictive covenants. As used in this paragraph 3, the words “restrictive covenants” do not refer to or include any covenant, condition, or restriction (a) relating to obligations of any type to perform maintenance, repair, or remediation on the Land, or (b) 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 Land has been recorded in the Public Records at Date of Policy and is not excepted in Schedule B. 4. Any charges or assessments provided for in the condominium statutes and condominium documents due and unpaid at Date of Policy. 5. The failure of the unit and its common elements to be entitled by law to be assessed for real property taxes as a separate parcel. 6. Any obligation to remove any improvements that exist at Date of Policy because of any present encroachments or because of any future unintentional encroachment of the common elements upon any unit or of any unit upon the common elements or another unit. 7. The failure of the Title by reason of a right of first refusal to purchase the unit and its common elements which was exercised or could have been exercised at Date of Policy. 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.

Dated: ________________ [Title Agent] By: _______________________________________ Authorized Signatory




ALTA ENDORSEMENT FORM 5-06 (Planned Unit Development)

Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) present violations of CCRs and/or the reversion or forfeiture of title resulting therefrom; (ii) the priority of any lien for assessments and charges over the insured mortgage lien; (iii) the forced removal of any existing structures (other than a boundary wall or fence) on the land that encroach onto adjoining land or onto any easements; (iv) the failure of title resulting from a right of

first refusal to purchase the land.



Underwriting Requirements: A review of the CCRs and a current and acceptable survey must verify: 1. There are no violations of any CCRs

affecting the property, and there are no provisions calling for a forfeiture or reversion of title for violation of CCRs.

2. Any lien securing the payment of charges and assessments provided for in the CCRs is subordinate to the insured mortgage lien. Generally, a lien for assessments is subordinate to only a first lien mortgage.

3. There are no encroachments of existing improvements (other than a boundary wall or fence) on the land onto adjoining land or onto any easements.

4. There is no right of first refusal to purchase contained in the restrictive covenants, or if there is, it has been fully complied with.

NOTE: If there is an encroachment and you do not intend to provide affirmative coverage in the endorsement as to the encroachment, taking exception to the encroachment in Schedule B alone may not be sufficient to negate the affirmative coverage. Some of the insuring provisions of this endorsement may need to be deleted or modified. Contact Regional Underwriting for guidance.




ALTA ENDORSEMENT FORM 5-06 (Planned Unit Development) (Rev. 02/03/10)



The Company insures against loss or damage sustained by the Insured by reason of: 1. Present violations of any restrictive covenants referred to in Schedule B that restrict the use of the Land or the forfeiture or reversion of Title by reason of any provision contained in the restrictive covenants. As used in paragraph 1, the words “restrictive covenants” do not refer to or include any covenant, condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the Land, or (b) 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 Land has been recorded in the Public Records at Date of Policy and is not excepted in Schedule B. 2. The priority of any lien for charges and assessments in favor of any association of homeowners that are provided for in any document at Date of Policy and referred to in Schedule B over the lien of any Insured Mortgage identified in Schedule A. 3. The enforced removal of any existing structure on the Land (other than a boundary wall or fence) because it encroaches onto adjoining land or onto any easements. 4. The failure of the Title by reason of a right of first refusal to purchase the Land that was exercised or could have been exercised at Date of Policy. 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. Dated: ________________ [Title Agent] By: ______________________________________________






ALTA ENDORSEMENT FORM 5.1-06 (Planned Unit Development)

Purpose: Same as the ALTA 5-06 except that the ALTA Form 5.1-06 does not provide insurance of priority over future assessments in paragraph 2; instead it only covers unpaid assessments as of Date of Policy. That is, it insures against loss by reason of the delinquency at Date of Policy of any charges or assessments provided for in any recorded document shown in Schedule B. In that regard, the ALTA Form 5.1-06 is appropriate for use where the agreement or statute do not allow insurance of priority of the insured mortgage. The ALTA 5.1-06 is also the appropriate form for use with and Owner's

Policy.

Policy To Be Endorsed: Owner’s Policy Loan Policy


Underwriting Requirements: A review of the CCRs and a current and acceptable survey must verify: 1. There are no violations of any CCRs

affecting the property, and there are no provisions calling for a forfeiture or reversion of title for violation of CCRs.

2. Any charges and assessments provided for in the CCRs have been paid. .

3. There are no encroachments of existing improvements (other than a boundary wall or fence) on the land onto adjoining land or onto any easements.

4. There is no right of first refusal to purchase contained in the restrictive covenants, or if there is, it has been fully complied with.

NOTE: If there is an encroachment and you do not intend to provide affirmative coverage as to the encroachment, taking exception to the encroachment in Schedule B alone may not be sufficient to negate the affirmative coverage. Some of the insuring provisions of this endorsement may need to be deleted or modified. Contact Regional Underwriting for guidance.




ALTA ENDORSEMENT FORM 5.1-06 (Planned Unit Development) (10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of: 1. Present violations of any restrictive covenants referred to in Schedule B that restrict the use of the Land or the forfeiture or reversion of Title by reason of any provision contained in the restrictive covenants. As used in this paragraph 1, the words “restrictive covenants” do not refer to or include any covenant, condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the Land, or (b) 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 Land has been recorded in the Public Records at Date of Policy and is not excepted in Schedule B. 2. Any charges or assessments in favor of any association of homeowners, that are provided for in any document referred to in Schedule B, due and unpaid at Date of Policy. 3. The enforced removal of any existing structure on the Land (other than a boundary wall or fence) because it encroaches onto adjoining land or onto any easements. 4. The failure of the Title by reason of a right of first refusal to purchase the Land that was exercised or could have been exercised at Date of Policy. 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. Dated: ________________ [Title Agent] By: ______________________________________________





ALTA ENDORSEMENT FORM 6-06 (Variable Rate)

Purpose: Provides the insured lender with coverage against loss or damage resulting from the invalidity, unenforceability, or loss of priority of the Insured Mortgage by reason of any provision providing for changes in the rate of interest. This endorsement does not cover

negative amortization loans.


Suggested Premium: $75.00

Underwriting Requirements: An examination of the loan documents must verify that: 1. The loan is in fact a variable rate loan

and this is reflected in the mortgage instrument to be insured. The Insured Mortgage document must contain a clear statement that it secures interest at a variable rate. It is not sufficient for the mortgage instrument to state merely that the interest is secured pursuant to the terms of the note or other security instrument.

2. The adjustments to be made in the interest rate are tied to an identifiable index. Examples of indices that comply with this requirement are: (i) federal cost of funds indices; (ii) treasury bill interest rates; (iii) the Prime rate of a substantial local, national or international bank other than the lender; and (iv) the Prime rate of the lending bank (if a bank loan), if the insured lender is a large commercial bank.




ALTA ENDORSEMENT FORM 6-06 (Variable Rate Mortgage) (Rev. 10/16/08)

ENDORSEMENT

Attached to Policy No.__________ Issued By

[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of: 1. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from its provisions that provide for changes in the rate of interest. 2. Loss of priority of the lien of the Insured Mortgage as security for the unpaid principal balance of the loan, together with interest as changed in accordance with the provisions of the Insured Mortgage, which loss of priority is caused by the changes in the rate of interest. "Changes in the rate of interest", as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the loan documents secured by the Insured Mortgage at Date of Policy. This endorsement does not insure against loss or damage based upon: 1. usury, or 2. any consumer credit protection or truth in lending law. 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. Dated: ________________ [Title Agent]

By: ______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 6.2-06 (Variable Rate- Negative Amortization)

Purpose: Provides the insured lender with coverage against loss or damage by reason of the invalidity, unenforceability, or loss of priority of the insured mortgage due to: (i) any provision in the loan documents providing for changes in the rate of interest; (ii) unpaid interest being added back into the note as principal; or (iii) interest being charged on that portion of the unpaid interest that is

added back as principal.



Underwriting Requirements: Same as the ALTA Form 6-06 and the following additional requirements:

1. The secured mortgage must clearly and

expressly state that it secures a loan providing for negative amortization, or adding unpaid interest to principal;

2. If any transaction appears to require payment of extreme rates or amounts of interest, you should contact Regional Underwriting.




ALTA ENDORSEMENT FORM 6.2-06 (Variable Rate, Negative Amortization)(Rev. 10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of: 1. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from its provisions that provide for: (a) interest on interest; (b) changes in the rate of interest; or (c) the addition of unpaid interest to the principal balance of the loan. 2. Loss of priority of the lien of the Insured Mortgage as security for the principal balance of the loan, including any unpaid interest which was added to principal in accordance with the provisions of the Insured Mortgage, interest on interest, or interest as changed in accordance with the provisions of the Insured Mortgage, which loss of priority is caused by (a) changes in the rate of interest; (b) interest on interest; or (c) increases in the unpaid principal balance of the loan resulting from the addition of unpaid interest. "Changes in the rate of interest", as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the loan documents secured by the Insured Mortgage at Date of Policy. This endorsement does not insure against loss or damage based upon: 1. usury, or 2. any consumer credit protection or truth in lending law. 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. Dated: ________________ [Title Agent]






ALTA ENDORSEMENT FORM 7-06 (Manufactured Housing)

Purpose: Provides the insured lender with coverage that the definition of “Land” as contained in the policy includes a manufactured housing unit located on the land.



Underwriting Requirements: 1. A review of a current and acceptable

survey and/or inspection of the property verifies the manufactured housing unit (“MHU”) is located on and is permanently affixed to the land. This would require that the MHU: (i) be permanently attached to a foundation and the wheels and towing bar are removed; and (ii) be connected to utilities.

2. Title to the MHU and the real property are vested in the same person, or will be vested in the same person after the consummation of the closing.

3. The identification number of the Certificate of Title matches the number on the actual MHU.

4. The MHU is taxed by the local ad valorem tax authorities as real property, and all taxes have been paid, or will be paid at closing.

5. The Certificate of Title does not reveal any lien or security interest against the MHU, or such lien must be paid/released at closing.

6. A search of the real estate records and UCC records (e.g., UCC filings in Oklahoma County) do not reveal a mortgage or UCC-1 Financing Statement against the MHU, or such liens mustl be paid/released at closing.

7. The legal description of the real property in the deed and/or mortgage must cover both the land and the MHU, and the MHU must be unified by its serial number.

8. The Certificate of Title has been cancelled by the Oklahoma Tax Commission in accordance with 47 Okla. Stat. §14-103D, or will be cancelled after the consummation of the closing.




ALTA ENDORSEMENT FORM 7-06 (Manufactured Housing Unit) (6/17/06)



The term "Land" includes the manufactured housing unit located on the land described in Schedule A at Date of Policy. 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. Dated: ________________ [Title Agent]





ALTA ENDORSEMENT FORM 7.1-06 (Manufactured Housing-Loan)

Purpose: This endorsement clarifies whether or not a ("MHU") located on the land is covered by the insurance policy. In addition, this endorsement insures against loss or damage if the MHU is not located on the subject premises, if there are UCC type liens filed against the MHU and if the MHU does not constitute real property under state law. This endorsement is for use with a Loan Policy, and it also insures that the Insured Mortgage can be enforced in a single foreclosure action against both MHU and the Land. The ALTA Form 7.2-06 is the endorsement for use with and Owner's Policy.



Underwriting Requirements: The same underwriting guidelines apply to the issuance of this endorsement as applied to issuance of the ALTA Form 7-06. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 7.1-06 (Manufactured Housing-Conversion; Loan) (6/17/06)

ENDORSEMENT

Attached to Policy No. Issued By

[FNTG Underwriter] 1. The term "Land" includes the manufactured housing unit located on the land described in Schedule A at

Date of Policy. 2. Unless excepted in Schedule B, the Company insures against loss or damage, sustained by the Insured

if, at Date of Policy:

(a) A manufactured housing unit is not located on the land described in Schedule A. (b) The manufactured housing unit located on the land is not real property under the law of the state

where the Land described in Schedule A is located. (c) The owner of the land is not the owner of the manufactured housing unit. (d) Any lien is attached to the manufactured housing unit as personal property, including

(i) a federal, state, or other governmental tax lien, (ii) UCC security interest, (iii) a motor vehicular lien, or (iv) other personal property lien.

(e) The lien of the Insured Mortgage is not enforceable against the Land. (f) The lien of the Insured Mortgage is not enforceable in a single foreclosure procedure.

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. . Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 7.2-06 (Manufactured Housing-Owner)

Purpose: This endorsement clarifies whether or not a manufactured housing unit ("MHU") located on the land is covered by the insurance policy. In addition, this endorsement insures against loss or damage if the manufactured home is not located on the subject premises, if there are UCC type liens filed against the MHU and if the MHU does not constitute real property under state law. This endorsement is for use with an Owner's Policy.

Policy To Be Endorsed: Owner's Policy

Suggested Premium:

$75.00

Underwriting Requirements: The same underwriting guidelines applied to issuance of this endorsement and supply to issuance of the ALTA Form 7-06. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT - FORM 7.2-06 (Manufactured Housing-Conversion; Owners)(6/17/06)

ENDORSEMENT


[FNTG Underwriter]

1. The term "Land" includes the manufactured housing unit located on the land described in Schedule A at Date of Policy.

2. Unless excepted in Schedule B, the Company insures against loss or damage, sustained by the Insured

if, at Date of Policy:

(a) A manufactured housing unit is not located on the land described in Schedule A. (b) The manufactured housing unit located on the land is not real property under the law of the state

where the Land described in Schedule A is located. (c) The Insured is not the owner of the manufactured housing unit. (d) Any lien is attached to the manufactured housing unit as personal property, including:

(i) a federal, state, or other governmental tax lien, (ii) UCC security interest, (iii) a motor vehicular lien, or (iv) other personal property lien.

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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 8.1-06 (Environmental Protection Lien)

Purpose: Provides the insured lender with coverage against loss or damage by reason of the lack of priority of the insured mortgage lien over certain liens for environmental clean-up costs, except for: (i) those environmental liens specifically excepted to in the endorsement; or (ii) any environmental liens created by the state statute(s) specifically described in the endorsement. This endorsement is limited to a 1 to 4 family

residential property.



Underwriting Requirements: 1. The insured property must be a 1 to 4

family residential property.

2. No environmental liens are recorded or filed which affect the Title to the Land which is described in the policy; or

3. You have taken an exception in Schedule B to any environmental liens each have been recorded or filed.

Note: When the endorsement is issued, any state statute that creates a super priority environmental lien must be inserted under Paragraph (b) of the endorsement. As of the date of this manual, there are no such liens in Oklahoma. Therefore, the word “None” should be inserted immediately after Paragraph (b) of the endorsement.




ALTA ENDORSEMENT FORM 8.1-06 (Environmental Protection Lien)(6/17/06)

ENDORSEMENT


[FNTG Underwriter] The insurance afforded by this endorsement is only effective if the Land is used or is to be used primarily for residential purposes. The Company insures against loss or damage sustained by the Insured by reason of lack of priority of the lien of the Insured Mortgage over:

(a) any environmental protection lien that, at Date of Policy, is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge, or is filed in the records of the clerk of the United States district court for the district in which the Land is located, except as set forth in Schedule B; or

(b) any environmental protection lien provided by any state statute in effect at Date of Policy, except

environmental protection liens provided by the following state statutes: 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 8.2-06 (Commercial Environmental)

Purpose: Provides the insured lender with coverage against loss or damage by reason of the lack of priority of the insured mortgage lien over certain liens for environmental clean-up costs, except for: (i) those environmental liens specifically excepted to in the endorsement; or (ii) any environmental liens created by the state statute(s) specifically described in the endorsement. This endorsement is limited to any ALTA Loan Policy or Owner's Policy covering commercial or multi-family residential

property..



Underwriting Requirements: 1. No environmental liens are recorded or

filed which affect the Title to the Land which is described in the policy; or

2. You have taken an exception in Schedule B to any environmental liens;

3. You have taken an exception in Schedule B to any environmental liens that have been recorded or filed.

Note: When the endorsement is issued, any state statute that creates a super priority environmental lien must be inserted under Paragraph (b) of the endorsement. As of the date of this manual, there are no such liens in Oklahoma. Therefore, the word “None” should be inserted immediately after Paragraph (b) of the endorsement.




ALTA ENDORSEMENT FORM 8.2-06 (Commercial Environmental Lien)(10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of an environmental protection lien that, at Date of Policy, is recorded in the Public Records or filed in the records of the clerk of the United States district court for the district in which the Land is located, unless the environmental protection lien is set forth as an exception in Schedule B. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





INTRODUCTION TO THE ALTA FORM 9 SERIES OF ENDORSEMENTS

Beginning In 2012, the American Land Title Association (ALTA) completely revised all of the endorsements in the Form 9 series. As part of this revision process, ALTA : (i) withdrew ALTA Form 9.4-06 and 9.5-06; (ii) added five new forms, ALTA Forms 9.6-06, 9.7-06, 9.8-06, 9.9-06, and 9.10-06; (iii) revised four of the forms, ALTA Form 9-06, 9.1-06, 9.2-06, and 9.3-06; and (iv) removed the mineral coverage from the endorsements (except for the 9-06 and the new 9.7-06 and 9.10-06), and now provide the mineral coverage in the new ALTA Form 35 series of endorsements (which endorsements are not available in Oklahoma). The revision process by ALTA is delineated in the table below. In the table, please note that "REM" means "Restrictions, Encroachments and Minerals", and "CCR" means "Covenants, Conditions and Restrictions".

ALTA Endorsement Original Title New Revision Title 9-06 REM (LP) *REM-Loan Policy (4/2/12))

9.1-06 REM (OP-Unimproved Land) CCR -Unimproved Land-Owner's Policy (4/2/12)

9.2-06 REM (OP-Improved Land) CCR-Improved Land-Owner's Policy (4/2/12)

9.3-06 REM (LP) CCR-Loan Policy (4/2/12)

9.4-06 Decertified

9.5-06 Decertified

9.6-06 New Private Rights-Loan Policy (4/2/13)

9.7-06 New *REM- Land Under Development-Loan Policy (4/2/12)

9.8-06 New CCR- Land Under Development-Owner's Policy (4/2/13)

9.9-06 New Private Rights-Owner's Policy (4/2/13)

9.10-06 New REM-Current Violations-Loan Policy (4/2/13

35-06, 35.1-06, 35.2-06 and 35.3-06

New, but not available in Oklahoma

Another way to classify the new forms is as follows:

Restrictions, Encroachments, *Minerals

*ALTA 9-06 Loan Policy *ALTA 9.7-06 Loan Policy- Land Under Development *ALTA 9.10-06 REM-Current Violations Loan Policy

Covenants Conditions, Restrictions

ALTA 9.1-06 Owner- Unimproved Land

ALTA 9.2-06 Owner- Improved Land ALTA 9.8-06 Owner- Land Under Development

ALTA 9.3-06 Loan Policy

Private Rights

ALTA 9.6-06 Loan Policy 9.9-06 Owner's Policy

Minerals and Other Subsurface Substances

35-06, 35.1-06, 35.2-06 and 35.3-06 (Not available in Oklahoma)

*These ALTA Endorsements are not available in Oklahoma in their original promulgated form as each includes coverage against damages to the surface/improvements caused by mineral exploration/development, which is prohibited. Therefore, a modified version (that does not contain the mineral coverage provision) of the endorsement must be issued, and the Oklahoma equivalent of the endorsement may not be referred to as an ALTA endorsement and you may not refer to the ALTA Form number. For example, the Oklahoma equivalent of the current ALTA Form 9 Series of endorsements that have been modified to remove the mineral coverage provision are as follows:

Current ALTA Endorsement Oklahoma Equivalent ALTA 9-06 (Restrictions, Encroachments, Minerals-Loan Policy 4/02/12)

OK (Restrictions and Encroachments (Loan Policy)-06

ALTA 9.7-06 (Restrictions, Encroachments, Minerals-Loan Policy-Land Under Development 4/02/12)

OK Restrictions and Encroachments (Land Under Development-Loan Policy)-06

ALTA 9.10- (Restrictions,Encroachments, Minerals-Current Violations-Loan Policy 4/02/13

OK Restrictions and Encroachments(Current Violations-Loan Policy)-06



Table of Contents Endorsement Forms Introduction to the ALTA Form 9 Series

OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT ( Loan Policy)-06

Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) violations of enforceable covenants, conditions, and restrictions ("CCRs") that would result in the lien of the Insured Mortgage being divested, subordinated, or extinguished, or the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; and; (ii) certain encroachments. Note: This endorsement is the Oklahoma equivalent of the ALTA 9-06 endorsement. In accordance with the Oklahoma Department of Insurance regulations, this Oklahoma version of the endorsement does not provide coverage against damages to the surface and improvements resulting from the exploration and/or extraction of minerals. Because of this form change, this endorsement may not be designated or referred to as ALTA Form 9-06.


Suggested Premium: 10% of BPR (min. $75.00) Residential

20% of BPR (min. $150 .00) Commercial

Underwriting Requirements: 1. A review of all CCRs affecting the

property and an inspection and/or review of a current acceptable survey verifies: There are no enforceable CCRs, or unless excepted in Schedule B, no violations of CCRs that would result in: (I) the lien of the Insured Mortgage being extinguished, subordinated, or otherwise impaired, or (ii) the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; Note: If there are violations of CCRs, a separate express exception to such violation is required in Schedule B of the policy. A generic exception in Schedule B to the CCRs or the instrument containing such CCRs is not sufficient.

2. Except as noted in 3 below, an

inspection and/or review of a current acceptable survey of the property verifies that:

Unless excepted in Schedule B, there are no encroachments of improvements: i. On the insured Land onto adjoining

lands;

ii. On adjoining land onto the insured Land;

iii. Onto easements; or

iv. Over set back lines.

3. This endorsement may be issued without an inspection or survey on 1-4 family residential loan policies provided: (i) the property is a platted subdivision lot, or a metes and bounds description of 25 acres or less and the policy amount does not exceed $2.5 million; and (ii) the insured transaction is not a construction loan.




OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Loan Policy)-06 (4/2/12)



1. The insurance provided by this endorsement is subject to the exclusions in Section 5 of this endorsement;

and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.

2. For the purposes of this endorsement only:

a. “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in effect at Date of Policy.

b. “Improvement” means an improvement, including any lawn, shrubbery, or trees, affixed to either the Land or adjoining land at Date of Policy that by law constitutes real property.

3. The Company insures against loss or damage sustained by the Insured by reason of:

a. A violation of a Covenant that:

i. divests, subordinates, or extinguishes the lien of the Insured Mortgage,

ii. results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or

iii. causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness;

b. A violation on the Land at Date of Policy of an enforceable Covenant, unless an exception in Schedule B of the policy identifies the violation;

c. Enforced removal of an Improvement located on the Land as a result of a violation, at Date of Policy, of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or

d. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.


4. The Company insures against loss or damage sustained by reason of:

a. An encroachment of:

i. an Improvement located on the Land, at Date of Policy, onto adjoining land or onto that portion of the Land subject to an easement; or

ii. an Improvement located on adjoining land onto the Land at Date of Policy,

unless an exception in Schedule B of the policy identifies the encroachment otherwise insured against in Sections 4.a.i. or 4.a.ii.;

b. A final court order or judgment requiring the removal from any land adjoining the Land of an encroachment identified in Schedule B; or

c. Damage to an Improvement located on the Land, at Date of Policy that is located on or encroaches onto that portion of the Land subject to an easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which it was granted or reserved;

5. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) resulting from:

a. any Covenant contained in an instrument creating a lease;

b. any Covenant relating to obligations of any type to perform maintenance, repair, or remediation on the Land;

c. except as provided in Section 3.d, any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances;

d. contamination, explosion, fire, fracturing, vibration, earthquake or subsidence; or

e. negligence by a person or an Entity exercising a right to extract or develop minerals or other subsurface substances.

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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Loan Policy)-06 (4/2/12) (Loan Policy)



ALTA ENDORSEMENT FORM 9.1-06 (Convenants, Conditions and Restrictions-Unimproved Land- Owner’s Policy)

Purpose: Provides the insured owner with coverage against loss or damage by reason of) violations of enforceable covenants, conditions, and restrictions ("CCRs"). This endorsement is intended for unimproved land.

Policy To Be Endorsed: Owner’s Policy (unimproved land)

Suggested Premium:

10% of BPR (min. $75.00)

Underwriting Requirements: 1. There are or no CCRs affecting the Land.

or a review of all CCRs affecting the Land and an inspection or review of a current acceptable survey verifies that except as excepted in Schedule B there are no violations on the Land of any enforceable CCRS;

2. No notice of a violation of an enforceable

CCR relating to environmental protection is recorded in the public records.




ALTA ENDORSEMENT FORM 9.1-06 (Covenants, Conditions and Restrictions-Unimproved Land-Owner’s Policy )(4/2/12)





2. For the purposes of this endorsement only, “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in effect at Date of Policy.


a. A violation on the Land at Date of Policy of an enforceable Covenant, unless an exception in Schedule B of the policy identifies the violation; or

b. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.



b. any Covenant relating to obligations of any type to perform maintenance, repair, or remediation on the Land; or

c. except as provided in Section 3.b, any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 9.2-06 (Covenants, Conditions and Restrictions-

Improved Land- Owner’s Policy)

Purpose: Provides the insured owner with coverage against loss or damage by reason of: (i) violations of enforceable CCRs; and (ii) enforced removal of improvements due to violations of set back lines shown on a recorded plat of subdivision. This endorsement is intended for improved land.

Policy To Be Endorsed:

Owner’s Policy (improved land)

Suggested Premium: 10% of BPR (min. P$75.00) Residential

30% of BPR (min. $150.00) Commercial

Underwriting Requirements: 1. There are or no CCRs affecting the Land,

or a review of all CCRs affecting the Land and an inspection or review of a current acceptable survey verifies that a. Except as excepted in Schedule B,

there are no violations on the Land of any enforceable CCRS;

b. Except as excepted in Schedule B, there are no encroachments or protrusions of improvements over any building setback line shown on a plat of subdivision recorded or filed in the public records,

2. No notice of a violation of an enforceable

CCR relating to environmental protection is recorded in the public records.




ALTA ENDORSEMENT FORM 9.2-06 (Covenants,Conditions and Restrictions- Improved Land- Owner’s Policy (4/2/12)

ENDORSEMENT Attached to Policy No. __________




2. For the purposes of this endorsement only,


b. “Improvement” means a building, structure located on the surface of the Land, road, walkway, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.


a. A violation on the Land at Date of Policy of an enforceable Covenant, unless an exception in Schedule B of the policy identifies the violation;

b. Enforced removal of an Improvement as a result of a violation, at Date of Policy, of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or

c. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.




c. except as provided in Section 3.c., any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory






Loan Policy)

Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) violations of enforceable CCRs; and (ii) enforced removal of improvements due to violations of set back lines shown on a recorded plat of subdivision.


Loan Policy

Suggested Premium: 10% of BPR (min. P$75.00) Residential 30% of BPR (min. $150.00) Commercial

Underwriting Requirements: 1. There are no enforceable CCRs affecting

the Land. Or

2. Unless excepted in Schedule B, a review of all CCRs affecting the Land and an inspection and/or review of a current acceptable survey verifies: a. There are no violations of

enforceable CCRs affecting the Land which would result in: (i) the lien of the Insured Mortgage being divested, subordinated, or extinguished; or (ii) the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage;

b. There are no encroachments or protrusions of improvements over any building setback lines shown on a recorded subdivision plat.

.




ALTA ENDORSEMENT FORM 9.3-06 (Covenants,Conditions and Restrictions- Loan Policy (4/2/12)







b. “Improvement” means an improvement, including any lawn, shrubbery, or trees, affixed to the Land at Date of Policy that by law constitutes real property.


b. A violation of a Covenant that:


iii. results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or



c. Enforced removal of an Improvement as a result of a violation, at Date of Policy, of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or





c. except as provided in Section 3.d, any Covenant pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.



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.

Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory

ALTA ENDORSEMENT FORM 9.3-06 (Covenants,Conditions and Restrictions- Loan Policy (4/2/12)





ALTA ENDORSEMENT FORM 9.6-06 (Private Rights- Loan Policy)

Purpose: Provides the insured lender with coverage against loss or damage by reason of a Private Right contained in a CCR that results in: (i) the lien of the Insured Mortgage being divested, subordinated, or extinguished; or (ii) the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage. For purposes of this endorsement, "Private Right" means (i) a private charge or assessment; (ii) an option to purchase; (iii) a right of first refusal; or (iv) a right of prior

approval of a future purchaser or occupant.


Loan Policy



Underwriting Requirements: 1. There are no CCRs affecting the Land,

or a review of all CCRs verify the CCRs do not contain or provide for any "Private Right".

Or 2. If any CCR contains or provides for any

"Private Right", a specific exception to the "Private Right" is described in Schedule B.

Note: If a CCR contains or provides for any "Private Right", a generic exception to the CCR in Schedule B is not sufficient. A specific exception to the "Private Right" must be made in Schedule

3. Regional Underwriting approval.




ALTA ENDORSEMENT FORM 9.6-06 (Private Rights- Loan Policy (4/2/12)





2. For purposes of this endorsement only:


b. “Private Right” means (i) a private charge or assessment; (ii) an option to purchase; (iii) a right of first refusal; or (iv) a right of prior approval of a future purchaser or occupant.

3. The Company insures against loss or damage sustained by the Insured under this Loan Policy if enforcement of a Private Right in a Covenant affecting the Title at Date of Policy (a) results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or (b) causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) resulting from any covenant, condition, limitation or restriction:



c. any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

d. any Private Right described in Exception (s) _________ in Schedule B.







OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Land Under

Development- Loan Policy)-06

Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) violations of enforceable CCRs; (ii) violations of CCRs that would result in the lien of the Insured Mortgage being divested, subordinated, or extinguished, or the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; and (iii) certain encroachments. The encroachment coverages provided by this endorsement apply to existing improvements and "Future Improvements" as defined in the endorsement. This endorsement is intended for land under development. Note: This endorsement is the Oklahoma equivalent of the ALTA 9.7-06 endorsement. In accordance with the Oklahoma Department of Insurance regulations, this Oklahoma version of the endorsement does not provide coverage against damages to the surface and improvements resulting from the exploration and/or extraction of minerals. This endorsement may not be designated or

referred to as ALTA Form 9.7-06.


Loan Policy (land under development)

Suggested Premium: 10% of BPR (min. $75.00) Residential



property and an inspection and/or review of a current acceptable survey verifies:

a. There are no enforceable CCRs; or

b. Unless excepted in Schedule B,

there or no violations on the land that would result in: (i) the lien of the Insured Mortgage being divested, subordinated, or extinguished; or (ii) the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage.

Note: if there is such a violation, a generic exception to the CCRs in Schedule B is not sufficient. A specific exception to the "violation" must be made in Schedule B.

2. An inspection and/or review of a current

acceptable survey of the property verify:

That except as shown in Schedule B, there are no encroachments of improvements: i. On the insured Land onto adjoining

land;

ii. On adjoining land onto the insured Land;

iii. Onto easements; or

iv. Over set back lines.




OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT ( Land Under Development- Loan Policy)-06 (4/2/12)

ENDORSEMENT

Attached to Policy No. __________ Issued By

[FNTG Underwriter]





b. “Future Improvement” means a building, structure, road, walkway, driveway, curb, lawn, shrubbery or trees to be constructed on or affixed to the Land in the locations according to the Plans and that by law will constitute real property.

c. “Improvement” means an improvement, including any lawn, shrubbery, or trees, affixed to either the Land or adjoining land at Date of Policy that by law constitutes real property.

d. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________, designated as (insert name of project or project number) consisting of ___ sheets.


c. A violation of a Covenant that:


iv. results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or


b. A violation of an enforceable Covenant by an Improvement on the Land at Date of Policy or by a Future Improvement, unless an exception in Schedule B of the policy identifies the violation;

c. Enforced removal of an Improvement located on the Land or of a Future Improvement as a result of a violation of a building setback line shown on a plat of subdivision recorded or filed in the Public Records at Date of Policy, unless an exception in Schedule B of the policy identifies the violation; or





i. an Improvement located on the Land at Date of Policy or a Future Improvement, onto adjoining land or onto that portion of the Land subject to an easement; or

iii. an Improvement located on adjoining land onto the Land at Date of Policy,


b. Damage to an Improvement located on the Land at Date of Policy or a Future Improvement that encroaches onto that portion of the Land subject to an easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which it was granted or reserved;





d. contamination, explosion, fire, vibration, fracturing, earthquake or subsidence; or


Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Land Under Development- Loan Policy)-06 (4/2/12)




Land Under Development- Owner’s Policy)

Purpose: Provides the insured owner with coverage against loss or damage by reason of: (i) violations of enforceable CCRs; and (ii) enforced removal of improvements due to violations of set back lines shown on a recorded subdivision plat.

The encroachment coverages provided by this endorsement apply to existing improvements and "Future Improvements" as defined in the endorsement. This endorsement is intended for land under development.


Owner’s Policy (land underdevelopment)




property and an inspection and/or review of a current acceptable survey verifies:

c. There are no enforceable CCRs; or

d. Unless excepted in Schedule B,

there or no violations on the land of enforceable CCRs;

Note: if there is such a violation, a generic exception to the CCRs in Schedule B is not sufficient. A specific exception to the "violation" must be made in Schedule B.

2. An inspection and/or review of a current

acceptable survey of the property verify:

That except as shown in Schedule B, there are no encroachments or protrusions of improvements over set back lines.




ALTA ENDORSEMENT FORM 9.8-06 (Covenants, Conditions and Restrictions- Land Under Development- Owner’s Policy (4/2/12)

ENDORSEMENT


[FNTG Underwriter]





b. “Future Improvement” means a building, structure, road, walkway, driveway, curb to be constructed on or affixed to the Land in the locations according to the Plans and that by law will constitute real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.

c. “Improvement” means a building, structure located on the surface of the Land, road, walkway, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.

d. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________, designated as (insert name of project or project number) consisting of ___ sheets.


e. A violation of an enforceable Covenant by an Improvement on the Land at Date of Policy or by a Future Improvement, unless an exception in Schedule B of the policy identifies the violation;

f. Enforced removal of an Improvement located on the Land or of a Future Improvement as a result of a violation of a building setback line shown on a plat of subdivision recorded or filed in the Public Records at Date of Policy, unless an exception in Schedule B of the policy identifies the violation; or

g. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.




c. except as provided in Section 3.c, any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances; or

d. contamination, explosion, fire, vibration, fracturing, earthquake or subsidence.






OK ENDORSEMENT FORM 9.8-06 (Covenants, Conditions and Restrictions- Land Under Development- Loan Policy (4/2/12)





ALTA ENDORSEMENT FORM 9.9-06 (Private Rights- Owner’s Policy)

Purpose: Provides the insured owner with coverage against loss or damage if the enforcement of a Private Right contained in a CCR based upon a transfer of Title on or before Date of Policy causes a loss of the Insured's Title. For purposes of this endorsement, "Private Right" means (i) an option to purchase; (ii) a right of first refusal; or (iii) a right of prior

approval of a future purchaser or occupant.


Owner’s Policy

Suggested Premium: 10% of BPR (min. ($75.00) Residential


Underwriting Requirements: 1. There are no CCRs affecting the Land,

or a review of all CCRs verify the CCRs do not contain or provide for any "Private Right";

Or 2. If any CCR contains or provides for any

"Private Right", a specific exception to the "Private Right" is described in Schedule B and referenced in provision 4d of the endorsement

Note: If a CCR contains or provides for any "Private Right", a generic exception to the CCR in Schedule B is not sufficient. A specific exception to the "Private Right" must be made in Schedule B. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 9.9-06 (Private Rights- Owner’s Policy (4/2/13)




and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the

Conditions in the policy.


a. “Covenant” means a covenant, condition, limitation or restriction in a document or instrument recorded in

the Public Records at Date of Policy.

b. “Private Right” means (i) an option to purchase; (ii) a right of first refusal; or (iii) a right of prior approval

of a future purchaser or occupant.

3. The Company insures against loss or damage sustained by the Insured under this Owner’s Policy if

enforcement of a Private Right in a Covenant affecting the Title at Date of Policy based on a transfer of Title

on or before Date of Policy causes a loss of the Insured’s Title.


e. any Covenant contained in an instrument creating a lease;

f. any Covenant relating to obligations of any type to perform maintenance, repair, or remediation on the

Land;

g. any Covenant relating to environmental protection of any kind or nature, including hazardous or toxic

matters, conditions, or substances; or

h. any Private Right in an instrument identified in Exception(s) ______ in Schedule B.

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.






Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) violations at Date of Policy of enforceable covenants, conditions, and restrictions ("CCRs that would result in the lien of the Insured Mortgage being divested, subordinated, or extinguished, or the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; and (ii) certain encroachments. This endorsement is utilized when a violation of a CCR could result in forfeiture or reversion, but there is no current violation. This endorsement is the Oklahoma equivalent of the ALTA 9.10-06 and has been modified to remove the mineral damage coverage which is prohibited in Oklahoma. Because of this form change, this endorsement may not be designated or referred to as ALTA Form 9.10-06.


Loan Policy

Suggested Premium: 10% of BPR (min. ($75.00) Residential



property and an inspection and/or review of a current acceptable survey verifies: There are no enforceable CCRs, or unless excepted in Schedule B, there are no existing violations of CCRs that would result in: (i) the lien of the Insured Mortgage being extinguished, subordinated, or otherwise impaired; or (ii) the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage.

2. Except as noted in 3 below, an inspection and/or review of a current acceptable survey of the property verifies that: Unless excepted in Schedule B, there are no encroachments of improvements: i. On the Insured Land onto adjoining

lands; ii. On adjoining land onto the Insured

Land; iii. Onto easements; or iv. Over set back lines.

3. This endorsement may be issued

without an inspection or survey on 1-4 family residential loan policies provided: (i) the property is a platted subdivision lot, or a metes and bounds description of 25 acres or less and the policy amount does not exceed $2.5 million; and (ii) the insured transaction is not a construction loan.

Note: If there is an existing violation of any CCR, a separate express exception to such violation is required in Schedule B of the policy. A generic exception in Schedule B to the CCRs or the instrument containing such CCRs is not sufficient.


OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Current Violations-

Loan Policy)-06



OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Current Violations-Loan Policy)-06 (4/2/13)

ENDORSEMENT


[FNTG Underwriter]





b. “Improvement” means an improvement, including any lawn, shrubbery, or trees, affixed to either the Land or adjoining land at Date of Policy that by law constitutes real property.


a. A violation at Date of Policy of a Covenant that:


ii results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or



c. Enforced removal of an Improvement located on the Land as a result of a violation, at Date of Policy, of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or




i. an Improvement located on the Land, at Date of Policy, onto adjoining land or onto that portion of the Land subject to an easement; or

ii an improvement located on adjoining land onto the Land at Date of Policy


b. A final court order or judgment requiring the removal from any land adjoining the Land of an encroachment identified in Schedule B; or


c. Damage to an Improvement located on the Land, at Date of Policy that is located on or encroaches onto that portion of the Land subject to an easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purposes for which it was granted or preserved;





d. contamination, explosion, fire, fracturing, vibration, earthquake or subsidence;



OK RESTRICTIONS AND ENCROACHMENTS ENDORSEMENT (Current Violations-Loan Policy)-06 (4/2/13)



ALTA ENDORSEMENT FORM 10-06 (Assignment of Lien)

Purpose: Provides the insured lender with coverage that the insured mortgage has been assigned to a named assignee by a valid assignment properly recorded. It additionally insures against modifications, partial or full reconveyances, release, or discharge of the assigned lien prior to the endorsement. There is no "down date" of coverage, and the effective date of the policy is not changed.


Suggested Premium:

$75.00

Underwriting Requirements: Regional Underwriting approval, and an examination of the assignment of lien document must verify that: 1. The assignment of lien has been

properly executed and filed of record; 2. No modification, partial or full

reconveyance, release or discharge of the lien subsequent to the Date of Policy has been filed of record. If this is the case, the word “NONE” should be inserted under paragraph “2(b)” of the endorsement. If a modification, partial or full reconveyance, release or discharge of the lien has been filed since the Date of Policy, such document including recording information must be inserted under paragraph “2(b)” of the endorsement.

3. You must obtain an Affidavit and Estoppel Certification from the Lender that affirms the outstanding mortgage indebtedness and that the loan was not in default at the time of the assignment;

4. If: (i) the Land is other than one-to-four

family residential property, or (ii) the assignor is a non-institutional lender; AND, (iii) the Insured Mortgage is more than one year old, you must obtain from the owner/borrower an Affidavit and Estoppel Certification that affirms the mortgage lien being assigned is still good and valid, and in all respects, free from all defenses, both in law and in equity.

SAMPLE FORMS AND ENDORSEMENT ON FOLLOWING PAGE



LENDER’S (ASSIGNOR’S) AFFIDAVIT AND ESTOPPEL CERTIFICATION (For Purposes of Issuing an Assignment of Lien Endorsement)

Date: GF No.: Title Company: Holder of Note and Mortgage/Affiant ("Holder"): Holder's Mailing Address: Mortgage Being Assigned ("Mortgage"): Dated:

Original Mortgagor: Original Mortgagee: Recorded: Property:

Proposed Assignee: Record Owner of the Land (if other than Borrower): Title Insurance Company Underwriter ("Underwriter"):

Holder hereby certifies to Underwriter that the following statements are true and correct: t:

Individual. I am the Current Holder of the Note and Mortgage. I am over the age of 18 years, and I am fully competent to execute this affidavit.

Entity. I am the (title) of , a (type of entity), the Current O Holder of the Note and Mortgage. I am over the age of 18 years, and I am fully competent to execute this affidavit. I am executing this affidavit as an individual and in my representative capacity.

1. The Mortgage is a valid and enforceable lien on the Property. Borrower (and Owner if other than the Borrower) has no defenses to the validity and enforceability of the Mortgage. The loan secured by the Mortgage (the "Loan") is not past due or in default. The Loan has not matured.

2. The Loan is current through [date], in the current balance is $ .

3. Holder is in possession of the original Note. A true and correct copy of the Note is attached hereto as Exhibit "A" [ATTACH NOTE]. The Note has been properly executed and endorsed to Holder. A true and correct copy of the requisite endorsement is attached hereto as Exhibit "B" [ATTACH EVIDENCE THAT NOTE HAS BEEN ENDORSED TO HOLDER].

4. Holder acknowledges that this certification is given to induce Underwriter to issue its title insurance policy or policies pertaining to the Property, and that Underwriter is relying on the statements herein.

HOLDER/AFFIANT: _________________________________________ _________________________________________

SIGNED AND SWORN to before me on this day of , 20 , by , to certify which witness my hand and seal of office.

My Commission Expires: _____________________________________________ Notary Public, State of Notary Name Printed: _____________________________________________


OWNER/BORROWER AFFIDAVIT AND ESTOPPEL CERTIFICATION (For Purposes of Issuing an Assignment of Lien Endorsement)

Date: GF No.: Title Company: Current Owner/Affiant: Mortgage Being Assigned ("Mortgage"): Dated:

Original Mortgagor: Original Mortgagee: Recorded: Property:

Assignee:

The undersigned Affiant, being duly sworn, on oath affirms that the following statements are true and within the personal knowledge of Affiant:

Individual. I am the Current Owner of the Property. I am over the age of 18 years, and I am fully competent to execute this affidavit.

Entity. I am the (title) of , a (type of entity), the Current Owner of the Property. I am over the age of 18 years, and I am fully competent to execute this affidavit. I am executing this affidavit as an individual and in my representative capacity.

1. This Affidavit and Estoppel Certification ("Certification") is made to the best knowledge of the undersigned Affiant.

2. Original Mortgagor made, executed, and delivered the Mortgage in favor of the Original Mortgagee.

3. Based upon information and belief, the Mortgage is a good and valid lien upon the Property, and the Mortgage and the note or notes, indebtedness and other obligations secured by the Mortgage ("Obligations") are in all respects free from all defenses, in law and in equity.

4. This Certification is made for the protection and benefit of Current Owner and the holder of the Obligations secured by the Mortgage, and all other parties that may acquire an interest in the Property, and particularly for the benefit of any title insurer that insures the title to the Property directly or indirectly in reliance on the facts and representations contained in this Certification.

AFFIANT/CURRENT OWNER: _________________________________________ _________________________________________

SIGNED AND SWORN to before me on this day of , 20 , by , to certify which witness my hand and seal of office.

My Commission Expires: _____________________________________________ Notary Public, State of Notary Name Printed: _____________________________________________


ALTA ENDORSEMENT FORM 10-06 (Assignment of Lien)(Rev. 02/03/10)



1. The name of the Insured at Date of Endorsement and referred to in this endorsement as the “Assignee” is amended to read: 2. The Company insures against loss or damage sustained by the Assignee by reason of: a. The failure of the following assignment to vest title to the Insured Mortgage in the Assignee: b. Any modification, partial or full reconveyance, release, or discharge of the lien of the Insured Mortgage recorded on or prior to Date of Endorsement in the Public Records other than those shown in the policy or a prior endorsement, except: 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: 1. the assignment being deemed a fraudulent conveyance or fraudulent transfer; or 2. the assignment being deemed a preferential transfer. This endorsement shall be effective provided that, at Date of Endorsement, (1) the note or notes secured by the lien of the Insured Mortgage have been properly endorsed and delivered to the Assignee, or (2) 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. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 10.1-06 (Assignment and Down Date)

Purpose: Same as the ALTA Endorsement Form 10, but it also provides coverage against: (i) any liens for taxes or assessments that are due and payable on the date of the endorsement; (ii) lack of priority of the insured lien over defects, liens, or encumbrances other than those shown in the policy or endorsement; and (iii) federal tax liens or bankruptcy proceedings which are recorded subsequent to Date of Policy and on or prior to the date of the endorsement.


Suggested Premium:

$150.00

Underwriting Requirements: Same requirements as for the ALTA Form 10-06 endorsement (including the requirement of an Affidavit and Estoppel Certification from the lender and owner/borrower), and in addition, a title “down date” must verify that: 1. There are no liens for taxes or

assessments due and payable. If this is the case, the word “NONE” should be inserted under paragraph “2(b)” of the endorsement. If there are such liens, they must be inserted under paragraph “2(b)” of the endorsement;

2. There are no other liens or encumbrances which are superior to the insured lien except for those shown in the policy and any prior endorsement. If there are such liens, they must be inserted under paragraph “2(c)” of the endorsement;

3. There are no pending federal tax liens or notices of pending bankruptcy proceedings affecting the title which been recorded subsequent to the Date of Policy. If there are, these matters must be inserted under paragraph “2(d)” of the endorsement.

4. No modification, partial or full

reconveyance, release or discharge of the lien subsequent to the Date of Policy has been filed of record. If a modification, partial or full reconveyance, release or discharge of the lien has been filed since the Date of Policy, such document including recording information must be inserted under paragraph “2(e)” of the endorsement.




ALTA ENDORSEMENT FORM 10.1-06 (Assignment and Date Down)(Rev. 02/03/10)



1. The name of the Insured at Date of Endorsement and referred to in this endorsement as the “Assignee” is amended to read: The Company insures against loss or damage sustained by the Assignee by reason of: (a) The failure of the following assignment to vest title to the Insured Mortgage in the Assignee: (b) Any liens for taxes or assessments that are due and payable on Date of Endorsement, except: (c) Lack of priority of the lien of the Insured Mortgage over defects, liens or encumbrances other than those shown in the policy or a prior endorsement, except: (d) Notices of federal tax liens or notices of pending bankruptcy proceedings affecting the Title and recorded subsequent to Date of Policy in the Public Records and on or prior to Date of Endorsement, except: (e) Any modification, partial or full reconveyance, release or discharge of the lien of the Insured Mortgage recorded on or prior to Date of Endorsement in the Public Records other than those shown in the policy or a prior endorsement, except: 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: 1. the assignment being deemed a fraudulent conveyance or fraudulent transfer; or 2. the assignment being deemed a preferential transfer. This endorsement shall be effective provided that, at Date of Endorsement, (1) the note or notes secured by the lien of the Insured Mortgage have been properly endorsed and delivered to the Assignee, or (2) 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 transaction laws. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 11-06 (Mortgage Modification)

Purpose: Provides the insured lender with coverage against loss or damage by reason of: (i) the invalidity or unenforceability of the insured mortgage as a result of the identified modification agreement; and (ii) the lack of priority of the insured mortgage over defects, liens or encumbrances, except for those excepted to in Schedule B, any prior endorsement, or those added as exceptions in the endorsement. The endorsement excludes from coverage any claim by reason of the operation of federal bankruptcy law, state insolvency, or similar creditors’ rights laws.

This endorsement does not change the

effective date of the policy.


Suggested Premium: *20% of BPR (min. $75.00) *Based upon unpaid balance of original

encumbrance

Underwriting Requirements:

1. The modification agreement must be

executed by the borrower and lender, properly acknowledged, and filed of record. The Company will not issue this endorsement in connection with an unrecorded modification.

2. The change or modification must affect a

non-monetary aspect of the mortgage (i.e., does not show an additional advance or change the amount of the secured debt).

3. The modification cannot assign the

mortgage. 4. A title update must be provided through

the date of endorsement which must cover the recording of the modification of the Insured Mortgage to see or determine if any intervening matters would affect the priority of the mortgage as modified. If the title update reveals intervening matters, those matters must be inserted in paragraph 2 of the endorsement.

NOTE 1: This endorsement contains a "creditors' rights" exception relating to the modification agreement. This was included to cover those situations where "creditors' rights" coverage may have been given in the underlying policy based on the terms of the original mortgage or deed of trust in the structure of the original transaction. The modification could change those terms or structure. Any request for coverage over or deletion of this provision of the endorsement requires Regional Underwriting approval. Note 2: If you are requested to issue a modification endorsement to a Loan Policy which secures new additional debt funded over 30 days prior to the modification recording, contact Regional Underwriting.




ALTA ENDORSEMENT FORM 11-06 (Mortgage Modification)(6/17/06)



The Company insures against loss or damage sustained by the Insured by reason of: 1. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title at Date of Endorsement as a result of the agreement dated , recorded ("Modification"); and 2. The lack of priority of the lien of the Insured Mortgage, at Date of Endorsement, over defects in, or liens or encumbrances on the Title, except for those shown in the policy or any prior endorsement and except: [ADD EXCEPTIONS HERE OR STATE “NONE”] 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 laws, that is based on: 1. The Modification being deemed a fraudulent conveyance or fraudulent transfer; or 2. The Modification being deemed a preferential transfer except where the preferential transfer results from the failure: a. to timely record the instrument of transfer; or b. of such recordation to impart notice to a purchaser for value or to a judgment or lien creditor. 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. Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 11.1-06 (Mortgage Modification With Modification)

Purpose: Same as the ALTA 11-06, but this endorsement also insures against loss based upon a specific matter not being subordinated to the lien of the Insured

Mortgage.


Loan Policy

Suggested Premium: *20% of BPR (min. $75.00) *Based upon unpaid balance of original

encumbrance

Underwriting Requirements: 1. The modification agreement must be

executed by the borrower and lender, properly acknowledged, and filed of record.

2. The change or modification must affect a

non-monetary aspect of the mortgage (i.e., does not show an additional advance or change the amount of the secured debt).

3. The modification cannot assign the

mortgage. 3. A title update must be provided through

the date of endorsement which must cover the recording of the modification of the Insured Mortgage t see o determine if any intervening matters would affect the priority of the mortgage as modified. If the title update reveals intervening matters, those matters must be inserted in paragraph 2 of the endorsement.

4. Any matter that is specifically

subordinated to the Insured Mortgage by separate document or stable may be shown in the space following paragraph No. 3.

NOTE 1: This endorsement contains a "creditors' rights" exception relating to the modification agreement. This was included to cover those situations where "creditors' rights" coverage may have been given in the underlying policy based on the terms of the original mortgage or deed of trust in the structure of the original transaction. The modification could change those terms or will you structure. Any request for coverage over or deletion of this provision of the endorsement requires Regional Underwriting approval Note 2: If you are requested to issue a modification endorsement to a Loan Policy which secures new additional debt funded over 30 days prior to the modification recording, contact Regional Underwriting.




ALTA ENDORSEMENT FORM 11.1-06 (Mortgage Modification with Subordination)(10/22/09)



The Company insures against loss or damage sustained by the Insured by reason of: 1. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title at Date of Endorsement as a result of the agreement dated , recorded ("Modification"); and 2. The lack of priority of the lien of the Insured Mortgage, at Date of Endorsement, over defects in, or liens or encumbrances on the Title, except for those shown in the policy or any prior endorsement and except: [ADD EXCEPTIONS HERE, IF ANY, OR STATE “NONE”] 3. The following matters not being subordinate to the lien of the Insured Mortgage: [SPECIFY SUBORDINATED MATTERS HERE, IF ANY, OR STATE “NONE”] 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 laws, that is based on: 1. the Modification being deemed a fraudulent conveyance or fraudulent transfer; or 2. the Modification being deemed a preferential transfer except where the preferential transfer results from the failure a. to timely record the instrument of transfer; or b. of such recordation to impart notice to a purchaser for value or to a judgment or lien creditor. 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. Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 11.2-06 (Mortgage Modification With Additional

Amount of Insurance)

Purpose: Similar to the ALTA 11-06 and 11.1-06, but this endorsement is designed for issuance when and an Insured modifies an Insured Mortgage to increase the indebtedness and requests additional

insurance under the existing policy.


Loan Policy

Suggested Premium: *Full BPR (min. $75.00) *Based upon the amount of the additional

insurance

Underwriting Requirements: 1. The modification agreement must be

executed by the borrower and lender, properly acknowledged, and filed of record.

2. The increase in the amount of insurance

due to the increase in the indebtedness secured by the Insured Mortgage should be reflected in Paragraph 2 of the endorsement.

3. A title update must be provided through

the date of endorsement which must cover the recording of the modification of the Insured Mortgage to see or determine if any intervening matters would affect the priority of the mortgage as modified. If the title update reveals intervening matters, those matters must be inserted in Paragraph 3b of the endorsement.

4. Any matter that is specifically

subordinated to the Insured Mortgage by separate document or state law may be shown in Paragraph No. 3c

NOTE 1: This endorsement contains a "creditors' rights" exception relating to the modification agreement. This was included to cover those situations where "creditors' rights" coverage may have been given in the underlying policy based on the terms of the original mortgage or deed of trust in the structure of the original transaction. The modification could change those terms or will you structure. Any request for coverage over or deletion of this provision of the endorsement requires Regional Underwriting approval. The Company will not issue any such coverage on a go forward basis.




ALTA ENDORSEMENT FORM 11.2-06 (Mortgage Modification with the Additional Amount of Insurance)(12/02/13)

ENDORSEMENT

Attached to Policy No.

Issued By

[FNTG Underwriter] 1. Purposes of this endorsement only: a. "Modification" means the agreement between and dated and recorded as

document number .

b. "Date of Endorsement" means .

2. The Amount of Insurance is increased to $ . 3. Subject to the exclusions in Section [s] 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 and any prior endorsement, the Company insures as of 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: [Specify additional exceptions, 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 laws that is based on:

a. The Modification being deemed a fraudulent conveyance or fraudulent transfer; or

b. The Modification 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 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. Dated: By: Authorized Signatory

ALTA ENDORSEMENT FORM 11.2-06 (Mortgage Modification with the Additional Amount of Insurance)(12/02/13)





ALTA ENDORSEMENT FORM 12-06 (Mortgagee Aggregation-Tie In)

Purpose: Provides the insured lender with coverage that the amount of insurance under the loan policy shall be the aggregate of the amount of insurance under the policy and all other loan policies specifically identified in the endorsement. This endorsement is generally requested in multi-state transactions where several mortgages secure the same indebtedness, and the lender is unable to obtain one policy that insures all of the

individual mortgages.


Suggested Premium:

$100.00

Underwriting Requirements: 1. All of the loan policies to which the

endorsement will be attached must be of the same type.

2. The loan amount must be secured by mortgages on two or more parcels.

3. The Insured Mortgage must state that each secures the entire indebtedness or the sum of the amounts secured by all of the Insured Mortgages must equal the entire indebtedness.

4. The Amount of Insurance shown on Schedule A of the policy must be equal to the amount the Insured allocates to the property described in Schedule A and not to the total aggregate amount shown on the endorsement.

5. The Policies of other companies, including FNTG sister companies, cannot be tied in with policies issued by one particular company.

6. The policy number, county, state, and amount of all of the other policies being issued in connection with the transaction must be inserted in the endorsement.




ALTA ENDORSEMENT FORM 12-06 (Aggregation) (6/17/06)

ENDORSEMENT

Attached to Policy No.__________ Issued By

[FNTG Underwriter]

1. The following policies are issued in conjunction with one another:

POLICY NUMBER STATE AMOUNT

2. The amount of insurance available to cover the Company's liability for loss or damage under this policy at the time of payment of loss shall be the Aggregate Amount of Insurance defined in Section 3 of this endorsement.

3. Subject to the limits in Section 4 of this endorsement, the Aggregate Amount of Insurance under these policies is $ .

4. Section 7(a)(i) of the Conditions of this policy is amended to read:

7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY

In case of a claim under this policy, the Company shall have the following additional options:

(a) to pay or tender payment of the lesser of the value of the Title as insured or the Aggregate Amount of Insurance applicable under this policy at the date the claim was made by the Insured Claimant, or to purchase the Indebtedness.

(i) to pay or tender payment of the lesser of the value of the Title as insured at the date the claim was made by the Insured Claimant, or the Aggregate Amount of Insurance applicable under this policy together with any cost, attorneys’ fees, and costs and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or



5. Section 8(a) and 8(b) of the Conditions of this policy are amended to read:

8. DETERMINATION AND EXTENT OF LIABILITY

This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy.

(a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of

(i) the Aggregate Amount of Insurance,

(ii) the Indebtedness,

(iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or

(iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty.

(b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as the date it is settled and paid.

6. Section 10 of the Conditions of this policy is amended to read:

10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY

(a) All payments under this policy, except payments made for costs, attorneys’ fees, and expenses, shall reduce the Aggregate Amount of Insurance by the amount of the payment.

(b) However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Aggregate Amount of Insurance afforded under this endorsement except to the extent that the payments reduce the Indebtedness.

(c) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company under this policy, except as provided in Section 2 of these Conditions, but it will not reduce the Aggregate Amount of Insurance for the other policies identified in Section 1 of this endorsement.

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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 12-06 (Aggregation) (6/17/06)





ALTA ENDORSEMENT FORM 12.1-06 (Aggregation-State Limits-Loan)

Purpose: Provides the insured lender with coverage that the amount of insurance under the loan policy shall be the aggregate of the amount of insurance under the policy and all other loan policies specifically identified in the endorsement. This endorsement is similar to the ALTA 12 but is intended to be used for aggregating policies in multiple states one or more which have state statutory limitations on the

amount which can be insured.


Suggested Premium:

$100.00

Underwriting Requirements: 1. Regional Underwriting Approval.

2. All of the loan policies to which the

endorsement will be attached must be of the same type.

3. The loan amount must be secured by mortgages on two or more parcels.

4. The Insured Mortgage must state that each secures the entire indebtedness or the sum of the amounts secured by all of the Insured Mortgages must equal the entire indebtedness.

5. The Amount of Insurance shown on Schedule A of the policy must be equal to the amount the Insured allocates to the property described in Schedule A and not to the total aggregate amount shown on the endorsement.

6. The Policies of other companies, including FNTG sister companies, cannot be tied in with policies issued by any one particular company.

7. The policy number, county, state, and amount of all of the other policies being issued in connection with the transaction must be inserted in the endorsement.

8. If this endorsement is requested for a transaction in which the aggregate amount of insurance will exceed the self-imposed limit of the FNTG family, or if a party to the transaction is requiring reinsurance from a non-FNTG company, you must contact the FNTG Reinsurance Department before committing to issue the endorsement.

9. The states which have statutory limitations on the amount which may be insured are identified in provision 3 of the endorsement.




ALTA ENDORSEMENT FORM 12.1-06 (Aggregation- State Limits-Loan) (4/2/13)



5. The following policies are issued in conjunction with one another:

POLICY NUMBER: STATE: AMOUNT OF INSURANCE:

$

$

$

6. The amount of insurance available to cover the Company’s liability for loss or damage under this policy at the time of payment of loss shall be the Aggregate Amount of Insurance defined in Section 3 of this endorsement.

7. The Aggregate Amount of Insurance under this policy is either:

a. $ ______________________; or.

b. If the Land is located in one of the states identified in this subsection, then the Aggregate Amount of Insurance is restricted to the amount shown below:

STATE AGGREGATE AMOUNT OF INSURANCE

$

$

8. Section 7(a)(i) of the Conditions of this policy is amended to read:

7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY

In case of a claim under this policy, the Company shall have the following additional options:

(c) to pay or tender payment of the lesser of the value of the Title as insured or the Aggregate Amount of Insurance applicable under this policy at the date the claim was made by the Insured Claimant, or to purchase the Indebtedness.

(i) To pay or tender payment of the lesser of the value of the Title as insured at the date the claim was made by the Insured Claimant, or the Aggregate Amount of Insurance applicable under this policy, together with any cost, attorneys’ fees, and costs and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or




5. Section 8(a) and 8(b) of the Conditions of this policy are amended to read:

8. DETERMINATION AND EXTENT OF LIABILITY

This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy.

(a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of

(i) the Aggregate Amount of Insurance for the State where the Land is located,

(ii) the Indebtedness,

(iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or

(iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty.

(d) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as the date it is settled and paid.

6. Section 10 of the Conditions of this policy is amended to read:

10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY

(a) All payments under this policy, except payments made for costs, attorneys’ fees, and expenses, shall reduce the applicable Aggregate Amount of Insurance by the amount of the payment.

(b) If this policy insures the Title to Land located in a state identified in Section 3 b. of this endorsement:

(i) all payments under this policy, except payments made for costs, attorneys’ fees, and expenses, shall reduce the Aggregate Amount of Insurance by the amount of the payment; but

(ii) a payment made for loss or damage on Land insured in one of the policies identified in Section 1 on Land located outside this state shall not reduce the Aggregate Amount of Insurance in Section 3.b. of this endorsement until the Aggregate Amount of Insurance in Section 3.a. is reduced below the Aggregate Amount of Insurance in Section 3.b .

(c) However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Aggregate Amount of Insurance afforded under this endorsement except to the extent that the payments reduce the Indebtedness.




(d) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of

the Company under this policy, except as provided in Section 2 of these Conditions, but it will not reduce the Aggregate Amount of Insurance for the other policies identified in Section 1 of this endorsement.


Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory






ALTA ENDORSEMENT FORM 13-06 (Leasehold- Owner’s)

Purpose: Modifies provisions in an owner’s policy that insures a leasehold estate concerning the valuation of the estate or interest insured, and miscellaneous items of loss that are affected by the particularities of a leasehold transaction.


Suggested Premium: No charge

Underwriting Requirements: This endorsement should be issued and attached to every Owner's Policy that insures a leasehold estate. The search/abstracting and examination procedures for insuring leasehold estates remains the same, as does the modification of Schedule A. You may issue this endorsement based upon the following requirements: 1. Either the lease itself, or a short form

lease or memorandum of the lease (if the full lease is not recorded), must be properly executed by both parties and filed of record in order to give effective constructive notice on the record of the tenants' rights and interest. The company does not insure off record leasehold interests.

2. The entire lease must be reviewed and examined. Attention should be paid for such things as restrictions, negative covenants, reciprocal rights agreements, purchase options, setbacks, and easements, etc., especially if certain other endorsements (e.g., OK Form 9-06) are being issued.

3. You must include a Schedule B exception for the terms, conditions and provisions of the instrument creating the insured leasehold interest. If you are insuring a subleasehold estate, you also must include a Schedule B exception for the underlying or primary lease (s).

4. If a new lease is not being created at

closing, you must require Estoppel Certificates, in a form satisfactory to FNTG, from the Lessor and the Lessee.

SAMPLE ENDORSEMENT AND ESTOPPELS ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 13-06 (Leasehold-Owner’s)(Rev. 04/02/2012)

ENDORSEMENT

Attached to Policy No. __________


1. As used in this endorsement, the following terms shall mean:

a. "Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of the Land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case as a result of a matter covered by this policy.

b. "Lease": the lease described in Schedule A. c. "Leasehold Estate": the right of possession granted in the Lease for the Lease Term.

d. "Lease Term": the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or

extended term if a valid option to renew or extend is contained in the Lease. e. "Personal Property": property, in which and to the extent the Insured has rights, located on or affixed to

the Land on or after Date of Policy that by law does not constitute real property because (i) of its character and manner of attachment to the Land and (ii) the property can be severed from the Land without causing material damage to the property or to the Land.

f. "Remaining Lease Term": the portion of the Lease Term remaining after the Insured has been Evicted.

g. "Tenant Leasehold Improvements": Those improvements, in which and to the extent the Insured has

rights, including landscaping, required or permitted to be built on the Land by the Lease that have been built at the Insured's expense or in which the Insured has an interest greater than the right to possession during the Lease Term.

2. Valuation of Estate or Interest Insured:

If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction of the Insured, then, as to that portion of the Land from which the Insured is Evicted, that value shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold Improvements existing on the date of the Eviction. The Insured Claimant shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements affected by a defect insured against by the policy valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term. 3. Additional items of loss covered by this endorsement: If the Insured is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 2 of this endorsement, any other endorsement to the policy, or Section 8(a)(ii) of the Conditions:




a. The reasonable cost of (i) removing and relocating any Personal Property that the Insured has the right to remove and relocate, situated on the Land at the time of Eviction, (ii) transportation of that Personal Property for the initial one hundred miles incurred in connection with the relocation, (iii) repairing the Personal Property damaged by reason of the removal and relocation, and (iv) restoring the Land to the extent damaged as a result of the removal and relocation of the Personal Property and required of the Insured solely because of the Eviction.

b. Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the

Leasehold Estate may be obligated to pay to any person having paramount title to that of the lessor in the Lease.

c. The amount of rent that, by the terms of the Lease, the Insured must continue to pay to the lessor after

Eviction with respect to the portion of the Leasehold Estate and Tenant Leasehold Improvements from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or

sublease permitted by the Lease and made by the Insured as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees on account

of the breach of any lease or sublease permitted by the Lease and made by the Insured as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and

engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate.

g. If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, the actual cost

incurred by the Insured, less the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs incurred to obtain land use, zoning, building and occupancy permits, architectural and engineering services, construction management services, environmental testing and reviews, and landscaping.

4. This endorsement does not insure against loss, damage or costs of remediation (and the Company will not

pay costs, attorneys’ fees or expenses) resulting from environmental damage or contamination. 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. Dated: By: Authorized Signatory

ALTA ENDORSEMENT FORM 13-06 (Leasehold-Owner’s)(Rev. 04/02/2012)




LESSOR'S ESTOPPEL CERTIFICATE AND CONSENT AFFIDAVIT Date: File No: Escrow Agent: Underwriter: Lessor: Lessee: Affiant: Property: Affiant, being duly sworn, on oath affirms that the following statements are true: 1. Individual. I am the Lessor of the above described Property. Entity. I am the _________________________________________ (title) of Lessor, a

_______________________________________________ (type of entity), and I am authorized to make this affidavit on its behalf. Said Entity is the Lessor of the above described Property.

2. Lessee is the tenant of the Property under a written lease dated by and between Lessor and

[Lessee] [ ] (the “Lease”). The Lease has not been modified since that date except: .

3. As of the date of this affidavit, the above referenced Lease is in full force and effect, and neither Lessee nor

Lessor is in default in the performance of the Lease. Nor has Lessee or Lessor committed any breach of the Lease.

4. Consent to Assignment of Lease, if applicable. Lessor hereby consents to the assignment of the

Lease to __________________________________________________ (lease assignee), on _______________________________________________________.

Consent to Sublease, if applicable. Lessor hereby consents to the sublease of the above noted

lease to ____________________________________________________________ (sublessee), on ___________________________________________________________.

5. These representations are made to induce Escrow Agent and Underwriter to issue their policies of title

insurance on the Property and Affiant acknowledged that all parties are relying upon the truth of these statements. In consideration thereof, Affiant (and Lessor if Lessor is an entity) hereby agrees to indemnify and hold harmless Escrow Agent and Underwriter from any claims, costs, damages, causes of action, expenses and attorney's fees in any way arising from the inaccuracy of the above representations.

AFFIANT: AFFIANT: ______________________________________ Name printed: __________________________ Name printed:


JURAT

State of

County of

Sworn to and subscribed before me on , by . (date) (name of acknowledging person)

[Personalized Seal] (Notary Public’s Signature)

JURAT State of

County of




LESSEE'S ESTOPPEL CERTIFICATE Date: File No: Escrow Agent: Underwriter: Lessor: Lessee: Affiant: Property: Affiant, being duly sworn, on oath affirms that the following statements are true: 1. Individual. I am the Lessee of the above described Property. Entity. I am the _________________________________________ (title) of Lessee, a

_______________________________________________ (type of entity), and I am authorized to make this affidavit on its behalf. Said Entity is the Lessee of the above described Property.






insurance on the Property and Affiant acknowledged that all parties are relying upon the truth of these statements. In consideration thereof, Affiant (and Lessee if Lessee is an entity) hereby agrees to indemnify and hold harmless Escrow Agent and Underwriter from any claims, costs, damages, causes of action, expenses and attorney's fees in any way arising from the inaccuracy of the above representations.


JURAT

State of

County of




JURAT

State of

County of




Table of Contents Endorsement Forms Endorsement Forms

ALTA ENDORSEMENT FORM 13.1-06 (Leasehold- Lender)

Purpose: Modifies provisions in a loan policy that insures a leasehold estate concerning the valuation of the estate or interest insured, and miscellaneous items of loss that are affected by the particularities of a leasehold transaction.


Suggested Premium: No charge

Underwriting Requirements: This endorsement should be issued and attached to every Loan Policy that insures a leasehold estate. The search/abstracting and examination procedures for insuring leasehold estates remains the same, as does the modification of Schedule A. You may issue this endorsement based upon the following requirements: 1. Either the lease itself, or a short form

lease or memorandum of the lease (if the full lease is not recorded), must be properly executed by both parties and filed of record in order to give effective constructive notice on the record of the tenants' rights and interest. The company does not insure off record leasehold interest.

2. The entire lease must be reviewed and

examined. Attention should be paid for such things as restrictions, negative covenants, reciprocal rights agreements, purchase options, setbacks, and easements, etc., especially if certain other endorsements (e.g., OK Form 9-06) are being issued.

3. You must include a Schedule B

exception for the terms, conditions and provisions of the instrument creating the insured leasehold interest. If you are insuring a subleasehold estate, you also must include a Schedule B exception for the underlying or primary lease (s).

4. If a new lease is not being created at

closing, you must require Estoppel Certificates, in a form satisfactory to FNTG, from the Lessor and the Lessee.

SAMPLE ENDORSEMENT AND ESTOPPELS ON FOLLOWING PAGES




ALTA ENDORSEMENT FORM 13.1-06 (Leasehold-Loan)(Rev. 04/02/2012)

ENDORSEMENT



1. As used in this endorsement, the following terms shall mean:

a. "Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of the Land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case as a result of a matter covered by this policy.

b. "Lease": the lease described in Schedule A. c. "Leasehold Estate": the right of possession granted in the Lease for the Lease Term.

d. "Lease Term": the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or

extended term if a valid option to renew or extend is contained in the Lease. e. "Personal Property": property, in which and to the extent the Insured has rights, located on or affixed to

the Land on or after Date of Policy that by law does not constitute real property because (i) of its character and manner of attachment to the Land and (ii) the property can be severed from the Land without causing material damage to the property or to the Land.

f. "Remaining Lease Term": the portion of the Lease Term remaining after the Tenant has been Evicted. g. "Tenant": the tenant under the Lease and, after acquisition of all or any part of the Title in accordance with

the provisions of Section 2 of the Conditions of the policy, the Insured Claimant. h. "Tenant Leasehold Improvements": Those improvements, in which and to the extent the Insured has

rights, including landscaping, required or permitted to be built on the Land by the Lease that have been built at the Tenant’s expense or in which the Tenant has an interest greater than the right to possession during the Lease Term.

2. Valuation of Estate or Interest Insured:

If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction of the Tenant, then, as to that portion of the Land from which the Tenant is Evicted, that value shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold Improvements existing on the date of the Eviction. The Insured Claimant shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements affected by a defect insured against by the policy valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term.




3. Additional items of loss covered by this endorsement: If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of this policy and thereafter is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 2 of this endorsement, any other endorsement to the policy, or Section 8(a)(iii) of the Conditions:

a. The reasonable cost of (i) removing and relocating any Personal Property that the Insured has the right to

remove and relocate, situated on the Land at the time of Eviction, (ii) transportation of that Personal Property for the initial one hundred miles incurred in connection with the relocation, (iii) repairing the Personal Property damaged by reason of the removal and relocation, and (iv) restoring the Land to the extent damaged as a result of the removal and relocation of the Personal Property and required of the Insured solely because of the Eviction.

b. Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the

Leasehold Estate may be obligated to pay to any person having paramount title to that of the lessor in the Lease.

c. The amount of rent that, by the terms of the Lease, the Insured must continue to pay to the lessor after

Eviction with respect to the portion of the Leasehold Estate and Tenant Leasehold Improvements from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or

sublease permitted by the Lease and made by the Tenant as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees on account

of the breach of any lease or sublease permitted by the Lease and made by the Tenant as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and

engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate.

h. If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, the actual cost

incurred by the Insured, less the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs incurred to obtain land use, zoning, building and occupancy permits, architectural and engineering services, construction management services, environmental testing and reviews, and landscaping.

ALTA ENDORSEMENT FORM 13.1-06 (Leasehold-Loan)(Rev. 04/02/2012)




4. This endorsement does not insure against loss, damage or costs of remediation (and the Company will not

pay costs, attorneys’ fees or expenses) resulting from environmental damage or contamination. 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. Dated: By: Authorized Signatory ALTA ENDORSEMENT FORM 13.1-06 (Leasehold-Loan)(Rev. 04/02/2012)



LESSOR'S ESTOPPEL CERTIFICATE AND CONSENT AFFIDAVIT Date: File No: Escrow Agent: Underwriter: Lessor: Lessee: Affiant: Property: Affiant, being duly sworn, on oath affirms that the following statements are true: 1. Individual. I am the Lessor of the above described Property. Entity. I am the _________________________________________ (title) of Lessor, a

_______________________________________________ (type of entity), and I am authorized to make this affidavit on its behalf. Said Entity is the Lessor of the above described Property.





4. Consent to Assignment of Lease, if applicable. Lessor hereby consents to the assignment of the

Lease to __________________________________________________ (lease assignee), on _______________________________________________________.

Consent to Sublease, if applicable. Lessor hereby consents to the sublease of the above noted

lease to ____________________________________________________________ (sublessee), on ___________________________________________________________.


insurance on the Property and Affiant acknowledged that all parties are relying upon the truth of these statements. In consideration thereof, Affiant (and Lessor if Lessor is an entity) hereby agrees to indemnify and hold harmless Escrow Agent and Underwriter from any claims, costs, damages, causes of action, expenses and attorney's fees in any way arising from the inaccuracy of the above representations.



JURAT

State of

County of



JURAT State of

County of




LESSEE'S ESTOPPEL CERTIFICATE Date: File No: Escrow Agent: Underwriter: Lessor: Lessee: Affiant: Property: Affiant, being duly sworn, on oath affirms that the following statements are true: 1. Individual. I am the Lessee of the above described Property. Entity. I am the _________________________________________ (title) of Lessee, a

_______________________________________________ (type of entity), and I am authorized to make this affidavit on its behalf. Said Entity is the Lessee of the above described Property.






insurance on the Property and Affiant acknowledged that all parties are relying upon the truth of these statements. In consideration thereof, Affiant (and Lessee if Lessee is an entity) hereby agrees to indemnify and hold harmless Escrow Agent and Underwriter from any claims, costs, damages, causes of action, expenses and attorney's fees in any way arising from the inaccuracy of the above representations.


JURAT

State of

County of




JURAT

State of

County of








OK FUTURE ADVANCE ENDORSEMENT (Knowledge)-06

Purpose: This endorsement not only insures that advances made under the insured revolving line of credit loan are covered by the policy, but this endorsement also insures the priority of future advances and repayments and re-advances made under the loan subsequent to the Date of Policy, except for loss of priority for advances made after the insured has actual or constructive knowledge of intervening liens, encumbrances or other matters. In addition, this endorsement includes coverage for the consequences of a variable rate and negative amortization. Note: This endorsement is the Oklahoma modified version of the ALTA 14.1-06, to address limitations under Oklahoma law regarding priority of future advances. Because of this form change, this endorsement may not be designated as an ALTA form. Note that this endorsement contains a carve-out or exceptions for: (i) intervening liens or encumbrances for which the lender has actual or constructive knowledge; and (ii) mechanics’ liens.


Underwriting Requirements: 1. A review of the Insured Mortgage, must

verify that the loan documents expressly: (i) contemplate future advances; (ii) the repayment and re-advancement of the loan; and (iii) provides for variable rate of interest. Please note that it may be necessary to delete certain provisions of the endorsement if the Insured Mortgage does not provide for revolving credit or a variable rate of interest.





OK FUTURE ADVANCE ENDORSEMENT (Knowledge)-06 (2/3/11)



1. The insurance for Advances added by Sections 2 and 3 of this endorsement is subject to the exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, except Exclusion 3(d), the provisions of the Conditions, and the exceptions contained in Schedule B.

“Agreement,” as used in this endorsement, shall mean the note or loan agreement, the repayment of Advances under which is secured by the Insured Mortgage. “Advance,” as used in this endorsement, shall mean only an advance of principal made after the Date of Policy as provided in the Agreement, including expenses of foreclosure, amounts advanced pursuant to the Insured Mortgage to pay taxes and insurance, assure compliance with laws, or to protect the lien of the Insured Mortgage before the time of acquisition of the Title, and reasonable amounts expended to prevent deterioration of improvements, together with interest on those advances. “Changes in the rate of interest,” as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to a formula provided in the Insured Mortgage or the Agreement at Date of Policy. 2. The Company insures against loss or damage sustained by the Insured by reason of:

a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Advance.

b. The lack of priority of the lien of the Insured Mortgage as security for each Advance over any lien or encumbrance on the Title.

c. The invalidity or unenforceability or lack of priority of the lien of the Insured Mortgage as security for the Indebtedness, Advances and unpaid interest 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) the Insured Mortgage not complying with the requirements of state law of the state in which the Land is located to secure Advances. 3. The Company also insures against loss or damage sustained by the Insured by reason of:

a. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from any provisions of the Agreement that provide for (i) interest on interest, (ii) changes in the rate of interest, or (iii) the addition of unpaid interest to the Indebtedness.

b. Lack of priority of the lien of the Insured Mortgage as security for the Indebtedness, including any

unpaid interest that was added to principal in accordance with any provisions of the 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.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs,

attorneys’ fees, or expenses) resulting from:

a. The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for any 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;

b. The lien of real estate taxes or assessments on the Title imposed by governmental authority arising

after Date of Policy;


c. 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 disbursements with priority over the federal tax lien provided in the Internal Revenue Code (26 U.S.C.);

d. Any federal or state environmental protection lien; e. The lack of priority of any Advance made after the Insured has actual or constructive knowledge of

the existence of liens, encumbrances or other matters affecting the Land intervening between Date of Policy and the Advance, as to the intervening lien, encumbrance or other matter;

f. Usury, or any consumer credit protection or truth-in-lending law; or g. Any mechanic’s or materialmen’s lien.

5. The Indebtedness includes Advances. 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. Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory OK FUTURE ADVANCE ENDORSEMENT (Knowledge)-06 (2/3/11)





OK FUTURE ADVANCE ENDORSEMENT (Letter of Credit)-06

Purpose: This endorsement not only insures that advances or draws made under a letter of credit that is secured by the Insured Mortgage are covered by the policy, but this endorsement also insures the priority of said future advances made under the letter of credit subsequent to the Date of Policy, except for loss of priority for withdrawals are advances made after the insured has actual or constructive knowledge of intervening liens, encumbrances or other matters.

Note: the ALTA 14-06 is not available in Oklahoma. This endorsement is the Oklahoma modified version of the ALTA 14.2-06, to address limitations under Oklahoma law regarding priority of future advances. Because of this form change, this endorsement may not be designated as an ALTA form. Note that this endorsement contains a carve-out or exceptions for: (i) intervening liens or encumbrances for which the lender has actual or constructive knowledge; and (ii) mechanics’ liens.


Loan Policy

Underwriting Requirements: 1. A review of the Insured Mortgage must

verify that the loan documents expressly contemplate future advances or draws made under a letter of credit.





OK FUTURE ADVANCE ENDORSEMENT (Letter of Credit)-06 (2/3/11)

ENDORSEMENT


[FNTG Underwriter]

1. The insurance for Advances added by Section 2 of this endorsement is subject to the exclusions in Section 3

of this endorsement and the Exclusions from Coverage in the Policy, except Exclusion 3(d), the provisions of the Conditions, and the exceptions contained in Schedule B.

a. “Agreement,” as used in this endorsement, shall mean the letter of credit, and its reimbursement agreement, the repayment of Advances under which is secured by the Insured Mortgage.

b. “Advance,” as used in this endorsement, shall mean only an advance made after the Date of Policy as provided in the Agreement, including expenses of foreclosure, amounts advanced pursuant to the Insured Mortgage to pay taxes and insurance, assure compliance with laws, or to protect the lien of the Insured Mortgage before the time of acquisition of the Title, and reasonable amounts expended to prevent deterioration of improvements, together with interest on those advances.

2. The Company insures against loss or damage sustained by the Insured by reason of: a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Advance. b. The lack of priority of the lien of the Insured Mortgage as security for each Advance over any lien or

encumbrance on the Title. c. The invalidity or unenforceability or loss of priority of the lien of the Insured Mortgage as security for the

Indebtedness, Advances and unpaid interest 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) the Insured Mortgage not complying with the requirements of state law of the state in which the Land is located to secure Advances.

3. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees, or expenses) resulting from: a. The lien of real estate taxes or assessments on the Title imposed by governmental authority arising after

Date of Policy, or b. Any federal or state environmental protection lien, or c. Limitations, if any, imposed under the Bankruptcy Code (11 U.S.C.) on the amount that may be recovered

from the mortgagor's estate, or d. Any mechanic’s or materialmen’s lien, or e. The loss of priority of any Advance made after the Insured has actual or constructive knowledge of the

existence of liens, encumbrances or other matters affecting the Land intervening between Date of Policy and the Advance, as to the intervening lien, encumbrance or other matter.

4. The Indebtedness includes Advances.


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. Dated: ________________ [Title Agent] By: Authorized Signatory OK FUTURE ADVANCE ENDORSEMENT (Letter of Credit)-06 (2/3/11)




Suggested Premium:

15% of BPR (min. $75.00)

OK REVERSE MORTGAGE ENDORSEMENT-06

Purpose: This endorsement not only insures that advances made under the insured reverse mortgage loan are covered by the policy, but it also insures the priority of said future advances made under the loan subsequent to the Date of Policy, except for loss of priority for advances made after the insured has actual or constructive knowledge of intervening liens, encumbrances or other matters. In addition, it includes coverages for the consequences of a variable rate, negative amortization, or the failure of the Insured Mortgage to state the term or maximum dollar amount, or the failure of the mortgagors to be at least 62 years of age. Note: This endorsement is the Oklahoma modified version of the ALTA 14.3-06, to address limitations under Oklahoma law regarding priority of future advances. Because of this form change, this endorsement may not be designated as an ALTA form. Note that this endorsement contains a carve-out or exceptions for: (i) intervening liens or encumbrances for which the lender has actual or constructive knowledge; and (ii) mechanics’ liens.


Underwriting Requirements: 1. A review of the Insured Mortgage and

loan agreement must verify that the Insured Mortgage is a reverse mortgage and that it states a term or maximum dollar amount.

2. You must verify that the mortgagors are

at least 62 years old. 3. Regional Underwriting approval.




OK REVERSE MORTGAGE ENDORSEMENT-06

ENDORSEMENT


[FNTG Underwriter] 1. The insurance for Advances added by Sections 2 and 3 of this endorsement is subject to the exclusions in

Section 4 of this endorsement and the Exclusions in the Policy, except Exclusion 3(d), the provisions of the Conditions, and the exceptions contained in Schedule B.

a. "Agreement," as used in this endorsement, shall mean the note or loan agreement, repayment of

Advances under which is secured by the Insured Mortgage. b. "Advance," as used in this endorsement, shall mean only an advance of principal made after the

Date of Policy as provided in the Agreement, including expenses of foreclosure, amounts advanced pursuant to the Insured Mortgage to pay taxes and insurance, assure compliance with laws, or to protect the lien of the Insured Mortgage before the time of acquisition of the Title, and reasonable amounts expended to prevent deterioration of improvements, together with interest on those advances.

c. "Changes in the rate of interest," as used in this endorsement, shall mean only those changes in

the rate of interest calculated pursuant to a formula provided in the Insured Mortgage or the Agreement at Date of Policy.


a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Advance.

b. The lack of priority of the lien of the Insured Mortgage as security for each Advance over any lien

or encumbrance on the Title. c. The invalidity or unenforceability or lack of priority of the lien of the Insured Mortgage as security

for the Indebtedness, Advances and unpaid interest resulting from (i) re-Advances and repayments of Indebtedness, (ii) earlier periods of no indebtedness owing during the term of the Insured Mortgage, (iii) the Insured Mortgage not complying with the requirements of state law of the state in which the Land is located to secure Advances, (iv) failure of the Insured Mortgage to state the term for Advances, or (v) failure of the Insured Mortgage to state the maximum amount secured by the Insured Mortgage

d. The invalidity or unenforceability of the lien of the Insured Mortgage because of the failure of the

mortgagors to be at least 62 years of age at Date of Policy.

3. The Company also insures against loss or damage sustained by the Insured by reason of:

a. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from any provisions of the Agreement that provide for (i) interest on interest, (ii) changes in the rate of interest, or (iii) the addition of unpaid interest to the principal portion of the Indebtedness.

b. Lack of priority of the lien of the Insured Mortgage as security for the Indebtedness, including

any unpaid interest that was added to principal in accordance with any provisions of the 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.

"Interest" as used in this paragraph 3 shall include lawful interest based on appreciated value.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys'

fees or expenses) resulting from:

a. The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for any 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;

b. The lien of real estate taxes or assessments on the Title imposed by governmental authority

arising after Date of Policy; c. 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 disbursements with priority over the federal tax lien provided in the Internal Revenue Code (26 U.S.C.);

d. Any federal or state environmental protection lien; or e. Usury, or any consumer credit protection or truth-in-lending law; or f. Any mechanic’s or materialmen’s lien; or g. The loss of priority of any Advance made after the Insured has actual or constructive knowledge

of the existence of liens, encumbrances or other matters affecting the Land intervening between Date of Policy and the Advance, as to the intervening lien, encumbrance or other matter

5. The Indebtedness includes Advances.

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. Dated: ________________ [Title Agent] By: Authorized Signatory OK REVERSE MORTGAGE ENDORSEMENT-06



ALTA ENDORSEMENT FORM 15-06 (Non-Imputation- Full Equity Transfer)

Purpose: ALTA Form 15-06 is to be used when the entire beneficial interest of the entity holding title and named as the Insured in Schedule A (e.g., partnership interest, corporate stock, membership interest in a LLC) has been transferred for value. The new owner of the insured entity may want assurances from the underwriter that it will not raise its defenses under the policy matters affecting title that were known to those outgoing partners/members or officers/directors, but not disclosed to the underwriter.

Note: Because knowledge may be imputed to a lender through its agents, partners or other participating lenders, requests for this coverage may be made by the insured lender. This is quite common where the lender, in addition to lending money, participates directly or indirectly in the

development entity.


Loan Policy


Underwriting Requirements: This coverage constitutes an extra-hazardous risk and may be provided only when: 1. You have obtained Regional

Underwriting approval. 2. The company:

a. Has received adequate assurances in affidavit form that there are no matters known by the party or parties from whom knowledge is to be imputed to the insured entity;

b. Is provided with a satisfactory

indemnity from an appropriate and credit-worthy indemnitor; and

c. Has received and reviewed

acceptable current financial statements from a credit-worthy indemnitor.

d. Please note that Company may require additional information before issuing the endorsement.

SAMPLE FORMS AND ENDORSEMENTNITY ON

FOLLOWING PAGE



Exhibit A [Affiant to be personally liable on indemnity, e.g. a general partner]

State of _______________________) ) ss. County of _______________________)

Affidavit and Indemnity The undersigned, being first duly sworn, on oath, deposes and says the following: 1. The undersigned is ____________________ [title or capacity] of ______________ [name of entity] ________________________. 2. To the best knowledge of the undersigned, a. There are presently no defects in or liens, encumbrances or other claims against the title to the property

described in the Commitment for Title Insurance No. _______, having an Effective Date of ______________, issued by [insert name of the insuring company] (hereinafter referred to as “the Company”) other than as disclosed in exceptions Nos. ______on Schedule B -Section 2 of said commitment, other than the following: (If none, state “None”); and;

b. There are presently no inchoate rights which may ripen into any defect, lien, encumbrance or claim against

the title to said property except as may be created by any instrument or action required in Schedule B - Section 1 of said commitment, other than the following: (If none, state “None”)

3. The undersigned makes these statements after having questioned all of the other partners and the employees

and agents, if any, of [name of entity] who have had any substantial contact with any transaction of negotiation involving the property described in said Commitment.

4. The undersigned hereby indemnifies the Company and agrees to hold it harmless against any loss which the

Company may suffer by virtue of any valid claim made under the said endorsement based on the existence of any defect in or lien, encumbrance, right or claim against or with respect to the title to the aforesaid property which was not disclosed above but which should have been so disclosed in order to make all statements above true and correct.

The undersigned understands such losses may include court costs and attorney’s fees expended by the Company in defending the title or interest of the insured against such lien, encumbrance, right or claim.

5. The undersigned makes these statements and gives the aforesaid indemnity for the purpose of inducing the

Company to issue the endorsement attached hereto as Exhibit A to one or more of the owner’s or loan policies issued pursuant to the said Commitment for Title Insurance.

The undersigned further agrees to pay all court costs and reasonable attorney’s fees which the Company may expend in enforcing the terms of this indemnity agreement. Dated: ___________________________ ________________________________ [Name of Affiant & Indemnitor] [Standard form jurat and/or acknowledgment]


Exhibit B

[Affiant to be personally liable on indemnity, e.g. a corporate partner]

State of _______________________) ) ss.

County of _______________________)

Affidavit and Indemnity The undersigned, being first duly sworn, on oath, deposes and says the following: 1. The undersigned is ____________________________ [title or capacity] of

__________________________ [name of entity]. 2. To the best knowledge of the undersigned, a. There are presently no defects in or liens, encumbrances or other claims against the title to the property

described in the Commitment for Title Insurance No. _______, having an Effective Date of ______________, issued by [insert the name of the company insuring] (hereinafter referred to as “the Company”) other than as disclosed in exceptions Nos. ______ on Schedule B - Section 2 of said commitment, other than the following: (If none, state “None”); and

b. There are presently no inchoate rights which may ripen into any defect, lien, encumbrance or claim

against the title to said property except as may be created by any instrument or action required in Schedule B - Section 1 of said commitment, other than the following: (If none, state “None”)

3. The undersigned makes these statements after having questioned all of the other officers, directors,

employees, partners and agents, if any, of [name of entity] who have had any substantial contact with any transaction of negotiation involving the property described in said Commitment.

4. The undersigned makes these statements for the purpose of inducing the Company to issue the

endorsement attached hereto as Exhibit A to one or more of the owner’s or loan policies issued pursuant to the said Commitment for Title Insurance.

Dated: ______________________________

____________________________________

[Name of Affiant] The following indemnity is given to the Company as a further inducement to it to issue the said endorsement, as aforesaid. The undersigned hereby indemnifies the Company against any loss which the Company may suffer by virtue of any valid claim made under the said endorsement based on the existence of any defect in or lien, encumbrance, right or claim against or with respect to the title to the aforesaid property which was not disclosed in the above affidavit but which should have been so disclosed in order to make all statements in the affidavit true and correct. The undersigned understands such losses may include court costs and attorney’s fees expended by the Company in defending the title or interest of the insured against such lien, encumbrance, right or claim.


The undersigned further agrees to pay all court costs and reasonable attorney’s fees which the Company may expend in enforcing the terms of this indemnity agreement. Dated: ______________________________ [Name of Company] By: _________________________________

[Name and title of officer] [Standard form jurat and/or acknowledgment]


[NOTE: ENTITY AS THE NAMED INSURED AND VESTEE OF THE INSURED ESTATE OR INTEREST IDENTIFIED IN SCHEDULE A] ALTA ENDORSEMENT FORM 15-06 (Non-Imputation – Full Equity Transfer)(6/17/06)



The Company agrees that it will not assert the provisions of Exclusions from Coverage 3(a), (b), or (e) to deny liability for loss or damage otherwise insured against under the terms of the policy solely by reason of the action or inaction or Knowledge, as of Date of Policy, of [identify exiting or contributing partner(s) of the insured partnership entity, member(s) or manager(s) of the insured limited liability company entity, or officer(s) and/or director(s) of the insured corporate entity], whether or not imputed to the Insured by operation of law, provided [identify the "incoming" partners, members or shareholders] acquired the Insured as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by the policy. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 15.1-06 (Non-Imputation- Additional Insured)

Purpose: This endorsement is to be used when only a portion of the beneficial interest of the entity holding title and named as the Insured in Schedule A has been transferred, and the incoming beneficial owner is identified on the form as an additional insured. Unlike the ALTA Form 15-06, the coverage in this endorsement is not designed to protect the Insured entity itself, but instead to protect one or more of the so-called "innocent parties" that have an interest in the named entity. Note: Because knowledge may be imputed to a lender through its agents, partners or other participating lenders, requests for this coverage may be made by the insured lender. This is quite common where the lender, in addition to lending money, participates directly or indirectly in the

development entity.


Loan Policy



Underwriting approval; and 2. The company:

a. Has received adequate assurances in affidavit form that there are no matters known by the party or parties from whom knowledge is to be imputed to the insured entity;

b. Is provided with a satisfactory

indemnity from an appropriate and credit-worthy indemnitor; and

c. Has received and reviewed

acceptable current financial statements from a credit-worthy indemnitor.

d. Please note that Company may require additional information before before issuing the endorsement.

SAMPLE FORMS AND ENDORSEMENT ON

FOLLOWING PAGE


















Exhibit B


State of _______________________) ) ss.

County of _______________________)










Dated: ______________________________

____________________________________






[NOTE: ENTITY AS THE NAMED INSURED IN THE POLICY AND VESTEE OF THE INSURED ESTATE OR INTEREST IDENTIFIED IN SCHEDULE A] ALTA ENDORSEMENT FORM 15.1-06 (Non-Imputation – Additional Insured)(6/17/06)



For purposes of the coverage provided by this endorsement, [identify the "incoming" partner, member or shareholder] (“Additional Insured”) is added as an Insured under the policy. By execution below, the Insured named in Schedule A acknowledges that any payment made under this endorsement shall reduce the Amount of Insurance as provided in Section 10 of the Conditions. The Company agrees that it will not assert the provisions of Exclusions from Coverage 3(a), (b), or (e) to deny liability for loss or damage otherwise insured against under the terms of the policy solely by reason of the action or inaction or Knowledge, as of Date of Policy, of [identify, as applicable, the existing and/or exiting partner(s) of the insured partnership entity, member(s) or manager(s) of the insured limited liability company entity, or officer(s) and/or director(s) of the insured corporate entity], whether or not imputed to the Additional Insured by operation of law, to the extent of the percentage interest in the Insured acquired by Additional Insured as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by the policy. 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. AGREED AND CONSENTED TO: INSURED Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 15.2-06 (Non-Imputation- Partial Equity Transfer)

Purpose: This endorsement is used when an incoming beneficial owner requests its own policy, and its interest has been transferred for value. Unlike the ALTA Form 15-06, the coverage in this endorsement is not designed to protect the Insured entity itself, but instead to protect one or more of the so-called "innocent parties" that have an interest in the named entity.

Note: Because knowledge may be imputed to a lender through its agents, partners or other participating lenders, requests for this coverage may be made by the insured lender. This is quite common where the lender, in addition to lending money, participates directly or indirectly in the

development entity.


Loan Policy



Underwriting approval; and 2. The company:

a. Has received adequate

assurances in affidavit form that there are no matters known by the party or parties from whom knowledge is to be imputed to the insured entity;

b. Is provided with a satisfactory indemnity from an appropriate and credit-worthy indemnitor; and

c. Has received and reviewed acceptable current financial statements from a credit-worthy indemnitor.

d. Please note that Company may require additional information before issuing the endorsement.

SAMPLE FORMS AND ENDORSEMENT ON

FOLLOWING PAGE


















Exhibit B


State of _______________________) ) ss.

County of _______________________)










Dated: ______________________________

____________________________________






[NOTE: INCOMING PARTNER, MEMBER, OR SHAREHOLDER, AS THE NAMED INSURED IN ITS OWN POLICY, WHERE THE VESTEE OF THE INSURED ESTATE OR INTEREST IDENTIFIED IN SCHEDULE A IS A PARTNERSHIP, LIMITED LIABILITY COMPANY OR CORPORATION] ALTA ENDORSEMENT FORM 15.2-06 (Non-Imputation – Partial Equity Transfer)(6/17/06)



The Company agrees that it will not assert the provisions of Exclusions from Coverage 3(a), (b), or (e) to deny liability for loss or damage otherwise insured against under the terms of the policy solely by reason of the action or inaction or Knowledge, as of Date of Policy, of [identify, as applicable, the existing and/or exiting partner(s) of the vestee partnership entity, member(s) or manager(s) of the vestee limited liability company entity, or officer(s) and/or director(s) of the vestee corporate entity], whether or not imputed to the entity identified in paragraph 3 of Schedule A or to the Insured by operation of law, but only to the extent that the Insured acquired the Insured's interest in entity as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by the policy. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 16-06 (Mezzanine Financing)

Purpose: This endorsement is issued to a mezzanine lender whose loan is not secured by a lien against the land, but instead is secured by a security interest in the beneficial interest of a business entity that owns the land (i.e., stock in the corporation, partnership interest in the partnership, etc.). The endorsement is actually made a part of the owner policy, as the mezzanine lender’s personal property security interest is not insured. Some of the highlights provided for in the endorsement are: (i) the rights of the insured owner are assigned to the mezzanine lender; (ii) it provides that the Company will not assert as a defense matters known to the insured owner as long as they were not known by the mezzanine lender; and (iii) it provides the Company will not deny liability on the basis that the ownership interests in the insured owner have been transferred to or acquired by the mezzanine lender.



Underwriting Requirements: 1. Regional Underwriting approval.

2. The Insured under the Owner's Policy

(corporation, partnership, limited liability company or other business entity) has agreed to assign to the mezzanine lender the amounts payable under the policy as indicated by the Insured's signature at the end of the endorsement, and the terms of the endorsement are accepted by the mezzanine lender as indicated by its signature on the endorsement.

3. The requirements for issuance of an ALTA Form 15-06 have been met. That is, the Company requires acceptable assurances that there are no matters known by the party or parties from whom knowledge is to be imputed. In most cases this assurance would be in the form of a sworn statement from the party together with a satisfactory indemnity.

4. If the Insured is also insured by the Company under a different Owner's Policy, the benefits of the policy must be coordinated with the benefits of the policy to which the endorsement will be attached. This may be accomplished by adding to Schedule B of the previously issued Owner's Policy the following:

"It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under Owner's Policy Number [new policy] in the amounts so paid shall be deemed a payment under this policy to the Insured owner."




ALTA ENDORSEMENT FORM 16-06 (Mezzanine Financing) (6/17/06)



1. The Mezzanine Lender is: [INSERT NAME OF MEZZANINE LENDER] and each successor in ownership of

its loan (“Mezzanine Loan”) reserving, however, all rights and defenses as to any successor that the Company would have had against the Mezzanine Lender, unless the successor acquired the indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by this policy as affecting Title.

2. The Insured

a. assigns to the Mezzanine Lender the right to receive any amounts otherwise payable to the Insured under this policy, not to exceed the outstanding indebtedness under the Mezzanine Loan; and

b. agrees that no amendment of or endorsement to this policy can be made without the written consent of

the Mezzanine Lender. 3. The Company does not waive any defenses that it may have against the Insured, except as expressly stated

in this endorsement. 4. In the event of a loss under the policy, the Company agrees that it will not assert the provisions of Exclusions

from Coverage 3(a), (b) or (e) to refuse payment to the Mezzanine Lender solely by reason of the action or inaction or Knowledge, as of Date of Policy, of the Insured, provided

a. the Mezzanine Lender had no Knowledge of the defect, lien, encumbrance or other matter creating or causing loss on Date of Policy.

b. this limitation on the application of Exclusions from Coverage 3(a), (b) and (e) shall

i. apply whether or not the Mezzanine Lender has acquired an interest (direct or indirect) in the Insured

either on or after Date of Policy, and ii. benefit the Mezzanine Lender only without benefiting any other individual or entity that holds an

interest (direct or indirect) in the Insured or the Land.

5. In the event of a loss under the Policy, the Company also agrees that it will not deny liability to the Mezzanine Lender on the ground that any or all of the ownership interests (direct or indirect) in the Insured have been transferred to or acquired by the Mezzanine Lender, either on or after the Date of Policy.

6. The Mezzanine Lender acknowledges

a. that the Amount of Insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is hereafter executed by an Insured and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment under this policy; and

b. that the Company shall have the right to insure mortgages or other conveyances of an interest in the

Land, without the consent of the Mezzanine Lender.




7. If the Insured, the Mezzanine Lender or others have conflicting claims to all or part of the loss payable under the Policy, the Company may interplead the amount of the loss into Court. The Insured and the Mezzanine Lender shall be jointly and severally liable for the Company's reasonable cost for the interpleader and subsequent proceedings, including attorneys' fees. The Company shall be entitled to payment of the sums for which the Insured and Mezzanine Lender are liable under the preceding sentence from the funds deposited into Court, and it may apply to the Court for their payment.

8. Whenever the Company has settled a claim and paid the Mezzanine Lender pursuant to this endorsement,

the Company shall be subrogated and entitled to all rights and remedies that the Mezzanine Lender may have against any person or property arising from the Mezzanine Loan. However, the Company agrees with the Mezzanine Lender that it shall only exercise these rights, or any right of the Company to indemnification, against the Insured, the Mezzanine Loan borrower, or any guarantors of the Mezzanine Loan after the Mezzanine Lender has recovered its principal, interest, and costs of collection.

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. AGREED AND CONSENTED TO: [INSERT NAME OF INSURED] [INSERT NAME OF MEZZANINE LENDER] By: _______________________________________ Name:_________________________________ Title: ________________________________ By: _______________________________________ Name:_________________________________ Title: ________________________________ By: _______________________________________ Name:_________________________________ Title: ________________________________ Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 16-06 (Mezzanine Financing) (6/17/06)




ALTA ENDORSEMENT FORM 17-06 (Access and Entry)

Purpose: This endorsement is designed to provide insurance against loss if, at Date of Policy, the insured Land does not abut or have actual vehicular and pedestrian access to and from a specific open and publicly maintained street by way of existing curb

cuts or entries.

Policy To Be Endorsed: Owners Policy

Loan Policy

Suggested Premium: $75 .00

Underwriting Requirements: 1. A review of a current acceptable survey

verifies: a. The insured property abuts and has both actual vehicular and pedestrian access to the specifically named street; b. The specifically named street is open and publicly maintained; and c. The existence of a curb cut from the Land to the insured. If no curb cut exist, you must obtain a satisfactory written assurance from the appropriate government entity controlling the street (e.g., city, county or state) that there is no limitation on the right to access such street . 2. If the Land abuts a physically open

private street, this coverage may not be given without Regional Underwriting approval.




ALTA ENDORSEMENT FORM 17-06 (Access and Entry)(6/17/06)



The Company insures against loss or damage sustained by the Insured if, at Date of Policy: (i) the Land does not abut and have both actual vehicular and pedestrian access to and from [insert name of street, road or highway] (the “Street”), (ii) the Street is not physically open and publicly maintained, or (iii) the Insured has no right to use existing curb cuts or entries along that portion of the Street abutting the Land. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 17.1-06 (Indirect Access and Entry)

Purpose: This endorsement is designed to provide insurance against loss if, at Date of Policy, the insured Land does not abut and have actual vehicular and pedestrian access over an easement tract insured in Schedule A and identified in the endorsement, and the specified easement connects the Land to and from a specific open and publicly maintained street by way of existing curb

cuts or entries.


Loan Policy


Underwriting Requirements: 1. You must determine that the easement

to be identified in the endorsement is insurable and is scheduled as an insured estate on Schedule A of the policy.

2. A review of a current acceptable survey

verifies:

a. The specific easement to be insured and named in the endorsement abuts the Land, and that this access easement is in fact physically open;

b. The specific street named in the

endorsement abuts the easement tract identified in the endorsement, and that the street in fact is both physically open and publicly maintained; and

c. The existence of a curb cut from the access easement identified in the endorsement to the street specified in the endorsement. If no curb cut exist, you must obtain a satisfactory written assurance from the appropriate government entity controlling the street (e.g., city, county or state) that there is no limitation on the right to access such street .

3. The examiner must verify that there is

nothing to prohibit access either legally or physically.

4. If the specified easement abuts a

physically open private street, this coverage may not be given without Regional Underwriting approval.




ALTA ENDORSEMENT FORM 17.1-06 (Indirect Access and Entry) (6/17/06)

ENDORSEMENT


[FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured if, at Date of Policy: (i) the easement identified [as Parcel_______] in Schedule A (the “Easement”) does not provide that portion of the Land identified [as Parcel___] in Schedule A both actual vehicular and pedestrian access to and from [insert name of street, road or highway] (the “Street”), (ii) the Street is not physically open and publicly maintained, or (iii) the Insured has no right to use existing curb cuts or entries along that portion of the Street abutting the Easement. 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.

Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory




ALTA ENDORSEMENT FORM 17.2-06 (Utility Access)

Purpose: This endorsement provides insurance against loss if, at Date of Policy, the insured Land does not have access to specified

utility services.


Loan Policy

Suggested Premium: Contact Regional Underwriting

Underwriting Requirements: 1. This endorsement is considered to be

extra hazardous and requires Regional Underwriting approval.

2. A comprehensive survey is required.

The examiner must review the survey and private utility easements relied upon (if any) and confirm the following:

a. The Land adjoins the public right-of-

way in which the utility lines are located, and there are no gaps or gores in between;

b. The private easements (if any)

providing the services listed on the endorsement are: (i) insurable; (ii) they are shown on the survey; and (iii) they abut the property with no gaps or gores; and

c. The Land is improved;

3. You must obtain an acceptable affidavit

from the seller or borrower that the Land is serviced by all of the utilities recited in the endorsement.




ALTA ENDORSEMENT FORM 17.2-06 (Utility Access) (10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of the lack of a right of access to the following utilities or services: [CHECK ALL THAT APPLY]

Water service Natural gas service Telephone service Electrical power service Sanitary sewer Storm water drainage [________________] [______________] [______________]

either over, under or upon rights-of-way or easements for the benefit of the Land because of:

(1) a gap or gore between the boundaries of the Land and the rights-of-way or easements; (2) a gap between the boundaries of the rights-of-way or easements; or (3) a termination by a grantor, or its successor, of the rights-of-way or easements.





ALTA ENDORSEMENT FORM 18-06 (Single Tax Parcel)

Purpose: Insures the insured owner or lender against loss or damage if the tax parcel or tax identification number shown in the endorsement does not include all of the Land described in the policy, or includes land not

described the policy

Policy To Be Endorsed: Owner’s Policy Loan Policy


Underwriting Requirements: 1. An examination of the legal description

of the insured Land and the legal description of the land used by the taxing authorities confirms: (i) that the Insured Land corresponds with the tax description and the tax identification number; and (ii) that the tax description does not include other land.

2. If the Insured Land includes only a

portion of a tax description, this endorsement may not be given.




ALTA ENDORSEMENT FORM 18-06 (Single Tax Parcel) (6/17/06)

ENDORSEMENT


[FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of the Land being taxed as part of a larger parcel of land or failing to constitute a separate tax parcel for real estate taxes. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 18.2-06 (Multiple Tax Parcel)

Purpose: Same as the ALTA 18-06, but this endorsement is used when the insured land constitutes multiple parcels. Underwriting Note: The ALTA 18.1-06 is not available in

Oklahoma.


Loan Policy


Underwriting Requirements: Same requirements as the ALTA 18-06.




ALTA ENDORSEMENT FORM 18.2-06 (Multiple Tax Parcels)(08/101/16)

ENDORSEMENT


[FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of those portions of the Land identified below not being assessed real estate taxes under the listed Tax Identification Numbers or those Tax Identification Numbers including any additional land:

Parcel: [insert parcel name/number as depicted in policy] Tax Identification Number(s): [insert Tax Identification Numbers of parcel] Parcel: [insert parcel name/number as depicted in policy] Tax Identification Number(s): [insert Tax Identification Numbers of parcel] Parcel: [insert parcel name/number as depicted in policy] Tax Identification Number(s): [insert Tax Identification Numbers of parcel] 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory




ALTA ENDORSEMENT FORM 19-06 (Contiguity- Multiple Parcels)

Purpose: Provides the insured owner or lender with coverage against loss or damage by reason of the failure of specifically identified parcels of land being insured in the policy to be contiguous to each other.


Loan Policy


Underwriting Requirements: A review of a current and acceptable survey must verify:

1. That the different parcels of land are

properly identified and shown on the survey.

2. There are no gaps existing between the property lines of the different parcels of land.

3. A satisfactory survey certification confirms the above matters.

4. Providing this coverage on some other basis (for example, because the parcels are adjacent lots in the same subdivision or because the line which separates them in a metes and bounds description has identical points of beginning and identical calls to describe that line) may only be done with Regional Underwriting approval.




ALTA ENDORSEMENT FORM 19-06 (Contiguity – Multiple Parcels)(6/17/06)

ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of:

1. the failure [of the ______ boundary line of Parcel A] of the Land to be contiguous to [the ______ boundary line of Parcel B] [for more than two parcels, continue as follows: “; of [the ______ boundary line of Parcel B] of the Land to be contiguous to [the ______ boundary line of Parcel C] and so on until all contiguous parcels described in the policy have been accounted for]; or

2. the presence of any gaps, strips, or gores separating any of the contiguous boundary lines

described above. 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. Dated: ________________ [Title Agent] By:_________________________________________ Authorized Signatory




ALTA ENDORSEMENT FORM 19.1-06 (Contiguity- Single Parcel)

Purpose: Provides the insured owner or lender with coverage against loss or damage by reason of the failure of the Insured Land to be contiguous to another specifically identified parcel of land that is not insured in the policy.


Loan Policy


Underwriting Requirements: 1. A review of a current and acceptable

survey must verify:

a. That the Insured Land and the

other identified parcel of land (not being insured) is properly identified and shown on a single survey.

b. There are no gaps existing

between the property lines of the different parcels of land.

c. A satisfactory survey

certification confirms the above matters.

2. Providing this coverage on some

other basis (for example, because the parcels are adjacent lots in the same subdivision or because the line which separates them in a metes and bounds description has identical points of beginning and identical calls to describe that line) may only be done with the approval of Regional Underwriting.

3. A request to issue this endorsement

without a single survey showing both parcels together with a certification on the survey that both parcels are contiguous must be referred to Regional Underwriting.




[NOTE: FOR USE WHEN THE INSURED DESIRES CONTIGUITY COVERAGE BETWEEN THE "LAND" AS DEFINED IN THE POLICY AND SOME OTHER PARCEL OF LAND] ALTA ENDORSEMENT FORM 19.1-6 (Contiguity-Single Parcel)(6/17/06)

ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of:

1. the failure of the Land to be contiguous to [describe the land that is contiguous to the Land

by its legal description or by reference to a recorded instrument – e.g. “. . . that certain parcel of real property legally described in the deed recorded as Instrument No. , records of County, State of ] along the ______ boundary line[s]; or

2. the presence of any gaps, strips, or gores separating the contiguous boundary lines described

above. 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.






ALTA ENDORSEMENT Form 20-06 (First Loss)

Purpose: This endorsement allows for a "loss" to be recognized whenever a covered title defect materially impairs the value of a parcel securing the loan without first requiring the acceleration of the debt and foreclosure against any of the parcels securing the loan. This endorsement is to be issued only when there is more than one parcel and is generally requested in commercial multi-site transactions where multiple properties covered by separate loan policies secure the

same indebtedness.


Loan Policy


Underwriting Requirements: 1. Regional Underwriting approval. 2. This endorsement may not be issued for

loan policies insuring only one parcel of land.

3. You must review the Insured Mortgage

instrument to confirm that the instrument includes warranties of title from the borrower or mortgagor to the secured lender. In cases where the borrower's/mortgagor's warranties of title have been removed from the security instrument, contact Regional Underwriting.




ALTA ENDORSEMENT FORM 20-06

(First Loss-Multiple Parcel Transactions)(6/17/06)

ENDORSEMENT Attached to Policy No.


This endorsement is effective only if the Collateral includes at least two parcels of real property. 1. For the purposes of this endorsement

a. “Collateral” means all property, including the Land, given as security for the Indebtedness. b. “Material Impairment Amount” means the amount by which any matter covered by this policy for

which a claim is made diminishes the value of the Collateral below the Indebtedness.

2. In the event of a claim resulting from a matter insured against by this policy, the Company agrees to pay that portion of the Material Impairment Amount that does not exceed the limits of liability imposed by Sections 2 and 8 of the Conditions without requiring

a. maturity of the Indebtedness by acceleration or otherwise, b. pursuit by the Insured of its remedies against the Collateral, c. pursuit by the Insured of its remedies under any guaranty, bond or other insurance policy.

3. Nothing in this endorsement shall impair the Company’s right of subrogation. However, the Company agrees that its right of subrogation shall be subordinate to the rights and remedies of the Insured. The Company’s right of subrogation shall include the right to recover the amount paid to the Insured pursuant to paragraph 2 from any debtor or guarantor of the Indebtedness, after payment or other satisfaction of the remainder of the Indebtedness and other obligations secured by the lien of the Insured Mortgage. The Company shall have the right to recoup from the Insured Claimant any amount received by it in excess of the Indebtedness up to the amount of the payment under paragraph 2.







ALTA ENDORSEMENT FORM 21-06 (Creditors' Rights) This endorsement form was decertified by ALTA on February 8, 2010, and is no longer available.




ALTA ENDORSEMENT Form 22-06 (Location)

Purpose: This endorsement insures against loss or damage if an improvement of the type identified in the endorsement and having the address set forth in the endorsement is not located on the Land.


Loan Policy


Underwriting Requirements: A current and acceptable survey and the tax records must verify the property location, address, and identify and locate the improvements on the Land. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 22-06 (Location)(6/17/06)



The Company insures against loss or damage sustained by the Insured by reason of the failure of a [description of improvement], known as [street address], to be located on the Land at Date of Policy. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory




ALTA ENDORSEMENT Form 22.1-06 (Location and Map)

Purpose: This endorsement insures against loss or damage if an improvement of the type identified in the endorsement and having the address set forth in the endorsement is not located on the Land. In addition, the endorsement insures that a copy of a recorded plat or map that may be attached as an exhibit to the endorsement accurately reflects the location and dimensions of the Land as shown in the public records.


Loan Policy


Underwriting Requirements: 1. A current and acceptable survey and the

tax records must verify the property location, address, and identify and locate the improvements on the Land.

2. Use of the ALTA Form 22.1-06 endorsement, to which a copy of a recorded plat or map must be attached, is not universal. Great care should be taken in the type of attachment, which should be limited to copies of instruments taken directly from the public records that are verified to be a true and correct. The use of a survey or sketches taken from other sources, and that includes more or different information than the recorded plat, could expose the Company to increased liability.

3. Regional Underwriting approval. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 22.1-06 (Location and Map)(6/17/06)



The Company insures against loss or damage sustained by the Insured by reason of the failure of (i) a [description of improvement], known as [street address], to be located on the Land at Date of Policy or (ii) the map, if any, attached to this policy to correctly show the location and dimensions of the Land according to the Public Records. 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. Dated: ________________

[Title Agent] By: Authorized Signatory




ALTA ENDORSEMENT Form 23-06 (Co-insurance-Single Policy)

[Where FNTG is the Lead Underwriter]

Purpose: This endorsement was designed to facilitate the delivery of a single policy when co-insurance with other underwriters is involved, with allocations of each co-insuring underwriter's liability being reflected by the endorsement. Instead of having multiple policies from multiple underwriters, each in a percentage or fractional dollar amount, which in a multi-site deal could result in tens or hundreds of policies, the Insured may want to have just one policy for each site that all participating underwriters agree will act as their policy in

form and substance.


Loan Policy

Suggested Premium: BPR based upon the Company's allocated amount of liability for the co-insurance

transaction.

Underwriting Requirements: 1. Open a file and produce a policy with the

FNTG policy number on it. The amount of this policy is not the aggregate policy now on the endorsement. The Amount of Insurance on Schedule A of the Policy must be the Amount of Insurance allocated to FNTG. It may be additionally shown as a percentage of the Aggregate Amount of Insurance amount reflected on the endorsement. The FNTG policy should contain a footnote similar to the following:

"This policy is issued contemporaneously with the policies reflected on the Co--Insurance Endorsement attached hereto, which policy total the Aggregate Amount of Insurance has shown their in. Is understood and agreed that for all loss or aggregate losses against which said policies protect, the Company shall be liable only for the Percentage of Liability up to the Amount of Insurance as allocated to the Company there in. In no event shall the Company be liable for loss in excess of the Amount of Insurance and shown their in."

2. Prepare a sample endorsement with the

information supplied by the other underwriters (co-insurers) and send it to the other underwriters (co-insurers) so they may fill in any of their missing policy information in the appropriate place in the endorsement.

3. The local Oklahoma issuing agent must sign the policy and the co-insurance endorsement. The endorsement must also contain the countersignature of a Regional l underwriting attorney.

a. Report the Policy. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT Form 23-06 (Co-Insurance – Single Policy)(Rev. 10/16/08)

Attached to Policy No. [Lead Policy]

Issued by

[Lead Policy Issuer] (“Issuing Co-Insurer”)

CO-INSURANCE ENDORSEMENT

Attached to and made a part of Issuing Co-Insurer’s Policy No. [Lead Policy] (“Co-Insurance Policy”). Each title insurance company executing this Co-Insurance Endorsement, other than the Issuing Co-Insurer, shall be referred to as a “Co-Insurer.” Issuing Co-Insurer and each Co-Insurer are collectively referred to as “Co-Insuring Companies.” 1. By issuing this endorsement to the Co-Insurance Policy, each of the Co-Insuring Companies adopts the Co-Insurance Policy’s Covered Risks, Exclusions, Conditions, Schedules and endorsements, subject to the limitations of this endorsement.

Co-Insuring Companies

Name and Address Policy Number [File Number]

Amount of Insurance

Percentage of Liability

Issuing Co-Insurer $

Co-Insurer $

Co-Insurer $

Co-Insurer $

Aggregate Amount of Insurance

$

2. Each of the Co-Insuring Companies shall be liable to the Insured only for its Percentage of Liability of: (a) the total of the loss or damage under the Co-Insurance Policy, but in no event greater than its respective Amount of Insurance set forth in this endorsement; and (b) costs, attorneys’ fees and expenses provided for in the Conditions. 3. Any notice of claim and any other notice or statement in writing required to be given under the Co-Insurance Policy must be given to each of the Co-Insuring Companies at its address set forth above. 4. Any endorsement to the Co-Insurance Policy issued after the date of this Co-Insurance Endorsement must be signed on by each of the Co-Insuring Companies by its authorized officer or agent. 5. This Co-Insurance Endorsement is effective as of the Date of Policy of the Co-Insurance Policy. This Co-Insurance Endorsement may be executed in counterparts.




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 to it. Dated: __________________________

Issuing Co-Insurer: [lead underwriter] BY: _____________________________

Co-Insurer: [BLANK] Title Insurance Company By: ______________________________ Co-Insurer: [BLANK] Title Insurance Company By: ______________________________ Co-Insurer: [BLANK] Title Insurance Company By: ______________________________ [Additional Co-Insurer signatures may be added if needed.]

ALTA ENDORSEMENT Form 23-06 (Co-Insurance – Single Policy)(Rev. 10/16/08)





ALTA ENDORSEMENT Form 23-06 (Co-insurance-Single Policy)

[Where FNTG is not the Lead Underwriter]

Purpose: This endorsement was designed to facilitate the delivery of a single policy when co-insurance with other underwriters is involved, with allocations of each co-insuring underwriter's liability being reflected by the endorsement. Instead of having multiple policies from multiple underwriters, each in a percentage or fractional dollar amount, which in a multi-site deal could result in tens or hundreds of policies, the Insured may want to have just one policy for each site that all participating underwriters agree will act as their policy in

form and substance.


Loan Policy


transaction.

Underwriting Requirements: 1. Open a file and produce a policy with

the FNTG policy number on it. That policy must agree in all aspects, except amount, with the policy written by the lead underwriter ("issuing co-insurer"). If you do not agree with any of the provisions or coverage is issued by the the underwriter ("issuing co-insurer"), you cannot issue this endorsement.

2. Prepare and deliver this endorsement (not the FNTG underlying policy) to the Insured. Often the endorsement will be prepared by the lead underwriter (co-insurer), who has collected all of the policy amounts and file information. If that is the case you may sign the endorsement after verifying that:

The Issuing Co-Insurer’s policy number

is in the first blank in the heading;

The FNTG underwriter is shown as one of the Co-Insurers in the list of CO-Insuring Companies in the appropriate place in the endorsement. The Amount of Insurance, Percentage of Liability, policy information and claims address must be checked. The lead underwriter ("Issuing co-insurer") may fill in the Amounts and Percentages for the policies and send it to you for the FNTG policy number and signature. Keep a copy of the signed endorsement in the FNTG policy file.

3. The local Oklahoma issuing agent must

sign the policy and co-insurance endorsement; The endorsement must also contain the countersignature of a Regional underwriting attorney.

4. Report and remit premium on the amount of the FNTG policy the you produced for the file.

SAMPLE ENDORSEMENT ON PAGE 156




ALTA ENDORSEMENT Form 23.1-06 (Co-insurance-Multiple Policies)

Purpose: This endorsement was designed to be issued when a co-insurer is also issuing an ALTA series 12-06 Aggregation endorsement to the lender.


Loan Policy


transaction.

Underwriting Requirements: 5. Same as for the ALTA 23-06 except that

the co-insurer must issue its own ALTA series 12-06 Aggregation endorsement to the lender to "tie-in" the other policies issued by the co-insurer.

SAMPLE ENDORSEMENT ON PAGE 156



ALTA ENDORSEMENT FORM 23.1-06 (Co-Insurance-Multiple Policies)(8-01-16)


Issued by [FNTG Underwriter}

(“Issuing Co-Insurer”) Attached to and made a part of Issuing Co-Insurer’s Policy No. _____________ (“Co-Insurance Policy”). Each title insurance company executing this endorsement, other than the Issuing Co-Insurer, shall be referred to as a “Co-Insurer.” Issuing Co-Insurer and each Co-Insurer are collectively referred to as “Co-Insuring Companies.” 1. By issuing this endorsement to the Co-Insurance Policy, each of the Co-Insuring Companies adopts the

Co-Insurance Policy’s Covered Risks, Exclusions, Conditions, Schedules, and endorsements, except an [ALTA Aggregation Endorsement (ALTA 12-06 or ALTA 12.1-06)][ALTA 12-06 or ALTA 12.1-06 Aggregation Endorsement], if any, issued by any other Co-Insuring Company, subject to the limitations of this endorsement.

Co-Insuring Companies Name and Address Policy Number [File Number]

Amount of Insurance

Percentage of Liability

Issuing Co-Insurer $

Co-Insurer $

Co-Insurer $

Co-Insurer $

Total Co-Insurance Amount $

2. If the Co-Insurance Policy is aggregated with other policy liability of the Issuing Co-Insurer using [either]

an [ALTA Aggregation Endorsement (ALTA 12-06 or ALTA 12.1-06)][ALTA 12-06 or ALTA 12.1-06 Aggregation Endorsement], each Co-Insurer’s policy liability is aggregated with that of Issuing Co-Insurer, but only to the extent that Co-Insurer issues its own [ALTA Aggregation Endorsement (ALTA 12-06 or ALTA 12.1-06)][ALTA 12-06 or ALTA 12.1-06 Aggregation Endorsement] showing that Co-Insurer’s policy liability and Aggregate Amount of Insurance is consistent with the [a][A]ggregation [e][E]ndorsements of Issuing Co-Insurer.

3. Each of the Co-Insuring Companies shall be liable to the Insured only for its Percentage of Liability of: (a) the total loss or damage under the Co-Insurance Policy, but in no event greater than its respective

Aggregate Amount of Insurance set forth in its [ALTA Aggregation Endorsement (ALTA 12-06 or ALTA 12.1-06)][ALTA 12-06 or ALTA 12.1-06 Aggregation Endorsement], if any; and

(b) the costs, attorneys’ fees, and expenses provided for in the Conditions.

4. Any notice of claim and any other notice or statement in writing required to be given under the Co-Insurance Policy must be given to each of the Co-Insuring Companies at [its][the] address set forth above.

5. Any endorsement to the Co-Insurance Policy issued after the date of this endorsement must be signed by [each of the Co-Insuring Companies by authorized officer or agent][an authorized officer or agent of each of the Co-Insuring Companies].

6. This endorsement is effective as of the Date of Policy of the Co-Insurance Policy. This endorsement may be executed in counterparts.


This endorsement is issued as part of the Co-Insurance 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. DATED: Issuing Co-Insurer: BLANK TITLE INSURANCE COMPANY By: Co-Insurer: BLANK TITLE INSURANCE COMPANY By: Co-Insurer: BLANK TITLE INSURANCE COMPANY By: Co-Insurer: BLANK TITLE INSURANCE COMPANY By: [Additional Co-Insurer signatures may be added if needed.]

ALTA ENDORSEMENT FORM 23.1-06 (Co-Insurance-Multiple Policies)(8-01-16)




ALTA ENDORSEMENT Form 24-06 (Doing Business)

Purpose: Provides the insured lender with coverage against loss or damage if the Insured Mortgage is invalid or unenforceable because the making of the loan constituted a violation of the doing business laws of the state of Oklahoma.


Loan Policy


Underwriting Requirements: None. Note: Per 18 OKLA. STAT. §1132, a foreign corporation is not considered to be "doing business" in Oklahoma, and therefore not required to domesticate, solely because "it creates, as a borrower or lender, or acquires, evidences of debt, mortgages or liens on real or personal property; or… It secures or collects debts or enforces any rights in property securing the same." SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT Form 24-06 (Doing Business) (10/16/08)

ENDORSEMENT


[FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of the invalidity or unenforceability of the lien of the Insured Mortgage on the ground that making the loan secured by the Insured Mortgage constituted a violation of the "doing business" laws of the State where the Land is located because of the failure of the Insured to qualify to do business under those laws. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory




ALTA ENDORSEMENT Form 25-06 (Same as Survey)

Purpose: Provides coverage against loss or damage if the insured Land is not the same as that identified in a specific survey. This endorsement is used when the entire legal description of the insured Land is identical to the entire legal description on the survey.



Underwriting Requirements: A review of the legal description of the insured Land and a current and acceptable survey verifies that the legal descriptions: 1. Are not ambiguous;

2. They delineate the identical property;

and 3. Are sufficient to convey title under state

law. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 25-06 (Same as Survey)(10/16/08)

ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of the failure of the Land as described in Schedule A to be the same as that identified on the survey made by ____________________ dated _____________________, and designated Job No. _____. 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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory





ALTA ENDORSEMENT Form 25.1-06 (Same as Portion of Survey)

Purpose: Provides coverage against loss or damage if the insured Land is not the same as that identified in a specific survey. This endorsement is used when the legal description in the Policy is one or more parcels on a survey that contains additional parcels besides the ones being insured. This is normally only an issue in a new development where the Company is being asked to rely upon a survey of a larger development to insure less than all of that development.


Loan Policy


Underwriting Requirements: A review of the legal description of the insured Land and a current and acceptable survey verifies that the legal descriptions: 1. Are not ambiguous; 2. They delineate the identical property;

and 3. Are sufficient to convey title under state law. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT 25.1-06 (Same as Portion of Survey)(10/16/08)

ENDORSEMENT


[FNTG Underwriter]

The Company insures against loss or damage sustained by the Insured by reason of the failure of the Land as described in Schedule A to be the same as that identified as [Example: Parcel A, B, C or Parcel 1, 2, 3] on the survey made by ____________________ dated _____________________, and designated Job No. _____.


Dated: ________________ [Title Agent] By: Authorized Signatory





ALTA ENDORSEMENT Form 26-06 (Subdivision)

Purpose: Provides coverage against loss or damage if the insured Land does not constitute one or more lawfully created parcels according to the subdivision laws of the state of Oklahoma and local ordinances.


Loan Policy


Underwriting Requirements: 1. Company must be furnished with an

acceptable written opinion from an attorney approved by the Company, that is directed to the Company and which verifies that the Insured Land has been lawfully subdivided in accordance with the subdivision laws of the state of Oklahoma and local ordinances.

2. This endorsement is extra hazardous and its issuance requires Regional Underwriting approval.

Note: The requirement of an attorney's opinion may be waived by Regional Underwriting on a case-by-case basis depending upon the age of the subdivision map. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 26-06 (Subdivision Endorsement)(10/16/08)

ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of the failure of the Land to constitute a lawfully created parcel according to the subdivision statutes and local subdivision ordinances applicable to the Land. 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. Dated: ________________ [Title Agent] By: Authorized Signatory



Table of Contents Endorsement Forms ALTA ENDORSEMENT Form 27-06 (Usury)

Purpose: Provides the insured lender with coverage against loss or damage if the Insured Mortgage is invalid or unenforceable because the loan evidenced by the note secured thereby is usurious under the laws

of the state of Oklahoma.


Loan Policy


Underwriting Requirements: 1. A review of the loan documents must

verify the loan is governed by and is to be construed under the laws of the state of Oklahoma.

2. The insured loan must be for a business or commercial purpose. For purposes of this endorsement, a business or commercial purpose is one in which the debtor is a business entity (e.g., corporation, partnership, LLC, etc.) and/or the loan is not secured primarily for a personal, family or household purpose.

3. This endorsement is extra hazardous and its issuance requires Regional Underwriting approval. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 27-06 (Usury Endorsement) (10/16/08)



The Company insures against loss or damage sustained by the Insured by reason of the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness because the loan secured by the Insured Mortgage violates the usury law of the state where the Land is located.


Dated: ________________ [Title Agent] By: ____________________________________ Authorized Signatory




ALTA ENDORSEMENT Form 28-06 (Easement-Damage or Enforced Removal)

Purpose: Provides coverage against loss or damage sustained by reason of the encroachment of a building located on the Land onto or over an easement shown as an exception in

Schedule B.


Loan Policy


Underwriting Requirements: Regional Underwriting approval. The basis for providing such coverage may vary by local custom and law. Some of the factors to be considered by the Company are: 1. The type and location of easement

(underground?, Overhead? Common utility? Residential or commercial use?).

2. Age of easement v. age of improvement (which came first?).

3. Size or amount of encroachment (de minimus or substantial? Across small portion or entire width?).

4. Can the easement still be used notwithstanding the encroachment? Are there other access points for maintenance.

5. Cost of moving easement or improvement if the encroachment interferes with the maintenance and use of the easement?.

Note: the endorsement specifically covers only the "building" and not other improvements on the Land. Any request to expand its coverage requires Regional Underwriting approval. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 28-06 (Easement-Damage or Enforced Removal) (Rev.02/03/10)



The Company insures against loss or damage sustained by the Insured if the exercise of the granted or reserved rights to use or maintain the easement(s) referred to in Exception (s) of Schedule B results in: (1) damage to an existing building located on the Land, or (2) enforced removal or alteration of an existing building located on the Land. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT Form 28.1-06 (Encroachments-Boundaries and Easements)

Purpose: Provides coverage against loss or damage sustained by reason of: (i) an encroachment of any improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless expressly excepted to in Schedule B; (ii) an encroachment of any improvement located on adjoining land onto the Land at date of policy, unless expressly excepted to in Schedule B; (iii) enforced removal of any improvement located on the Land as a result of an encroachment by the improvement onto any portion of the Land subject to any easement; and (iv) enforced removal of any improvement located on the Land that encroaches onto adjoining land. For purposes of the endorsement, the term "improvement" means an existing building, located on either the Land or adjoining land at Date of Policy and that my law constitutes real property. Note: this coverage was previously included in the former ALTA Form 9 series of endorsements, but no longer appears within those endorsements other than the revised

ALTA 9-06 and the new ALTA 9.7-06.


Loan Policy


Underwriting Requirements: An inspection and/or review of a current acceptable survey of the Land verifies that unless excepted in Schedule B, there are no encroachments of improvements: (i) On the Land onto adjoining lands; (ii) on adjoining land onto the Land; (iii) onto easements;




ALTA ENDORSEMENT FORM 28.1-06 (Encroachments-Boundaries and Easements) (4/212)

ENDORSEMENT


Issued by

[FNTG Underwriter] 1. The insurance provided by this endorsement is subject to the exclusions in Section 4 of this endorsement;


2. For purposes of this endorsement only, “Improvement” means an existing building, located on either the Land or adjoining land at Date of Policy and that by law constitutes real property.


a. An encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless an exception in Schedule B of the policy identifies the encroachment;

b. An encroachment of any Improvement located on adjoining land onto the Land at Date of Policy, unless an exception in Schedule B of the policy identifies the encroachment;

c. Enforced removal of any Improvement located on the Land as a result of an encroachment by the Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement; or

d. Enforced removal of any Improvement located on the Land that encroaches onto adjoining land.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees, or expenses) resulting from the encroachments listed as Exceptions ______________ of Schedule B.







ALTA ENDORSEMENT Form 28.2-06 (Encroachments-Boundaries and Easements-

Described Improvements)

Purpose: Provides coverage against loss or damage sustained by reason of: (i) an encroachment of any improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless expressly excepted to in Schedule B; (ii) an encroachment of any improvement located on adjoining land onto the Land at Date of Policy, unless expressly excepted to in Schedule B; (iii) enforced removal of any improvement located on the Land as a result of an encroachment by the improvement onto any portion of the Land subject to any easement; and (iv) enforced removal of any improvement located on the Land that encroaches onto adjoining land. For purposes of the endorsement, the term "improvement" means each improvement itemized in provision 2 of the endorsement. Note: This endorsement is used when the encroachment of a specific improvement is meant to be covered and is specifically described in provision 2 of the endorsement. If certain encroachments are not meant to be covered, you should take exception to those encroachments in Schedule B and those exceptions should be identified in provision

4 of the endorsement.


Loan Policy


Underwriting Requirements: Regional Underwriting Approval.




ALTA ENDORSEMENT FORM 28.2-06 (Encroachments-Boundaries and Easements-Described Improvements)) (2/413)

ENDORSEMENT


Issued by



2. For purposes of this endorsement only, “Improvement” means each improvement on the Land or adjoining land at Date of Policy, itemized below:


a. An encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless an exception in Schedule B of the policy identifies the encroachment;

b. An encroachment of any Improvement located on adjoining land onto the Land at Date of Policy, unless an exception in Schedule B of the policy identifies the encroachment;

c. Enforced removal of any Improvement located on the Land as a result of an encroachment by the Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement; or

d. Enforced removal of any Improvement located on the Land that encroaches onto adjoining land.

4. Sections 3.c and 3.d of this endorsement do not insure against loss or damage (and the Company will not pay costs, attorneys’ fees, or expenses) resulting from the following Exceptions, if any, listed in Schedule B:

.






ALTA ENDORSEMENT Form 29-06 (Interest Rate Swap-Direct Obligations)

Purpose: Lenders occasionally request that the Loan Policy insure amounts which are described in an Interest Rate Exchange Agreement or "Swap Agreement", the terms of which are contained in or referenced in the Insured Mortgage. These agreements obligate the mortgagor for damages that an insured lender may suffer under swap transactions entered into on the borrower's behalf in order to achieve a favorable interest rate. If the borrower defaults on its loan, the lender itself becomes obligated under the swap loan for amounts known as "breakage fees". This endorsement provides additional coverage for these breakage fees paid by the insured lender post policy. This endorsement treats the swap obligation amounts as additional principal and requires the insured to include the amount of any breakage fees in the face amount of the mortgage instrument to provide for coverage as to those amounts.


Loan Policy



1. This endorsement is extra hazardous and may not be issued without Regional Underwriting approval. You must provide Regional underwriting with a copy of the Insured Mortgage, the note or other evidence of indebtedness ,and the swap agreement for review.

2. The costs expended by the lender on behalf of the borrower under the swap agreement must be obligatory. The swap agreement must be expressly referenced in the Insured Mortgage. It is not sufficient if the swap agreement is merely referred to in a note, which itself is referred to in the Insured Mortgage.

3. The Insured Mortgage must state that the additional amounts are to be secured by reason of the lender obligations under the swap or interest exchange agreements. Premium must be paid on these amounts.

4. The swap agreement must be in place at the time of execution of the Insured Mortgage.




ALTA ENDORSEMENT FORM 29-06 (Interest Rate Swap-Direct Obligations) (2/3/10)



The insurance provided by this endorsement is subject to the exclusions in Section 3 of this endorsement, the Exclusions from Coverage in the Policy, the Exceptions from Coverage contained in Schedule B, and the Conditions. As used in this endorsement: The “Date of Endorsement” is ____________________________; and ”Swap Obligation” means a monetary obligation under the interest rate exchange agreement dated , between and the Insured existing at Date of Endorsement and secured by the Insured Mortgage. The Swap Obligation is included as a part of the Indebtedness. The Company insures against loss or damage sustained by the Insured by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation at Date of Endorsement. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of: Rights or obligations set, created or confirmed after the Date of Endorsement under a master interest rate exchange agreement existing on or after Date of Endorsement; The stay, rejection or avoidance of the lien of the Insured Mortgage as security for the Swap Obligation, or a court order providing some other remedy, by the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws; The calculation of the amount, if any, determined by a court of competent jurisdiction as the amount of the Swap Obligation; The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for repayment of the Swap Obligation because all applicable mortgage recording or similar intangible taxes were not paid[; or] e. [If Date of Endorsement is after Date of Policy, {add any necessary additional exceptions here}]. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory




ALTA ENDORSEMENT Form 29.1-06 (Interest Rate Swap-Additional Interest)

Purpose: Lenders occasionally request that the Loan Policy insure amounts which are described in an Interest Rate Exchange Agreement or "Swap Agreement", the terms of which are contained in or referenced in the Insured Mortgage. These agreements obligate the mortgagor for damages that an insured lender may suffer under swap transactions entered into on the borrower's behalf in order to achieve a favorable interest rate. If the borrower defaults on its loan, the lender itself becomes obligated under the swap loan for amounts known as "breakage fees". This endorsement provides additional coverage for these breakage fees paid by the insured lender Post policy. This endorsement treats the swap obligation amounts as additional interest.


Loan Policy


Underwriting Requirements: 1. This endorsement is extra hazardous

and may not be issued without Regional Underwriting approval. You must provide Regional underwriting with a copy of the Insured Mortgage, the note or other evidence of indebtedness, and the swap agreement for review.

2. The swap agreement must be expressly referenced in the Insured Mortgage. It is not sufficient if the swap agreement is merely referred to in a note, which itself is referred to in the Insured Mortgage.

3. The Insured Mortgage must state that the additional amounts are to be secured by reason of the lender obligations under the swap or interest exchange agreements. Premium must be paid on these amounts.

1. The swap agreement must be in place at the time of execution of the Insured Mortgage.

2. In states with a mortgage tax, swap enhanced loans may structure the swap obligations as additional interest. In such cases, provisions for treatment of the swap obligations as additional interest must be contained in the note and not merely in the interest rate exchange agreements. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 29.1-06 (Interest Rate Swap-Additional Interest) (2/3/10)

ENDORSEMENT


[FNTG Underwriter] 1. The insurance provided by this endorsement is subject to the exclusions in Section 3 of this endorsement, the Exclusions from Coverage in the Policy, the Exceptions from Coverage contained in Schedule B, and the Conditions. As used in this endorsement: a. The “Date of Endorsement” is ____________________________; and b. ”Swap Obligation” means a monetary obligation under the interest rate exchange agreement dated , between and the Insured existing at Date of Endorsement and secured by the Insured Mortgage. c. “Additional Interest” means the additional interest calculated pursuant to the formula provided in the loan documents secured by the Insured Mortgage at Date of Endorsement for repayment of the Swap Obligation. 2. The Company insures against loss or damage sustained by the Insured by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Additional Interest at Date of Endorsement. 3. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of: a. Rights or obligations set, created or confirmed after the Date of Endorsement under a master interest rate exchange agreement existing on or after Date of Endorsement; b. The avoidance of the lien of the Insured Mortgage as security for the payment of Additional Interest, or a court order providing some other remedy, by the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws; c. The calculation of the amount, if any, determined by a court of competent jurisdiction as the amount of the Additional Interest; or d. The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for repayment of the Swap Obligation because all applicable mortgage recording or similar intangible taxes were not paid [; or] e. [If Date of Endorsement is after Date of Policy, {add any necessary additional exceptions here}].



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. Dated: ________________ [Title Agent] By: __________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 29.1-06 (Interest Rate Swap-Additional Interest) (2/3/10)




ALTA ENDORSEMENT Form 30-06 (Shared Appreciation-One to Four Family)

Purpose: This endorsement is designed to provide additional coverage to the lender when the loan documents provide that the lender will participate in the appreciation in value of the property. It was developed for use with government programs that modified and reduced the outstanding debt of homeowners in the face of the downturn of the housing market. These programs allow the recapture of appreciation up to the amount of forgiveness of previously outstanding debt. This endorsement provides coverage in the event of an attack on the validity, priority or enforceability of the Insured Mortgage based upon the provisions regarding the shared appreciation. The coverage also includes the value of the shared appreciation pursuant to the formula contained in the loan documentation.


Loan Policy


Underwriting Requirements: 3. This endorsement may only be used in

connection with loans on 1-4 family residential properties.

4. The Insured Mortgage must expressly state that it is a Shared Appreciation Mortgage and include the actual formula or calculation method used to determine the lender's share. The formula or calculation method cannot simply be incorporated by reference to the provisions of the note or loan agreement.

5. Consideration must also be given to whether or not the loan is really a loan. Could it be recharacterized as a joint venture arrangement with the borrower? The terms and provisions of the loan documentation must be reviewed for determination as to the nature and extent of control that the lender will have over the operations of the borrower. If these controls are extensive and there is a risk that the loan will be re-characterized, then this endorsement should not be issued. Any such issues must be discussed with Regional Underwriting.




ALTA ENDORSEMENT FORM 30-06 (One to Four Family Shared Appreciation) (7/26/10))

ENDORSEMENT


[FNTG Underwriter] The insurance afforded by this endorsement is only effective if the Land is a one to four family residence.

For the purposes of this endorsement, “Shared Appreciation” shall mean increases in the Indebtedness secured by the Insured Mortgage by reason of shared equity or appreciation in the value of the Land.

The Company insures against loss or damage sustained by the Insured by reason of:

(a) The invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness caused by the provisions for Shared Appreciation; or

(b) Loss of priority of the lien of the Insured Mortgage as security for the Indebtedness caused by the provisions for Shared Appreciation.

Nothing contained in this endorsement shall be construed as insuring against loss or damage sustained or incurred by reason of:

(a) usury;

(b) any consumer credit protection or truth-in-lending law;

(c) costs, expenses or attorneys’ fees required to obtain a determination, by judicial proceedings or otherwise, of the amount of the Shared Appreciation;

(d) failure to comply with applicable laws and regulations regarding Shared Appreciation;

(e) the stay, rejection or avoidance of the lien of the Insured Mortgage as security for the Shared

Appreciation, or a court order providing some other remedy, by the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws; or

(f) the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for

the Indebtedness because all applicable mortgage recording or similar intangible taxes were not paid.





ALTA ENDORSEMENT Form 30.1-06 (Commercial Participation Interest)

Purpose: This endorsement is designed for commercial transactions to provide coverage against loss or damage by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage resulting from provisions in the Insured Mortgage or in the Loan Documents which provide for "Participation Interest". In the endorsement, "Participation Interest" means those elements of interest, established and calculated pursuant to the formula provided in the Loan Documents, that are payable or allocated to the Insured based upon: (i) the borrower's equity in the Title; (ii) the increase in value of the Title; or

(iii) cash flow.


Loan Policy


Underwriting Requirements: 6. This endorsement may only be used in

connection with loans on commercial properties.

7. The Insured Mortgage must expressly state that it is a Shared Appreciation Mortgage and include the actual formula or calculation method used to determine the lender's share. The formula or calculation method cannot simply be incorporated by reference to the provisions of the note or loan agreement.

8. Consideration must also be given to whether or not the loan is really a loan. Could it be recharacterized as a joint venture arrangement with the borrower? The terms and provisions of the loan documentation must be reviewed for determination as to the nature and extent of control that the lender will have over the operations of the borrower. If these controls are extensive and there is a risk that the loan will be re-characterized, then this endorsement should not be issued. Any such issues must be discussed with Regional Underwriting.




ALTA ENDORSEMENT FORM 30.1-06 (Commercial Participation Interest)) (8/1/12))

ENDORSEMENT


[FNTG Underwriter]

[FNTG Brand]

1. This endorsement is subject to the exclusions in Section 4 of this endorsement, the Exclusions from Coverage in the

policy, the Exceptions from Coverage contained in Schedule B, and the Conditions.

2. As used in this endorsement,

a. "Loan Documents" means those documents, as they exist at Date of Policy, creating the Indebtedness.

b. “Participation Interest” means those elements of interest, established and calculated pursuant to the formula provided in the Loan Documents, that are payable or allocated to the Insured based upon:

i. the borrower’s equity in the Title; ii. the increase in value of the Title; or iii. cash flow.

3. The policy insures as of Date of Policy against loss or damage sustained by the Insured by reason of:

a. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions in the Insured

Mortgage or in the Loan Documents which provide for Participation Interest.

b. Lack of priority of the lien of the Insured Mortgage at Date of Policy as security for (i) the unpaid principal balance of the loan and (ii) the interest on the loan, including the Participation Interest, if any, which lack of priority is caused by the provisions in the Loan Documents for payment or allocation to the Insured of any Participation Interest.

4. The policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses

that arise by reason of:

a. usury; unconscionability; or any consumer credit protection or truth-in-lending law; b. disputes over the amount of Participation Interest; c. failure to comply with applicable laws and regulations regarding Participation Interest; d. the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the Participation

Interest because all applicable mortgage recording or similar intangible taxes were not paid; or e. any statutory lien for services provided, labor performed, or materials or equipment furnished arising after Date of

Policy.


Dated:

By_____________________________






ALTA ENDORSEMENT Form 31-06 (Severable Improvements)

Purpose: Severable improvements affixed to the land may not be considered real property in some circumstances because of the nature of attachment to the land and because the improvement can be severed from the land without causing material injury to the land or improvement. These types of improvements are often encountered in commercial projects, such as wind farms and power projects. This endorsement recognizes that if a defect insured against by the policy results in loss, then the calculation of loss will include the diminution in value of the insured's interest in the severable improvements because of the defect and specified cost of removal or relocation and transportation because of the defect.


Loan Policy

Suggested Premium: Determined upon Regional Underwriting Review, taking into consideration the extent to which the value of the severable improvements is included in the Amount of Insurance being purchased.

(min. $150)

Underwriting Requirements: Regional Underwriting approval. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 31-06 (Severable Improvements) (2-3-2011)

ENDORSEMENT


[FNTG Underwriter]

1. As used in this endorsement, "Severable Improvement" means property affixed to the Land on or after Date of Policy that by law does not constitute real property because: a. of its character and manner of attachment to the Land; and b. it can be severed from the Land without causing material damage to it or to the Land.

2. In the event of a loss by reason of a defect, lien, encumbrance, or other matter covered by this Policy

(“Defect”), the calculation of the loss shall include (but not to the extent that these items of loss are included in the valuation of the Title determined pursuant to Section 8 of the Conditions or any other endorsement to the Policy):

a. the diminution in value of the Insured’s interest in any Severable Improvement resulting from the

Defect, reduced by the salvage value of the Severable Improvement; and b. the reasonable cost actually incurred by the Insured in connection with the removal or relocation of

the Severable Improvement resulting from the Defect and the cost of transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the relocation.

3. This endorsement relates solely to the calculation of the Insured’s loss resulting from a claim based on a

defect, lien, encumbrance or other matter otherwise insured against by the Policy. This Policy does not insure against loss or damage (and the Company will not pay any costs, attorneys’ fees or expenses) relating to: a. the attachment, perfection or priority of any security interest in the Severable Improvement;

b. the vesting or ownership of title to or rights in any Severable Improvement; c. any defect in or lien or encumbrance on the title to any Severable Improvement; or d. the determination of whether any specific property is real or personal in nature. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT Form 32-06 (Construction Loan- Loss of Priority)

Purpose: This new ALTA Form 32-06 provides coverage against loss or damage sustained by the Insured by reason of the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance made on or before the Date of Coverage over any mechanic's lien, if notice of the mechanic's lien is not filed or recorded in the public records, but only to the extent that the charges for the services, labor, materials or equipment for which the mechanic's lien is claimed were designated for payment in the documents supporting a Construction Loan Advance disbursed by or on behalf of the Insured. This new endorsement also states that the Date of Coverage (as to mechanics’ liens) may be extended only by a Disbursement Endorsement (the new ALTA Form 33-06). This endorsement is designed to provide the Insured with limited form of mechanics' liens

coverage in the face of broken lien priority.


Loan Policy



2. You must be disbursing construction

funds or reviewing such disbursements. 3. When this endorsement is issued, the

following mechanics' liens exception should appear in Schedule B of the policy::

"Any statutory lien or claim of lien, affecting the Title that arises from services provided, labor performed, or materials or equipment furnished, except as insured by the attached ALTA 32-06 Endorsement is a may be revised by ALTA 33-06 (Disbursement) Endorsements." Note: For a general review of mechanics' liens coverage and the guidelines for providing said coverage see Mechanics' Liens Coverage (Page 272 et seq.) SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 32-06 (Construction Loan – Loss of Priority) (2-3-2011)



1. Covered Risk 11(a) of this policy is deleted. 2. The insurance [for Construction Loan Advances] added by Section 3 of this endorsement is subject to the exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, the provisions of the Conditions, and the exceptions contained in Schedule B. For the purposes of this endorsement and each subsequent Disbursement Endorsement:

a. “Date of Coverage”, is [________________________] [Date of Policy] unless the Company sets a different Date of Coverage by an ALTA 33-06 Disbursement Endorsement issued at the discretion of the Company.

b. “Construction Loan Advance,” shall mean an advance that constitutes Indebtedness made on or before

Date of Coverage for the purpose of financing in whole or in part the construction of improvements on the Land.

c. “Mechanic’s Lien,” shall mean any statutory lien or claim of lien, affecting the Title, that arises from

services provided, labor performed, or materials or equipment furnished. 3. The Company insures against loss or damage sustained by the Insured by reason of:

a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage;

b. The lack of priority of the lien of the Insured Mortgage as security for each Construction Loan Advance

made on or before the Date of Coverage, over any lien or encumbrance on the Title recorded in the Public Records and not shown in Schedule B; and

c. The lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance

made on or before the Date of Coverage over any Mechanic’s Lien, if notice of the Mechanic’s Lien is not filed or recorded in the Public Records, but only to the extent that the charges for the services, labor, materials or equipment for which the Mechanic’s Lien is claimed were designated for payment in the documents supporting a Construction Loan Advance disbursed by or on behalf of the Insured on or before Date of Coverage.

4 This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) by reason of any Mechanic’s Lien arising from services, labor, material or equipment:

a. furnished after Date of Coverage; or b. not designated for payment in the documents supporting a Construction Loan Advance disbursed by or

on behalf of the Insured on or before Date of Coverage.



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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 32-06 (Construction Loan – Loss of Priority) (2-3-2011)





ALTA ENDORSEMENT Form 32.1-06 (Construction Loan-Loss of Priority-Direct

Payment)

Purpose: This new endorsement is similar to the ALTA Form 32-06 endorsement, but it insures against the lack of priority of the lien of the Insured Mortgage "but only to the extent that direct payment to the Mechanic's Lien claimant for the charges for the services, labor, materials or equipment for which the Mechanic's Lien is claimed has been made by the Company or by the Insured with the Company's written approval." As with the Form 32-06 endorsement, this new endorsement also states that the Date of Coverage (as to mechanics’ liens) may be extended only by a Disbursement Endorsement (the new ALTA 33-06). This endorsement is designed to provide the Insured with limited form of mechanics' liens



Loan Policy


Underwriting Requirements: 1. Regional Underwriting approval. 2. The Company must be acting as the

construction disbursing agent.

3. When this endorsement is issued, the following mechanics' liens exception should appear in Schedule B of the policy:

"Any statutory lien or claim of lien, affecting the Title that arises from services provided, labor performed, or materials or equipment furnished, except as insured by the attached ALTA 32.1-06 Endorsement is a may be revised by ALTA 33-06 (Disbursement) Endorsements."

Note: For a general review of mechanics' liens coverage and the guidelines for

providing said coverage see Mechanics' Liens Coverage (Page 272 et seq.)




ALTA ENDORSEMENT FORM 32.1-06 (Construction Loan – Loss of Priority- Direct Payment) (2-3-11)



1. Covered Risk 11(a) of this policy is deleted. 2. The insurance [for Construction Loan Advances] added by Section 3 of this endorsement is subject to the

exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, the provisions of the Conditions, and the exceptions contained in Schedule B. For the purposes of this endorsement and each subsequent Disbursement Endorsement:

a. “Date of Coverage”, is [________________________] [Date of Policy] unless the Company sets a

different Date of Coverage by an ALTA 33-06 Disbursement Endorsement issued at the discretion of the Company.

b. “Construction Loan Advance,” shall mean an advance that constitutes Indebtedness made on or before Date of Coverage for the purpose of financing in whole or in part the construction of improvements on the Land.

c. “Mechanic’s Lien,” shall mean any statutory lien or claim of lien, affecting the Title, that arises from services provided, labor performed, or materials or equipment furnished.


a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage;

b. The lack of priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage, over any lien or encumbrance on the Title recorded in the Public Records and not shown in Schedule B; and

c. The lack of priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage over any Mechanic’s Lien if notice of the Mechanic’s Lien is not filed or recorded in the Public Records, but only to the extent that direct payment to the Mechanic’s Lien claimant for the charges for the services, labor, materials or equipment for which the Mechanic's Lien is claimed has been made by the Company or by the Insured with the Company's written approval.

4. This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or

expenses) by reason of any Mechanic’s Lien arising from services, labor, material or equipment: a. furnished after Date of Coverage; or b. to the extent that the Mechanic’s Lien claimant was not directly paid by the Company or by the Insured

with the Company's written approval.




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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 32.1-06 (Construction Loan – Loss of Priority- Direct Payment) (4-2-13)





ALTA ENDORSEMENT Form 32.2-06 (Construction Loan-Loss of Priority-Insured’s

Direct Payment)

Purpose: This new endorsement is similar to the ALTA Form 32-06 endorsement, but it insures against claims "but only to the extent that direct payment to the Mechanic's Lien claimant for the charges or the services, labor, materials or equipment for which the Mechanic's Lien is claimed has been made by the Insured or on the Insured's behalf." As with the Form 32-06 endorsement, this new endorsement also states that the Date of Coverage (as to mechanics’ liens) may be extended only by a Disbursement Endorsement (the new ALTA 33-06). This endorsement is designed to provide the Insured with limited form of mechanics' liens



Loan Policy



2. When this endorsement is issued, the

following mechanics' liens exception should appear in Schedule B of the policy:

"Any statutory lien or claim of lien, affecting the Title that arises from services provided, labor performed, or materials or equipment furnished, except as insured by the attached ALTA 32.2-06 Endorsement is a may be revised by ALTA 33-06 (Disbursement) Endorsements."






ALTA ENDORSEMENT FORM 32.2-06 (Construction Loan – Loss of Priority- Insured’s Direct Payment) (4-2-13)



1. Covered Risk 11(a) of this policy is deleted.

2. The insurance [for Construction Loan Advances] added by Section 3 of this endorsement is subject to the

exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, the

provisions of the Conditions, and the exceptions contained in Schedule B. For the purposes of this

endorsement and each subsequent Disbursement Endorsement:

a. “Date of Coverage,” is [ ] [Date of Policy] unless the Company sets a different Date

of Coverage by an ALTA 33-06 Disbursement Endorsement issued at the discretion of the Company. b. “Construction Loan Advance,” shall mean an advance that constitutes Indebtedness made on or

before Date of Coverage for the purpose of financing in whole or in part the construction of improvements on the Land.

c. “Mechanic’s Lien,” shall mean any statutory lien or claim of lien, affecting the Title, that arises from

services provided, labor performed, or materials or equipment furnished.


a. The invalidity or unenforceability of the lien of the Insured Mortgage as security for each Construction

Loan Advance made on or before the Date of Coverage; b. The lack of priority of the lien of the Insured Mortgage as security for each Construction Loan Advance

made on or before the Date of Coverage, over any lien or encumbrance on the Title recorded in the Public Records and not shown in Schedule B; and

c. The lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan

Advance made on or before the Date of Coverage over any Mechanic’s Lien, if notice of the Mechanic’s Lien is not filed or recorded in the Public Records, but only to the extent that direct payment to the Mechanic’s Lien claimant for the charges for the services, labor, materials or equipment for which the Mechanic’s Lien is claimed has been made by the Insured or on the Insured’s behalf on or before Date of Coverage.




4. This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) by reason of any Mechanic’s Lien arising from services, labor, materials or equipment:

a. Furnished after Date of Coverage; or

b. To the extent that the Mechanic’s Lien claimant was not directly paid by the Insured or on the

Insured’s behalf. 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.

Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA ENDORSEMENT FORM 32.2-06 (Construction Loan – Loss of Priority- Insured’s Direct Payment) (4-2-13)





ALTA ENDORSEMENT Form 33-06 (Disbursement-Down Date)

Purpose: This new ALTA Form 33-06 endorsement is used in conjunction with the ALTA Form 32-06 and Form 32.1-06 endorsements. This endorsement provides a down date of the "Date of Coverage" of mechanics' liens coverage. It does not otherwise downdate the coverage of the policy or endorsements.


Loan Policy



2. This endorsement may be issued after

the lender verifies what the amount of the current disbursement is, and after the title "down date" has been completed.






six ALTA ENDORSEMENT FORM 33-06

(Construction Loan – Disbursement) (2-3-2011)

ENDORSEMENT


[FNTG Underwriter]

1. The Date of Coverage is amended to _______________________.

[a. The current disbursement is: $ ________________________ ]

[b. The aggregate amount, including the current disbursement, recognized by the Company as disbursed by the Insured is: $______________________]

2. Schedule A is amended as follows: 3. Schedule B is amended as follows:

[Part I]

[Part II] 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT Form 34-06 (Identified Risk Coverage)

Purpose: This new ALTA Form 34-06 endorsement is used to "insure around" or "insure over" an identified title risk/ defect/encumbrance. This coverage is often referred to as "affirmative coverage/insurance". The use of the endorsement clarifies the impact of the coverage on the general marketability coverage afforded by the policy. It also clarifies that although Company requires a final court decree before loss can be determined, it does not relieve

Company of the duty to defend.


Loan Policy

Suggested Premium: Determined upon Regional Underwriting

Review (min. $75 .00)

Underwriting Requirements: 1. The title risk/defect/encumbrance being

"insured over/around" should be shown as an exception in Schedule B of the policy;

2. In paragraph 1 of the endorsement, identify the item in Schedule B where the exception to the title risk/defect/encumbrance appears;


.



ALTA Endorsement Form 34-06 (Identified Risk Coverage) (8-1-11)

ENDORSEMENT Attached to Policy No.______


1. As used in this endorsement “Identified Risk” means: [insert description of the title defect, restriction

encumbrance or other matter] described in Exception ______ of Schedule B.


a. A final order or decree enforcing the Identified Risk in favor of an adverse party; or

b. The release of a prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease, or lend as a result of the Identified Risk, but only if

i. there is a contractual condition requiring the delivery of marketable title, and

ii. neither the Company nor any other title insurance company is willing to insure over the Identified Risk with the same conditions as in this endorsement.

3. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of the Title by reason of the Identified Risk insured against by Paragraph 2 of this endorsement, but only to the extent provided in the Conditions.

4. This endorsement does not obligate the Company to establish the Title free of the Identified Risk or to remove the Identified Risk, but if the Company does establish the Title free of the Identified Risk or removes it, Section 9(a) of the Conditions applies.

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 to it.






INTRODUCTION TO THE ALTA FORM 35 SERIES OF ENDORSEMENTS

In 2012, the American Land Title Association (ALTA) adopted four new forms (35-06, 35.1-06, 35.2-06, and 35.3-06) to provide coverage to lenders with respect to the enforced removal or alteration of improvements resulting from the extraction and/or development of minerals or other subsurface substances. This type of coverage was previously included in the former ALTA Form 9 series of endorsements. This coverage is no longer contained within the ALTA Form 9 series of endorsements other than the revised ALTA 9-06 and the new ALTA 9.7-06. For more information about the 2012 revisions to the ALTA Form 9 series of endorsements, see INTRODUCTION TO ALTA FORM 9 SERIES OF ENDORSEMENTS. As this type of coverage is prohibited in Oklahoma, the new ALTA Form 35 series of endorsements are not available in Oklahoma.




ALTA ENDORSEMENT Form 36-06 (Energy Project-Leasehold/Easement-Owners)

Purpose: The ALTA Form 36 series of endorsements were developed to provide coverages to energy project owners and lenders which use a leasehold or easement rights structure. Examples of such projects would include solar or wind farms. This endorsement provides coverage to an owner of an energy project which uses a leasehold and easement rights structure. If an easement rights structure only is utilized in your transaction, contact regional Underwriting. This endorsement is similar to the ALTA Form 13-06 (Leasehold- Owner's). It modifies the provisions in the policy concerning the valuation of the estate or interest insured, and miscellaneous items of loss that are affected by the particularities of an energy project.



Review (min. $150.00)

Underwriting Requirements: Regional Underwriting approval. Note that in provision 2j of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE

.



ALTA ENDORSEMENT FORM 36-06 (Energy Project-Lease oh/Easement-Owners) (4/2/12)

ENDORSEMENT Attached to Policy No._____________


1. The insurance provided by this endorsement is subject to the exclusions in Section 6 of this endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


a. “Constituent Parcel” means one of the parcels of Land described in Schedule A that together constitute one integrated project.

b. “Easement” means each easement described in Schedule A.

c. “Easement Interest” means the right of use granted in the Easement for the Easement Term.

d. “Easement Term” means the duration of the Easement Interest, as set forth in the Easement, including any renewal or extended term if a valid option to renew or extend is contained in the Easement.

e. “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

f. “Evicted” or “Eviction” means (a) the lawful deprivation, in whole or in part, of the right of possession or use insured by this policy, contrary to the terms of any Lease or Easement or (b) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement for the purposes permitted by the Lease or the Easement, as applicable, in either case as a result of a matter covered by this policy.

g. “Lease” means each lease described in Schedule A.

h. “Leasehold Estate” means the right of possession granted in the Lease for the Lease Term.

i. “Lease Term” means the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.

j. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

k. “Remaining Term” means the portion of the Easement Term or the Lease Term remaining after the Insured has been Evicted.

l. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.

Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA

licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under

license from the American Land Title Association

3. Valuation of Title as an Integrated Project:


a. If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction, then, as to that portion of the Land from which the Insured is Evicted, that value shall consist of (i) the value of (A) the Leasehold Estate or the Easement Interest for the Remaining Term, as applicable, (B) any Electricity Facility existing on the date of the Eviction, and, if applicable, (ii) any reduction in value of another insured Lease or Easement as computed in Section 3(b) below.

b. A computation of loss or damage resulting from an Eviction affecting any Constituent Parcel shall include loss or damage to the integrated project caused by the covered matter affecting the Constituent Parcel from which the Insured is Evicted.

c. The Insured Claimant shall have the right to have the Leasehold Estate, the Easement Interest, and any Electricity Facility affected by a defect insured against by this policy valued either as a whole or separately. In either event, this determination of value shall take into account any rent or use payments no longer required to be paid for the Remaining Term.

d. The provisions of this Section 3 shall not diminish the Insured’s rights under any other endorsement to the policy; however, the calculation of loss or damage pursuant to this endorsement shall not allow duplication of recovery for loss or damage calculated pursuant to Section 8 of the Conditions or any other endorsement to the policy.

4. Valuation of Severable Improvements:

a. In the event of an Eviction, the calculation of the loss shall include (but not to the extent that these items of loss are included in the valuation of the Title determined pursuant to Section 8 of the Conditions or any other provision of this or any other endorsement) the diminution in value of the Insured’s interest in any Severable Improvement resulting from the Eviction, reduced by the salvage value of the Severable Improvement.

b. The policy does not insure against loss or damage (and the Company will not pay any costs, attorneys’ fees or expenses) relating to:

i. the attachment, perfection or priority of any security interest in any Severable Improvement;

ii. the vesting or ownership of title to or rights in any Severable Improvement;

iii. any defect in or lien or encumbrance on the title to any Severable Improvement; or

iv. the determination of whether any specific property is real or personal in nature.

5. Additional items of loss covered by this endorsement:

If the Insured is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted, shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(ii) of the Conditions. a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable

Improvement that the Insured has the right to remove and relocate, situated on the Land at the time of Eviction, to the extent necessary to restore and make functional the integrated project; (ii) transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the restoration or relocation; and (iii) restoring the Land to the extent damaged as a result of the disassembly, removal and relocation of the Severable Improvement and required of the Insured solely because of the Eviction.






b. Rent, easement payments or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the Leasehold Estate or the Easement Interest, as applicable, may be obligated to pay to any person having paramount title to that of the lessor in the Lease or the grantor in the Easement, as applicable.

c. The amount of rent, easement payments or damages that, by the terms of the Lease or the Easement, as applicable, the Insured must continue to pay to the lessor or grantor after Eviction with respect to the portion of the Leasehold Estate or Easement Interest, as applicable, from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease, sublease or easement specifically permitted by the Lease or Easement, as applicable, and made by the Insured as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees or easement or subeasement grantees on account of the breach of any lease or sublease or easement or subeasement specifically permitted by the Lease or the Easement, as applicable, and made by the Insured as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate or a replacement easement reasonably equivalent to the Easement Interest, as applicable.

g. If any Electricity Facility is not substantially completed at the time of Eviction, the actual cost incurred by the Insured up to the time of Eviction, less the salvage value, for the Electricity Facility located on that portion of the Land from which the Insured is Evicted. Those costs include costs incurred to construct and fabricate the Electricity Facility, obtain land use, zoning, building and occupancy permits, architectural and engineering services, construction management services, environmental testing and reviews, and landscaping, and cancellation fees related to the foregoing.

6. This endorsement does not insure against loss, damage or costs of remediation (and the Company will not pay costs, attorneys' fees, or expenses) resulting from environmental damage or contamination.







ALTA ENDORSEMENT Form 36.1-06 (Energy Project-Leasehold/Easement-Loan)

Purpose: The ALTA Form 36 series of endorsements were developed to provide coverages to energy project owners and lenders which use a leasehold or easement rights structure. Examples of such projects would include solar or wind farms. This endorsement provides coverage to a lender on an energy project which uses a leasehold and easement rights structure. If an easement rights structure only is utilized in your transaction, contact Regional Underwriting. This endorsement is similar to the ALTA Form 13.1-06 (Leasehold- Loan). It modifies provisions in the policy concerning the valuation of the estate or interest insured, and miscellaneous items of loss affected by the particularities of an energy project


Loan Policy



Underwriting Requirements: Regional Underwriting approval. Note that in provision 2j of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA Endorsement Form 36.1-06 (Energy Project –Leasehold/Easement-Loan) (4/2/12)

ENDORSEMENT


Issued by

[FNTG BRAND]




b. “Easement” means each easement described in Schedule A.

c. “Easement Interest” means the right of use granted in the Easement for the Easement Term.

d. “Easement Term” means the duration of the Easement Interest, as set forth in the Easement, including any renewal or extended term if a valid option to renew or extend is contained in the Easement.

e. “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

f. “Evicted” or “Eviction” means (a) the lawful deprivation, in whole or in part, of the right of possession or use insured by this policy, contrary to the terms of any Lease or Easement or (b) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement for the purposes permitted by the Lease or the Easement, as applicable, in either case as a result of a matter covered by this policy.

g. “Lease” means each lease described in Schedule A.

h. “Leasehold Estate” means the right of possession granted in the Lease for the Lease Term.

i. “Lease Term” means the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.

j. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

k. “Remaining Term” means the portion of the Easement Term or the Lease Term remaining after the Insured has been Evicted.




l. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.

m. “Tenant” means the tenant under the Lease or a grantee under the Easement, as applicable, and, after acquisition of all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy, the Insured Claimant.


a. If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction, then, as to that portion of the Land from which the Tenant is Evicted, that value shall consist of (i) the value of (A) the Leasehold Estate or the Easement Interest for the Remaining Term, as applicable, (B) any Electricity Facility existing on the date of the Eviction, and, if applicable, (ii) any reduction in value of another insured Lease or Easement as computed in Section 3(b) below.


c. The Insured Claimant shall have the right to have the Leasehold Estate, the Easement Interest, and any Electricity Facility affected by a defect insured against by the policy valued either as a whole or separately. In either event, this determination of value shall take into account any rent or use payments no longer required to be paid for the Remaining Term.








iii.the determination of whether any specific property is real or personal in nature.






If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy and thereafter is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(iii) of the Conditions: a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable


b. Rent, easement payments or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the Leasehold Estate or the Easement Interest, as applicable, may be obligated to pay to any person having paramount title to that of the lessor in the Lease or the grantor in the Easement, as applicable.

c. The amount of rent, easement payments or damages that, by the terms of the Lease or the Easement, as applicable, the Insured must continue to pay to the lessor or grantor after Eviction with respect to the portion of the Leasehold Estate or Easement Interest, as applicable, from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease, sublease or easement specifically permitted by the Lease or Easement, as applicable, and made by the Tenant as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees or easement or subeasement grantees on account of the breach of any lease or sublease or easement or subeasement specifically permitted by the Lease or the Easement, as applicable, and made by the Tenant as lessor or grantor of all or part of the Leasehold Estate or Easement Interest, as applicable.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate or a replacement easement reasonably equivalent to the Easement Interest, as applicable.














ALTA ENDORSEMENT Form 36.2-06 (Energy Project-Leasehold-Owner's)

Purpose: The ALTA Form 36 series of endorsements were developed to provide coverages to energy project owners and lenders which use a leasehold or easement rights structure. Examples of such projects would include solar or wind farms. This endorsement provides coverage to an owner wind energy project which uses only a leasehold rights structure. This endorsement is similar to the ALTA Form 13-06 (Leasehold- Owner's). It modifies the provisions in the policy concerning the valuation of the estate or interest insured, and miscellaneous items of loss that are affected by the particularities of an energy project.




Underwriting Requirements: Regional Underwriting approval. Note that in provision 2g of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE

.



ALTA Endorsement Form 36.2-06 (Energy Project –Leasehold-Owners) (4/2/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]




b. “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

c. “Evicted” or “Eviction” means (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of any Lease or (b) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement for the purposes permitted by the Lease, in either case as a result of a matter covered by this policy.

d. “Lease” means each lease described in Schedule A.

e. “Leasehold Estate” means the right of possession granted in the Lease for the Lease Term.

f. “Lease Term” means the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.

g. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

h. “Remaining Term” means the portion of the Lease Term remaining after the Insured has been Evicted.

i. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.




a. If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction, then, as to that portion of the Land from which the Insured is Evicted, that value shall consist of (i) the value of (A) the Leasehold Estate for the Remaining Term, (B) any Electricity Facility existing on the date of the Eviction, and, if applicable, (ii) any reduction in value of another insured Lease as computed in Section 3(b) below.


c. The Insured Claimant shall have the right to have the Leasehold Estate and any Electricity Facility affected by a defect insured against by this policy valued either as a whole or separately. In either event, this determination of value shall take into account any rent no longer required to be paid for the Remaining Term.








iv. the determination of whether any specific property is real or personal in nature.


If the Insured is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(ii) of the Conditions. a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable






b. Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the Leasehold Estate may be obligated to pay to any person having paramount title to that of the lessor in the Lease.

c. The amount of rent or damages that, by the terms of the Lease , the Insured must continue to pay to the lessor after Eviction with respect to the portion of the Leasehold Estate from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or sublease specifically permitted by the Lease and made by the Insured as lessor of all or part of the Leasehold Estate.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees on account of the breach of any lease or sublease specifically permitted by the Lease and made by the Insured as lessor of all or part of the Leasehold Estate.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate.




ALTA Endorsement Form 36.2-06 (Energy Project –Leasehold-Owners) (4/2/12)





ALTA ENDORSEMENT Form 36.3-06 (Energy Project-Leasehold-Loan))

Purpose: The ALTA Form 36 series of endorsements were developed to provide coverages to energy project owners and lenders which use a leasehold or easement rights structure. Examples of such projects would include solar or wind farms. This endorsement provides s coverage to a lender on a wind energy project which uses only a leasehold rights structure. This endorsement is similar to the ALTA Form 13-06 (Leasehold- Owner's). It modifies the provisions in the policy concerning the valuation of the estate or interest insured, and miscellaneous items of loss that are affected by the particularities of an energy project.


Loan Policy



Underwriting Requirements: Regional Underwriting approval. Note that in provision 2g of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA Endorsement Form 36.3-06 (Energy Project –Leasehold-Loan) (4/2/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]




b. “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

c. “Evicted” or “Eviction” means (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of any Lease or (b) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement for the purposes permitted by the Lease, in either case as a result of a matter covered by this policy.

d. “Lease” means each lease described in Schedule A.

e. “Leasehold Estate” means the right of possession granted in the Lease for the Lease Term.

f. “Lease Term” means the duration of the Leasehold Estate, as set forth in the Lease, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.

g. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

h. “Remaining Term” means the portion of the Lease Term remaining after the Insured has been Evicted.

i. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.

j. “Tenant” means the tenant under the Lease and, after acquisition of all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy, the Insured Claimant.





a. If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Eviction, then, as to that portion of the Land from which the Tenant is Evicted, that value shall consist of (i) the value of (A) the Leasehold Estate for the Remaining Term, (B) any Electricity Facility existing on the date of the Eviction, and, if applicable, (ii) any reduction in value of another insured Lease as computed in Section 3(b) below.


c. The Insured Claimant shall have the right to have the Leasehold Estate and any Electricity Facility affected by a defect insured against by the policy valued either as a whole or separately. In either event, this determination of value shall take into account any rent no longer required to be paid for the Remaining Term.





i. the attachment, perfection or priority of any security interest in any Severable Improvement; ii. the vesting or ownership of title to or rights in any Severable Improvement; iii. any defect in or lien or encumbrance on the title to any Severable Improvement; or iv. the determination of whether any specific property is real or personal in nature.

5. Additional items of loss covered by this endorsement: If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy and thereafter is Evicted, the following items of loss, if applicable to that portion of the Land from which the Insured is Evicted shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(iii) of the Conditions: a. The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable






b. Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the Leasehold Estate may be obligated to pay to any person having paramount title to that of the lessor in the Lease.

c. The amount of rent or damages that, by the terms of the Lease , the Insured must continue to pay to the lessor after Eviction with respect to the portion of the Leasehold Estate from which the Insured has been Evicted.

d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or sublease specifically permitted by the Lease and made by the Tenant as lessor of all or part of the Leasehold Estate.

e. Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees on account of the breach of any lease or sublease specifically permitted by the Lease and made by the Tenant as lessor of all or part of the Leasehold Estate.

f. The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services and environmental testing and reviews for a replacement leasehold reasonably equivalent to the Leasehold Estate.









ALTA ENDORSEMENT Form 36.4-06 (Energy Project-Covenants, Conditions and

Restrictions-Land Under Development-Owners))

Purpose: This endorsement provides coverage to an owner on a energy project which is under development, with respect to covenants, conditions and restrictions. This endorsement is similar to the ALTA 9.8-06 Endorsehold (Covenants, Conditions and the Restrictions-Land Under Development-

Owners).




Underwriting Requirements: Regional Underwriting approval. Note that in provision 2c of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA Endorsement Form 36.4-06 (Energy Project –Covenants, Conditions and Restrictions-Land Under Development-Owners)

ENDORSEMENT


Issued by

[FNTG Underwriter]


2. For purposes of this endorsement only: a. “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in effect at

Date of Policy.

b. “Electricity Facility” means an electricity generating facility that may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

c. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________, designated as (insert name of project or project number) consisting of ___sheets.

d. “Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to the Land in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.

3. The Company insures against loss or damage sustained by the Insured by reason of: a. A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement, unless an

exception in Schedule B of the policy identifies the violation;

b. Enforced removal of any Electricity Facility or Severable Improvement as a result of a violation of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or

c. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection, describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.




a. any Covenant contained in an instrument creating a lease or easement;


c. except as provided in Section 3.c., any Covenant pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA Endorsement Form 36.4-06 (Energy Project –Covenants, Conditions and Restrictions-Land Under Development-Owners) (4/2/12)





ALTA ENDORSEMENT Form 36.5-06 (Energy Project-Covenants Conditions and

Restrictions-Land Under Development-Loan))

Purpose: This endorsement provides coverage to a lender on a energy project which is under development, with respect to covenants, conditions and restrictions. This endorsement is similar to the ALTA 9.7-06 Endorsement (Covenants, Conditions and the Restrictions-Land Under Development-Loan).


Loan Policy



Underwriting Requirements: Regional Underwriting approval. Note that in provision 2c of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA Endorsement Form 36.5-06 (Energy Project –Covenants, Conditions and Restrictions-Land Under Development-Loan) (4/2/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]




b. “Electricity Facility” means an electricity generating facility that may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

c. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

d. ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to the Land in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.


a. A violation of a Covenant that:

i. divests, subordinates, or extinguishes the lien of the Insured Mortgage;

ii. results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; or

iii. causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness.




b. A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement, unless an exception in Schedule B of the policy identifies the violation;

c. Enforced removal of any Electricity Facility or Severable Improvement, as a result of a violation of a building setback line shown on a plat of subdivision recorded or filed in the Public Records, unless an exception in Schedule B of the policy identifies the violation; or

d. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection, describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless an exception in Schedule B of the policy identifies the notice of the violation.


a. any Covenant contained in an instrument creating a lease or easement;


c. except as provided in Section 3.d., any Covenant pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances.

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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory ALTA Endorsement Form 36.5-06 (Energy Project –Covenants, Conditions and Restrictions-Land Under Development-Loan) (4/2/12)





ALTA ENDORSEMENT FORM 36.6-06 (Energy Project-Encroachments)

Purpose: This endorsement provides coverage to an owner or lender on a energy project, with respect to boundary line and easement encroachments. This endorsement is similar to the ALTA 28.1-06 (Encroachments-Boundaries and Easements).


Loan Policy



Underwriting Requirements: Regional Underwriting approval. Note that in provision 2b of the endorsement, you should identify the survey of the project. Note that provision 3e is optional, and would only be utilized in the event that certain encroachments are not intended to be covered by the endorsement. Said encroachments would be identified in provision 3e. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA Endorsement Form 36.6-06 (Energy Project –Encroachments) (4/2/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]




a. “Electricity Facility” means an electricity generating facility that may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

b. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated ____, last revised ________ ,designated as (insert name of project or project number) consisting of ___sheets.

c. “Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed to the Land in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (a) of its character and manner of attachment to the Land and (b) the property can be severed from the Land without causing material damage to the property or to the Land.


a. An encroachment of any Electricity Facility or Severable Improvement located on the Land onto adjoining

land or onto that portion of the Land subject to an easement, unless an exception in Schedule B of the policy identifies the encroachment;

b. An encroachment of an improvement located on adjoining land onto the Land at Date of Policy, unless an

exception in Schedule B of the policy identifies the encroachment; c. Enforced removal of any Electricity Facility or Severable Improvement, as a result of an encroachment by the

Electricity Facility or Severable Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Electricity Facility or Severable Improvement; [or]




d. Damage to any Electricity Facility or Severable Improvement that is located on or encroaches onto that portion of the Land subject to an easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which it was granted or reserved [; or]

[e. The coverage of Sections 3.c. and 3.d. shall not apply to the encroachments listed in Exception(s)

______________ of Schedule B]. 4 This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys’

fees, or expenses) resulting from contamination, explosion, fire, vibration, fracturing, earthquake or subsidence.


ALTA Endorsement Form 36.6-06 (Energy Project –Encroachments) (4/2/12




ALTA ENDORSEMENT FORM 36.7-06 (Energy Project-Fee- Owners)

Purpose: Provides coverage to an owner on an energy project which uses a fee ownership of the land or structure. The loss may be triggered by "ejectment" from the Land (presumably as a trespasser). The endorsement: (i) adds specific energy project definitions; (ii) expands the "Evaluation of Title" to clarify that loss in a single parcel shall include resulting loss to the integrated project as a whole; (iii) adds coverage for "severable improvements" which is separately available with the ALTA 31-06; (iv) modifies the "additional items of loss" section to include items appropriate to the energy project transaction; and (v) as a limitation that the coverage does not include loss resulting from environmental damage or contamination, to conform to policy

provisions.

Policy To Be Endorsed: Owner Policy


Review (min. $75.00)

Underwriting Requirements: 1. Regional Underwriting approval;

2. All underwriting guidelines for the

search, examination and insurance of fee interest must be followed.

Note that in provision 2 (d) of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 36.7-06 (Energy Project-Fee- Owner) (12/1/14)

ENDORSEMENT

Attached to Policy No.______________

Issued by

[FNTG Underwriter]

1. The insurance provided by this endorsement is (a) only effective for the parcel or those parcels of the Land as to which the Title is fee simple and (b) subject to the exclusions in Section 6 of this endorsement and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


(a) “Constituent Parcel” means one of the parcels of Land described in Schedule A that together with any other parcel or parcels of Land described in Schedule A constitute one integrated project.

(b) “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance, and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale, or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

(c) “Ejected” or “Ejection” means (i) the lawful divestment, in whole or in part, of the Title to the Land or (ii) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement, as applicable, in either case as a result of a matter covered by this policy.

(d) “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by dated , last revised ,designated as , consisting of sheets.

(e) ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (i) of its character and manner of attachment to the Land and (ii) the property can be severed from the Land without causing material damage to the property or to the Land.

3. Valuation of Title as an integrated project:

(a) If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Ejection, then, as to that portion of the Land from which the Insured is Ejected, that value shall consist of (i) the value of the fee estate including any Electricity Facility existing on the date of the Ejection, and, if applicable, (ii) any reduction in value of another insured Constituent Parcel as computed in Section 3(b) below.

(b) A computation of loss or damage resulting from an Ejection affecting any Constituent Parcel shall include loss or damage to the integrated project caused by the covered matter affecting the Constituent Parcel from which the Insured is Ejected.

(c) The Insured Claimant shall have the right to have the fee estate, any Constituent Parcel, and any Electricity Facility affected by a defect insured against by this policy valued either as a whole or separately.





(d) The provisions of this Section 3 shall not diminish the Insured’s rights under any other endorsement to the policy; however, the calculation of loss or damage pursuant to this endorsement shall not allow duplication of recovery for loss or damage calculated pursuant to Section 8 of the Conditions or any other endorsement to the policy.


(a) In the event of an Ejection, the calculation of the loss shall include (but not to the extent that these items of loss are included in the valuation of the Title determined pursuant to Section 8 of the Conditions or any other provision of this or any other endorsement) the diminution in value of the Insured’s interest in any Severable Improvement resulting from the Ejection, reduced by the salvage value of the Severable Improvement.

(b) The policy does not insure against loss or damage (and the Company will not pay any costs, attorneys’ fees, or expenses) relating to: (i) the attachment, perfection, or priority of any security interest in any Severable Improvement; (ii) the vesting or ownership of title to or rights in any Severable Improvement; (iii) any defect in or lien or encumbrance on the title to any Severable Improvement; or (iv) the determination of whether any specific property is real or personal in nature.


If the Insured is Ejected, the following items of loss, if applicable to that portion of the Land from which the Insured is Ejected, shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(ii) of the Conditions.

(a) The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable Improvement that the Insured has the right to remove and relocate, situated on the Land at the time of Ejection, to the extent necessary to restore and make functional the integrated project; (ii) transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the restoration or relocation; and (iii) restoring the Land to the extent damaged as a result of the disassembly, removal and relocation of the Severable Improvement and required of the Insured solely because of the Ejection.

(b) Payments or damages for use and occupancy of the Land prior to the Ejection that the Insured may be obligated to pay to any person having paramount title to that of the Insured.

(c) The fair market value, at the time of the Ejection, of the estate or interest of the Insured in any lease or easement, as applicable, made by the Insured as lessor or grantor of all or part of the Title.

(d) Damages caused by the Ejection that the Insured is obligated to pay to lessees or easement grantees on account of the breach of any lease or easement, as applicable, made by the Insured as lessor or grantor of all or part of the Title.

(e) The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services, and environmental testing and reviews for a fee estate in a replacement parcel of land reasonably equivalent to the parcel that is the subject of the Ejection.

(f) If any Electricity Facility is not substantially completed at the time of Ejection, the actual cost incurred by the Insured up to the time of Ejection, less the salvage value, for the Electricity Facility located on that portion of the Land from which the Insured is Ejected. Those costs include costs incurred to construct and fabricate the Electricity Facility, obtain land use, zoning, building and occupancy permits, architectural and engineering services, construction management services, environmental testing and reviews, landscaping, and cancellation fees related to the foregoing.

ALTA ENDORSEMENT FORM 36.7-06 (Energy Project-Fee Owner) (12/1/14)





6. This endorsement does not insure against loss, damage, or costs of remediation (and the Company will not pay costs, attorneys' fees, or expenses) resulting from environmental damage or contamination.


Dated:

By: ___________________________________


ALTA ENDORSEMENT FORM 36.7-06 (Energy Project-Fee Owner) (12/1/14)






ALTA ENDORSEMENT FORM 36.8-06 (Energy Project-Loan)

Purpose: Provides coverage to a lender on an energy project which uses a fee ownership of the land or structure. The loss may be triggered by "ejectment" from the Land (presumably as a trespasser). The endorsement: (i) adds specific energy project definitions; (ii) expands the "Evaluation of Title" to clarify that loss in a single parcel shall include resulting loss to the integrated project as a whole; (iii) adds coverage for "severable improvements" which is separately available with the ALTA 31-06; (iv) modifies the "additional items of loss" section to include items appropriate to the energy project transaction; and (v) as a limitation that the coverage does not include loss resulting from environmental damage or contamination, to conform to policy provisions.


Suggested Premium: Determined upon Regional Underwriting Review (min. $75.00)


2. All underwriting guidelines for the

search, examination and insurance of fee interest must be followed.

Note that in provision 2 (d) of the endorsement, you should identify the survey of the project. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 36.8-06 (Energy Project-Fee- Loan) (12/1/14)


Issued by CHICAGO TITLE INSURANCE COMPANY

1. The insurance provided by this endorsement is (a) only effective for the parcel or those parcels of the Land as to which the Title is fee simple and (b) subject to the exclusions in Section 6 of this endorsement and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


(a) “Constituent Parcel” means one of the parcels of Land described in Schedule A that together with any other parcel or parcels of Land described in Schedule A constitute one integrated project.

(b) “Electricity Facility” means an electricity generating facility which may include one or more of the following: a substation; a transmission, distribution or collector line; an interconnection, inverter, transformer, generator, turbine, array, solar panel, or module; a circuit breaker, footing, tower, pole, cross-arm, guy line, anchor, wire, control system, communications or radio relay system, safety protection facility, road, and other building, structure, fixture, machinery, equipment, appliance, and item associated with or incidental to the generation, conversion, storage, switching, metering, step-up, step-down, inversion, transmission, conducting, wheeling, sale, or other use or conveyance of electricity, on the Land at Date of Policy or to be built or constructed on the Land in the locations according to the Plans, that by law constitutes real property.

(c) “Ejected” or “Ejection” means (i) the lawful divestment, in whole or in part, of the Title to the Land or (ii) the lawful prevention of the use of the Land or any Electricity Facility or Severable Improvement, as applicable, in either case as a result of a matter covered by this policy.

(d) “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by (insert name of architect or engineer) dated __________, last revised __________, designated as (insert name of project or project number) consisting of ____ sheets.

(e) ”Severable Improvement” means property affixed to the Land at Date of Policy or to be affixed in the locations according to the Plans, that would constitute an Electricity Facility but for its characterization as personal property, and that by law does not constitute real property because (i) of its character and manner of attachment to the Land and (ii) the property can be severed from the Land without causing material damage to the property or to the Land.

(f) “Vestee” means the party in which the Title is vested as stated in Schedule A and, after acquisition of all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy, the Insured Claimant.

3. Valuation of Title as an integrated project:

(a) If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of an Ejection, then, as to that portion of the Land from which the Vestee is Ejected, that value shall consist of (i) the value of the fee estate including any Electricity Facility existing on the date of the Ejection, and, if applicable, (ii) any reduction in value of another insured Constituent Parcel as computed in Section 3(b) below.

(b) A computation of loss or damage resulting from an Ejection affecting any Constituent Parcel shall include loss or damage to the integrated project caused by the covered matter affecting the Constituent Parcel from which the Insured is Ejected.

(c) The Insured Claimant shall have the right to have the fee estate, any Constituent Parcel, and any Electricity Facility affected by a defect insured against by this policy valued either as a whole or separately.





(d) The provisions of this Section 3 shall not diminish the Insured’s rights under any other endorsement to the policy; however, the calculation of loss or damage pursuant to this endorsement shall not allow duplication of recovery for loss or damage calculated pursuant to Section 8 of the Conditions or any other endorsement to the policy.


(a) In the event of an Ejection, the calculation of the loss shall include (but not to the extent that these items of loss are included in the valuation of the Title determined pursuant to Section 8 of the Conditions or any other provision of this or any other endorsement) the diminution in value of the Insured’s interest in any Severable Improvement resulting from the Ejection, reduced by the salvage value of the Severable Improvement.

(b) The policy does not insure against loss or damage (and the Company will not pay any costs, attorneys’ fees, or expenses) relating to: (i) the attachment, perfection, or priority of any security interest in any Severable Improvement; (ii) the vesting or ownership of title to or rights in any Severable Improvement; (iii) any defect in or lien or encumbrance on the title to any Severable Improvement; or (iv) the determination of whether any specific property is real or personal in nature.


If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the Conditions of the policy and thereafter is Ejected, the following items of loss, if applicable to that portion of the Land from which the Insured is Ejected, shall be included, without duplication, in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the valuation of the Title determined pursuant to Section 3 of this endorsement, the valuation of Severable Improvements pursuant to Section 4 of this endorsement, or Section 8(a)(iii) of the Conditions:

(a) The reasonable cost of: (i) disassembling, removing, relocating and reassembling any Severable Improvement that the Insured has the right to remove and relocate, situated on the Land at the time of Ejection, to the extent necessary to restore and make functional the integrated project; (ii) transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the restoration or relocation; and (iii) restoring the Land to the extent damaged as a result of the disassembly, removal and relocation of the Severable Improvement and required of the Insured solely because of the Ejection.

(b) Payments or damages for use and occupancy of the Land prior to the Ejection that the Insured may be obligated to pay to any person having paramount title to that of the Insured.

(c) The fair market value, at the time of the Ejection, of the estate or interest of the Insured in any lease or easement, as applicable, made by the Vestee as lessor or grantor of all or part of the Title.

(d) Damages caused by the Ejection that the Insured is obligated to pay to lessees or easement grantees on account of the breach of any lease or easement, as applicable, made by the Vestee as lessor or grantor of all or part of the Title.

(e) The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and engineering services, and environmental testing and reviews for a fee estate in a replacement parcel of land reasonably equivalent to the parcel that is the subject of the Ejection.

ALTA ENDORSEMENT FORM 36.8-06 (Energy Project-Fee Loan) (12/1/14)





(f) If any Electricity Facility is not substantially completed at the time of Ejection, the actual cost incurred by the Insured up to the time of Ejection, less the salvage value, for the Electricity Facility located on that portion of the Land from which the Insured is Ejected. Those costs include costs incurred to construct and fabricate the Electricity Facility, obtain land use, zoning, building and occupancy permits, architectural and engineering services, construction management services, environmental testing and reviews, landscaping, and cancellation fees related to the foregoing.

6. This endorsement does not insure against loss, damage, or costs of remediation (and the Company will not pay costs, attorneys' fees, or expenses) resulting from environmental damage or contamination.


Dated: ]

By: ___________________________________


ALTA ENDORSEMENT FORM 36.8-06 (Energy Project-Fee Loan) (12/1/14)






ALTA ENDORSEMENT FORM 37-06 (Assignment of Rents or Leases)

Purpose: Lenders occasionally request that the Loan Policy insure certain recorded interests that are taken as additional security for the loan primarily secured by the Insured Mortgage. The most common additional security, other than a security interest under the Uniform Commercial Code, is an assignment of rents or leases. This endorsement is to be issued to provide certain coverages with respect to a separate assignment of rents or leases. This endorsement provides insurance that the assignment of rents or leases is properly executed and that the Public Records do not disclose any prior assignments of the same rents or leases.


Loan Policy


Underwriting Requirements: 1. A review of the Assignment of Rents or

Leases instrument executed in connection with the insured transaction verifies that: a. The assignment of rents or leases

has been properly executed and filed of record, and the assignee shown in the assignment of rents or leases is the insured lender;

b. The title search does not reveal any prior assignments of rents or leases other than those set forth in Schedule B.

2. The real property records and prior mortgages must be examined to determine if they contain prior assignments of rents or leases. Separate Schedule B exceptions should be made to such prior assignments.

3. The Assignment of Rents or Leases instrument must be shown as an exception in Schedule B of the policy, and identified in paragraph 2a of the endorsement.


.



ALTA Endorsement Form 37-06 (Assignment of Rents or Leases ) (4/2/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]

1. The insurance provided by this endorsement is subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


a. any defect in the execution of the [Insert Title of Assignment of Rents or Leases Document] referred to in paragraph ____ [of Part II] of Schedule B; or

b. any assignment of the lessor's interest in any lease or leases or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument referred to in Schedule B.






ALTA ENDORSEMENT FORM 38-06 (Mortgage Tax)

Purpose: This endorsement provides the insured lender with coverage against loss or damage by reason of: (i) the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or (ii) the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at time of recording, any portion of the

Mortgage Tax.


Loan Policy


Underwriting Requirements: 1. You must collect and pay the required

mortgage tax due in connection with the recording of the Insured Mortgage in accordance with 68 OKLA. STAT. §1901 et seq.

2. Consult Regional Underwriting if you are not handling the recordation and payment of mortgage taxes directly; that is, if the insured lender or another escrow agent has recorded or will be recording the Insured Mortgage.

3. You must obtain the approval of Regional Underwriting to issue this endorsement on any basis other than as specified above.


.



ALTA Endorsement Form 38-06 (Mortgage Tax ) (12/03/12)

ENDORSEMENT


Issued by

[FNTG Underwriter]

1. The insurance provided by this endorsement is subject to the exclusions in Sections 4 and 5 of this endorsement, the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.

2. For the purposes of this endorsement only, “Mortgage Tax” means a recordation, registration or related tax or charge required to be paid when the Insured Mortgage is recorded in the Public Records.

3. Upon payment of any deficiency in the Mortgage Tax, including interest and penalties, by the Insured, the Company insures against loss or damage sustained by the Insured by reason of:

a. the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or

b. the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax.

4. The Company does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) resulting from the failure of the Insured to pay the Mortgage Tax deficiency, together with interest and penalties.

5. The Company is not liable for the payment of any portion of the Mortgage Tax, including interest or penalties.






ALTA ENDORSEMENT FORM 39-06 (Policy Authentication)

Purpose: This endorsement provides coverage to the insured lender that the Company will not deny liability under the policy or any endorsements issued with the policy solely on the grounds that the policy or endorsements were issued electronically or lack signatures in accordance with the

Conditions.


Loan Policy


Underwriting Requirements: The policy and any endorsements to the policy must have been issued in accordance with the underwriting guidelines of the Company.


.



ALTA Endorsement Form 39-06 (Policy Authentication ) (4/02/13)

ENDORSEMENT


Issued by

[FNTG Underwriter]

When the policy is issued by the Company with a policy number and Date of Policy, the Company will not deny liability under the policy or any endorsements issued with the policy solely on the grounds that the policy or endorsements were issued electronically or lack signatures in accordance with the Conditions. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory





ALTA ENDORSEMENT FORM 40-06 (Tax Credit-Owner's Policy)

Purpose: The ability to gain tax benefits by investing in certain types of real estate projects encourages that type of private money for projects that may have public purposes. The ALTA Form. 40 series of endorsements or for the benefit of individual tax credit investors. This endorsement insures against loss or damage sustained by the Tax Credit Investor by a reduction in a tax credit that is caused solely by a defect, lien, encumbrance, or other matter insured against by the policy.


Suggested Premium:

$100.00

Underwriting Requirements: 1. The name of the Tax Credit Investor

should be shown in Paragraph 2a of the endorsement.

2. The Insured in the policy and the Tax Credit Investor must consent in writing on the face of the endorsement to the assignment of benefits. Under the endorsement.




ALTA ENDORSEMENT FORM 40-06 (Tax Credit-Owner’s Policy) (04/02/14)

ENDORSEMENT


Issued By

[FNTG Underwriter]

1. This endorsement is subject to the exclusions in Section 4 of this endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


a. “Tax Credit Investor” means __________________________.

b. “Tax Credit” means a tax credit in effect at Date of Policy pertaining to the Land that is available to the Tax Credit Investor under an applicable section of the Internal Revenue Code or other applicable law.

3. The Company insures against loss or damage, not exceeding the Amount of Insurance, sustained by the Tax Credit Investor by a reduction in a Tax Credit that is caused solely by a defect, lien, encumbrance, or other matter insured against by the policy, subject to the limitations in Section 8(a) of the Conditions. The Company has no liability to the Tax Credit Investor under this endorsement until:

a. its liability and the extent of a loss insured against by the policy have been definitely fixed in accordance with the Conditions; and

b. the Tax Credit Investor establishes the reduction in the amount of a Tax Credit.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees, or expenses) incurred in defending or establishing:

a. the eligibility of the Tax Credit Investor or the Land for a Tax Credit;

b. that the Tax Credit Investor or the Land is entitled to a Tax Credit; or

c. the existence, ownership, or amount of a Tax Credit.

5. The calculation of loss or damage under this endorsement shall be subject to Section 11 of the Conditions. In addition, the Company shall not be liable for duplicate recoveries of loss or damage to the Insured and Tax Credit Investor.

6. The Insured:

a. assigns to the Tax Credit Investor the right to receive any payment or portion of a payment for loss or damage otherwise payable to the Insured under Section 12 of the Conditions, but only to the extent of the reduction in the amount of a Tax Credit; and

b. acknowledges that any payment made by the Company to the Tax Credit Investor under this endorsement shall reduce the Amount of Insurance as provided in Section 10 of the Conditions.





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



[Witness clause optional]

Agree and Consented to:

________________________________

Insured

________________________________

Tax Credit Investor

By: _________________________________________


ALTA ENDORSEMENT FORM 40-06 (Tax Credit-Owner’s Policy) (04/02/14)





ALTA ENDORSEMENT FORM 40.1-06 (Tax Credit-Defined Amount-Owner's Policy))

Purpose: The ability to gain tax benefits by investing in certain types of real estate projects encourages that type of private money for projects that may have public purposes. The ALTA Form. 40 series of endorsements or for the benefit of the individual tax credit investors. This endorsement runs to the investor, insures against loss or damage sustained by the Tax Credit Investor by a reduction in a tax credit that is caused solely by a defect, lien, encumbrance, or other matter insured against by the policy. An additional amount of insurance may be included in the endorsement. In addition to the amount of insurance stated in Schedule A of the policy.


Suggested Premium:

$100.00

Underwriting Requirements: 1. The name of the Tax Credit Investor

should be inserted in Paragraph 2a of the endorsement.

2. The amount of additional insurance must be included in Paragraph 2c of the endorsement.




ALTA ENDORSEMENT FORM 40.1-06 (Tax Credit-Defined Amount-Owner’s Policy) (04/02/14)

ENDORSEMENT


Issued By

[FNTG Unwriter] 1. This endorsement is subject to the exclusions in Section 4 of this endorsement; and the Exclusions from

Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions in the policy.


a. “Tax Credit Investor” means __________________________.

b.“Tax Credit” means a tax credit in effect at Date of Policy pertaining to the Land that is available to the Tax

Credit Investor under an applicable section of the Internal Revenue Code or other applicable law.

c. “Additional Amount of Insurance” means $____________. It is in addition to the Amount of Insurance

stated in Schedule A and is applicable only to loss or damage payable to the Tax Credit Investor under this

endorsement.

3. The Company insures against loss or damage, not exceeding the Additional Amount of Insurance, sustained

by the Tax Credit Investor by a reduction in a Tax Credit that is caused solely by a defect, lien, encumbrance

or other matter insured against by this policy. The Company has no liability to the Tax Credit Investor under

this endorsement until:

a. its liability and the extent of a loss insured against by the policy have been definitely fixed in accordance

with the Conditions; and

b. the Tax Credit Investor establishes the reduction in the amount of a Tax Credit.

4. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys’

fees, or expenses) incurred in defending or establishing:

a. the eligibility of the Tax Credit Investor or the Land for a Tax Credit;

b. that the Tax Credit Investor or the Land is entitled to a Tax Credit; or

c. the existence, ownership, or amount of a Tax Credit.





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



By: _________________________________________


ALTA ENDORSEMENT FORM 40.1-06 (Tax Credit-Defined Amount-Owner’s Policy) (04/02/14)





ALTA ENDORSEMENT FORM 41-06 (Water-Buildings)

Purpose: This endorsement insures against loss or damage by reason of the enforced removal or alteration of any Improvement resulting from water extraction/development. For purposes of the endorsement, "Improvement" means a building on the Land at Date of Policy.


Loan Policy

Suggested Premium:

Contact Regional Underwriting

Underwriting Requirements: This endorsement constitutes an extra-hazardous risk, and may be provided only when: 1. You have obtained Regional

Underwriting Approval.

2. To determine whether or not the endorsement may be issued, the following information will be required:

a. Weather service use was waved are

limited in the instrument's granting or reserving water rights as excepted from the legal description in Schedule A, are shown as an exception in Schedule B;

b. Whether any right of access exist to benefit the party holding the water rights;

c. Whether use of the surface to extract the water would interfere with existing improvements; and

d. Whether the house any rights or enforceable.




ALTA ENDORSEMENT FORM 41-06 (Water-Buildings)(12/02/13)

ENDORSEMENT


Issued By



2. For purposes of this endorsement only, "Improvement" means a building on the Land at The date of Policy. 3. The company insures against loss or damage sustained by the Insured by reason of the enforced removal or

alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.


fees, or expenses) resulting from:

a. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence; [or] b. Negligence by a person or an Entity exercising a right to extractor developed water; [or c. The exercise of the rights described in ].* *Instructional note: identify the interest excepted from the description of the Land in Schedule A or

excepted in Schedule B that you intend to exclude from this coverage.





ALTA ENDORSEMENT FORM 41.1-06 (Water-Improvements)

Purpose: This endorsement insures against loss or damage by reason of the enforced removal or alteration of any Improvement resulting from water extraction/development. For purposes of the endorsement, "Improvement" means a building, structure located on the surface of the Land, and any paved road, walkway, parking area, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.


Loan Policy

Suggested Premium:










3. In the endorsement, specific water rights

may be excluded from coverage in Paragraph 4c.

4. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 41.1-06 (Water-Improvements) (12/02/13)

ENDORSEMENT


Issued By



2. For purposes of this endorsement only, "Improvement" means a building, structure located on the surface of the Land, and any paved road, walkway, parking area, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.

3. The company insures against loss or damage sustained by the Insured by reason of the enforced removal or










ALTA ENDORSEMENT FORM 41.2-06 (Water-Described Improvements)

Purpose: This endorsement insures against loss or damage by reason of the enforced removal or alteration of any Improvement resulting from water extraction/development. For purposes of the endorsement, "Improvement" means a building, structure located on the surface of the Land, and any paved road, walkway, parking area, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.


Loan Policy

Suggested Premium:










3. In the endorsement, specific water

rights may be excluded from coverage in Paragraph 4c.




ALTA ENDORSEMENT FORM 41.2-06 (Water-Described Improvements) (12/02/13)

ENDORSEMENT


Issued By



2. For purposes of this endorsement only, "Improvement" means each improvement on the Land at Date of Policy itemized [on the exhibit attached to this endorsement.] [below]












ALTA ENDORSEMENT FORM 41.3-06 (Water-Land Under Development)

Purpose: This endorsement insures against loss or damage by reason of the enforced removal or alteration of any Improvement or Future Improvement resulting from water extraction/development. For purposes of the endorsement, "Improvement" means a building, structure located on the surface of the Land, and any paved road, walkway, parking area, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees. "Future Improvement" means an Improvement be constructed on or affixed to the Land in the locations according to the Plans identified in the endorsement.


Loan Policy

Suggested Premium:


Underwriting Requirements: This endorsement constitutes an extra-hazardous risk, and may be provided only when:

1. You have obtained Regional Underwriting Approval.

2. To determine whether or not the

endorsement may be issued, the following information will be required:






3. The "Plans" for future development should be identified in Paragraph 2f of the endorsement;

4. In the endorsement, specific water rights may be excluded from coverage in Paragraph 4c.




ALTA ENDORSEMENT FORM 41.3-06 (Water-Land Under Development) (12/02/13)

ENDORSEMENT


Issued By




a. “Improvement” means a building, structure located on the surface of the Land, and any paved road, walkway, parking area, driveway, or curb, affixed to the Land at Date of Policy and that by law constitutes real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.

b. “Future Improvement” means a building, structure, and any paved road, walkway, parking area, driveway, or curb to be constructed on or affixed to the Land in the locations according to the Plans and that by law will constitute real property, but excluding any crops, landscaping, lawn, shrubbery, or trees.

c. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by dated , last revised , designated as consisting of sheets.









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. Dated: By: Authorized Signatory ALTA ENDORSEMENT FORM 41.3-06 (Water-Land Under Development) (12/02/13)





ALTA ENDORSEMENT FORM 42-06 (Commercial Lender Group)

Purpose: In many commercial mortgages, a group of leading institutions may participate in funding the Indebtedness, and many participants ask for an acknowledgment in the policy of their participation. Section 2 of the endorsement defines "Lender Group" and "Participant". The definition of "Lender Group" acknowledges that its composition may change by the addition or withdrawal of Participants. This endorsement insures against loss or damage sustained by the lender by reason of the invalidity or unenforceability, or loss of priority of the lien of the Insured Mortgage caused by transfers after Date of Policy of portions of the Indebtedness by the Participants.


Suggested Premium:

$100.00

Underwriting Requirements: The insured Land must be non-residential, that is, the Land is not improved with a one-to-four family residential dwelling. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



ALTA ENDORSEMENT FORM 42-06 (Commercial Lender Group Endorsement) (12/02/13)

ENDORSEMENT


Issued By

[FNTG Underwriter] 1. The insurance provided by this endorsement is

a. subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and

the Conditions in the policy, and

b. only effective if the Land is not improved with a one-to-four family residential dwelling.


a. “Lender Group” means a group of lenders owning portions of the Indebtedness. The composition of the Lender Group may change by the addition or withdrawal of Participants during the term of the Insured Mortgage. .

b. “Participant” means a member of the Lender Group but does not include a non-insured obligor as described in Section 12 (c) of the Conditions. A Participant is an insured under the policy to the extent of its ownership of a portion of the Indebtedness, whether it acquires its portion of the Indebtedness on or after Date of Policy.


a. The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

b. Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after Date of Policy of portions of the Indebtedness by the Participants.

4. The Company reserves all rights and defenses as to any Participant that the Company would have had against any other Insured under the policy, unless the Participant acquired its portion of the Indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter insured against by this policy.



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. Dated: By: Authorized Signatory ALTA ENDORSEMENT FORM 42-06 (Commercial Lender Group Endorsement) (12/02/13)





ALTA ENDORSEMENT FORM 43-06 (Anti-Taint)

Purpose: Commercial loan credit facilities may include several different loan types within a single credit or loan agreement, the obligations under which are to be secured by the Insured Mortgage. The most common combination of loan types would provide for both a "term loan" and a "revolving credit loan" in the same credit or loan agreement. This endorsement insures against loss or damage by reason of the loss of priority of the lien of the Insured Mortgage as security for the "term loan component" of a credit facility, resulting from the unique features of reductions and subsequent increases in principal of the "revolving credit loan component" of the same credit facility.


Suggested Premium:

$100.00

Underwriting Requirements: 1. The loan documents must be reviewed

to determine that the amounts advanced and reductions made under the "term loan component" of the credit facility are separately identifiable from the "revolving credit loan component".




ALTA ENDORSEMENT FORM 43-06 (Anti-Taint) (12/02/13)

ENDORSEMENT


Issued By

[FNTG Underwriter] 3. The insurance provided by this endorsement is subject to the Exclusions from Coverage, the Exceptions from

Coverage contained in Schedule B, and the Conditions in the policy.


c. “Loan Agreement” means the Agreement dated , by and between the Insured and .

d. “Revolving Credit Loan” means the portion of the Indebtedness that is a revolving credit facility as more vertically defined in the Loan Agreement.

e. “Term Loan” means the portion of the Indebtedness that is a term loan facility as more particularly defined in the Loan Agreement.

5. The Company insures against loss or damage sustained by the Insured by reason of the loss of priority of the lien of the Insured Mortgage, as security for the amount of the Indebtedness advanced as the Term Loan, resulting from reductions and subsequent increases of the outstanding principal amount of the Indebtedness payable as the Revolving Credit Loan.





ALTA ENDORSEMENT FORM 44-06 (Insured Mortgage Recording-Loan)

Purpose: This endorsement provides coverage against the risk that title defects attach during any "gap" period between the date when the lender funds its loan and the subsequent date when the Insured Mortgage is recorded in the land records, IF the settlement/closing date is used as the Date of Policy and that date occurs prior to recording. This endorsement is meant to cover the shorter "recording" gap from the date of closing to the actual date of recording. The endorsement may be issued at such time as the Insured Mortgage has been recorded, and the date of recording and the recording instrument number has been obtained. To facilitate "table funding," or "gap closing" transactions, the 2006 ALTA Loan Policy which designed so that it may be issued at the closing, even though the necessary recording function has not yet been completed.


Suggested Premium:

$100.00

Underwriting Requirements: 1. Regional Underwriting Approval;

2. A title down date must be performed prior to

closing/funding the transaction

3. The recording information for the Insured

Mortgage is set out in Paragraph 3 of the endorsement.




ALTA ENDORSEMENT FORM 44-06 (Insured Mortgage Recording-Loan) (12/02/13)

ENDORSEMENT


Issued By

[FNTG Underwriter] 6. The insurance provided by this endorsement is subject to the Exclusions from Coverage, the Exceptions from

Coverage contained in Schedule B, and the Conditions in the policy.

7. The Company insures against loss or damage sustained by the Insured by reason of the failure of the Insured Mortgage to have been recorded in the Public Records as set forth in Section 3 below.

8. Paragraph 4 of Schedule A, is amended to read as follows:

The insured Mortgage and its assignments, if any, are described as follows: Mortgage [Deed of Trust] [The deed to Secured Debt]: Mortgagor: Mortgagee: Dated: Recorded: Recording/Instrument Number:






ALTA ENDORSEMENT FORM 45-06 (Pari Passu Mortgage )

Purpose: When two different mortgagees agree to share the same lien priority, they are termed "pari passu". This endorsement addresses the needs of lenders who are obtaining co-equal lien priority with other lenders relating to a specific parcel or parcels of real property collateral of the debtor. This type of transaction typically arises in the context of credit facility transactions where multiple lenders seek to obtain equal lien priority through separately record mortgages and an associated intercreditor agreement. The endorsement insures against loss by reason of the and unenforceability of the lien resulting solely from the agreement to share priority, and the lack of equal priority among the mortgages.


Suggested Premium:

$100.00


2. The other mortgage (s) involved must be

recorded and shown as exceptions in Schedule B;

3. The Intercreditor Agreement must be

recorded and shown as a Schedule B exception;

4. If the terms creating the sharing of

priority is in the second mortgage itself, or an amendment to an already recorded mortgage, the instrument containing the "pari passu" provisions should be set out a second time as a separate exception as follows: "Terms and conditions of the _____ shown above as to the provisions that create the pari passu priority between the Insured Mortgage and said ____________."




ALTA ENDORSEMENT FORM 45-06 (Pari Passu Mortgage) (12-1-14)

ENDORSEMENT


Issued By

[FNTG Brand]

1. The insurance provided by this endorsement is subject to the exclusions in Section 4 of this endorsement,

the Exclusions from Coverage in the policy, the Exceptions from Coverage contained in Schedule B, and the Conditions.

2. For the purpose of this endorsement only: (a) “Intercreditor Agreement” means each agreement described in Exceptions ____ of Schedule B of

the policy among the Pari Passu Lenders; (b) “Pari Passu Lender” means each respective lender secured by a Pari Passu Mortgage that has a

policy issued by the Company insuring its Insured Mortgage or Pari Passu Mortgage; and (c) “Pari Passu Mortgage” means the Insured Mortgage and each mortgage described in Exceptions

____ of Schedule B of the policy.

3. The Company insures against loss or damage sustained by the Insured by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage resulting solely from the

provisions of a Pari Passu Mortgage or Intercreditor Agreement establishing lien priority; or (b) the lack of equal lien priority of the Insured Mortgage to the other Pari Passu Mortgages.

4. The Company does not insure against loss or damage (and the Company will not pay costs, attorneys'

fees, or expenses) resulting from: (a) the failure of the Insured or any Pari Passu Lender to comply with the terms of the Pari Passu

Mortgage or Intercreditor Agreement; (b) the failure of the Insured and each other Pari Passu Lender to simultaneously foreclose the

Insured Mortgage with each other Pari Passu Mortgage; or (c) any provision in the Intercreditor Agreement that creates a preference among the Pari Passu

Lenders for the sharing of the Indebtedness.

5. If the Insured, any other Pari Passu Lender, or others have conflicting claims to all or part of the loss payable under the policy, the Company may interplead the amount of the loss into court. The Insured and any other Pari Passu Lender shall be jointly and severally liable for the Company’s reasonable cost for the interpleader and subsequent proceedings, including attorneys’ fees. The Company shall be entitled to payment of the sums for which the Insured and any other Pari Passu Lender are liable under the preceding sentence from the funds deposited into court, and it may apply to the court for their payment.





Dated:

By: ___________________________________ Authorized Signatory ALTA Endorsement Form 45-06

(Pari Passu Mortgage) (12/1/14)





ADDITIONAL INSURED ENDORSEMENT

Purpose: Amends the policy to add a named insured to and Owner's Policy. This endorsement does not change the effective date of the policy, it does not impose liability on the Company resulting from: (i) the failure of the added insured to acquire an insurable estate or interest in the Land; or (ii) any defect, lien, or encumbrance attaching by reason of the acquisition of the estate or interest in the Land by the added

insured.


Owner's Policy


Underwriting Requirements: Regional Underwriting approval.




ADDITIONAL INSURED ENDORSEMENT


[FNTG Underwriter] The policy is hereby amended by adding as a named insured therein . This endorsement does not extend the coverage of the policy to any later date than Date of Policy, nor does it impose any liability on the Company for loss or damage resulting from (1) failure of such added insured to acquire an insurable estate or interest in the Land, or (2) any defect, lien or encumbrance attaching by reason of the acquisition of an estate or interest in the Land by such added insured.




ASSIGNMENT OF RENTS (LEASES) ENDORSEMENT (Form B-Contained in

Mortgage)

Purpose: Lenders occasionally request that the Loan Policy insure certain recorded interests that are taken as additional security for the loan primarily secured by the Insured Mortgage. The most common additional security, other than a security interest under the Uniform Commercial Code, is an assignment of rents (leases). This endorsement is to the issue to provide certain coverages with respect to a separate assignment of rents (leases) that is contained in the Insured Mortgage. This endorsement provides insurance that the assignment of rents (leases) is properly executed and that the Public Records do not disclose any prior assignments of the same

rents (leases).


Loan Policy


Underwriting Requirements: 1. A review of the Insured Mortgage

executed in connection with the insured transaction additionally provides for an assignment of rents (leases).

2. The title search does not reveal any prior assignments of rents (leases) other than those set forth in Schedule B.

3. Prior mortgages must be examined to

determine if they contain assignments of rents or leases. Separate Schedule B exceptions should be made to such assignments.




ASSIGNMENT OF RENTS (LEASES) ENDORSEMENT (Form B-Contained in Mortgage)

Attached to Policy No. ____________ Issued By

[FNTG Underwriter]

The Company insures the Insured against loss which said Insured shall sustain by reason of the existence, as shown by the Public Records, of any assignment of the rents (leases) prior to the assignment of rents (leases) contained in the Insured Mortgage, other than as set forth in Schedule B.




BALLOON ENDORSEMENT

Purpose: A balloon payment mortgage is a mortgage that does not fully amortize over the term of the loan, thereby leaving a balance due at the maturity date. The final payment is called a balloon payment. Sometimes the balloon payment mortgage includes a conditional right to refinance.

This endorsement provides insurance that the validity, enforceability, and priority of the Insured Mortgage is not affected by a conditional right to refinance or by a change in the rate of interest as provided in a "Balloon Mortgage Rider" attached to the Insured Mortgage, or as provided in the other express balloon mortgage language

provisions contained within the mortgage.


Loan Policy



1. A review of the Insured Mortgage as

originally created, verifies that it includes a balloon rider or requisite balloon language.

2. If a balloon writer rider is not attached to the Insured Mortgage, contact Regional Underwriting for approval of any purported balloon payment language set forth in the body of the Insured Mortgage.




BALLOON ENDORSEMENT



The Company insures against loss or damage sustained by the Insured by reason of: 1. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions therein

which provide for a Conditional Right to Refinance and a change in the rate of interest as set forth in the Mortgage Rider.

2. Loss of priority of the lien of the Insured Mortgage as security for the unpaid principal balance of the loan,

together with interest thereon, which loss of priority is caused by the exercise of the Conditional Right to Refinance and the extension of the loan term to the New Maturity Date set forth on the Rider and a change in the rate of interest, provided that all the conditions set forth in the Balloon Mortgage Rider have been met, the mortgagor remains the owner and occupant of the Land, and there are no other liens, defects, and encumbrances, or other adverse matters affecting title arising subsequent to Date of Policy.

This endorsement does not insure against loss or damage based upon: (a) usury; or (b) any consumer credit protection or truth in lending law; or (c) bankruptcy 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory



CONSTRUCTION DOWN DATE ENDORSEMENT

Purpose: In a construction transaction, the Loan Policy may be issued in the full amount of the construction lien. However, the lender will make periodic advances of the construction line at certain phases of the construction are completed. This endorsement is issued in conjunction with issuing a policy when the construction of improvements is immediately contemplated and the policy is issued with a

Pending Disbursements Exception and full mechanics’ liens coverage was provided (or the policy was issued with an Obligatory Advance Exception). This endorsement is used to "down date" a Loan Policy in a construction transaction each time the lender makes a construction loan disbursement to delineate the matters recorded since the date of the policy or the date of a previous endorsement. The endorsement reflects the amount of the construction loan disbursed to date by the lender. Please note that except as provided therein, this endorsement does not extend the effective date of the policy and any prior endorsements.


Loan Policy



1. A title down date must be performed to ascertain the title matters (such as mechanics' liens) appearing of record since the date of the policy or a previous endorsement;

2. The amount of the current construction loan disbursement in the aggregate amount of all construction loan disbursements to date should be inserted in the endorsement.

Note: For a general overview of mechanics'

liens coverage see Mechanics' Liens

Coverage (Page 300 et seq.) SAMPLE ENDORSEMENT ON FOLLOWING PAGE



CONSTRUCTION DOWN DATE ENDORSEMENT



Disbursement in the amount of $___________ having been made on account of the proceeds of the loan, liability under said policy is hereby recognized to be the amount of $___________.

The following matters appear of record since ___________________ (Date of policy or previous endorsement): 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. Dated: ________________ [Title Agent] By: Authorized Signatory

.


Table of Contents Endorsement Forms COVENANTS RUNNING WITH THE LAND ENDORSEMENT (Shopping Center;

CLTA 124.1)

Purpose: This endorsement is sometimes called a "shopping center endorsement" (or CLTA 124.1), and is typically requested in connection with multiple owners shopping center developments. Typically, the owners of the various parcels of property within a shopping center will enter into an agreement under which covenants will be made for each other's benefit to do or refrain from doing certain acts with regard to the use, repair, maintenance or improvement of, or payment of taxes and assessments on the property of the respective covenantors. This endorsement provides assurance that conforming covenants will be binding upon the covenantors and their successors in ownership, subject to the limitations contained in the endorsement. In other words, the instrument containing the covenants will give constructive notice to subsequent owners and lenders of the other parcels (not insured tracts) that there are burdens on their parcels. It does NOT insure the enforceability of those covenants, any request for that type of coverage should be

refused.


Loan Policy

Suggested Premium: 10% of BPR (min. $75 .00)


2. Regional Underwriting must review the

covenants to determine whether they impart record notice and are sufficient to run with the land of the other affected parcels, and are binding upon subsequent owners of the burdened properties.

3. No insurance shall be issued in a form which would ensure enforceability or compliance with any such covenants.




COVENANTS RUNNING WITH THE LAND ENDORSEMENT (SHOPPING CENTER ENDORSEMENT)



The Company insures against loss or damage sustained by reason of, the failure of the covenants of the covenantor in favor of the covenantee set out in Section(s) of the instrument recorded at to do or refrain from doing some act relating to the use, repair or maintenance of the improvements , or payment of taxes and assessments on the real property, or some part thereof, described as (description of burdened land of covenantor) to be binding upon the covenantor and each successive owner, during his ownership, of any portion of such real property, and upon each person having any interest therein derived from the covenantor or through any such successive owner thereof, except a mortgagee of a mortgage, or the trustee or beneficiary of a deed of trust, while not in possession of such real property in such capacity. Provided, however, that no insurance coverage is provided by this Endorsement should such covenants fail to bind a successive owner who derives Title through: (a) a tax deed; (b) a foreclosure of a bond or assessment; (c) enforcement of a federal tax lien; (d) a bankruptcy, as trustee or otherwise; or (e) a right or lien existing prior to the date of recording of the instrument containing said covenants. This endorsement does not insure against loss or damage which the Insured may sustain by reason of the non-performance of any said covenants. 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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory



CORRECTION ENDORSEMENT- MISCELLANEOUS ERRORS

Purpose: The purpose of this endorsement is solely to correct typographical errors, omissions, or additions relating to facts existing at Date of Policy. This endorsement is not intended to correct parties' errors in drafting the recorded documents or substantive errors, and is not intended to effectuate substantive changes or add additional parties, property or coverages.


Loan Policy

Suggested Premium: No Charge

Underwriting Requirements: Regional Underwriting approval.




CORRECTION ENDORSEMENT


[FNTG Underwriter] Item of Schedule of the Policy is hereby amended to read as follows: [Insert corrected language or otherwise describe the correction]

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. Dated: ________________ [Title Agent] By: __________________________________________________ Authorized Signatory

.



DELETION OF ARBITRATION ENDORSEMENT

Purpose: The 1987, 1990, and 1992 ALTA Policies contained arbitration provisions. Under the 2006 ALTA Owner's and Loan Policies, either the insured or insurer can require arbitration if the Policy does not exceed $2 million, law allows arbitration (some states do not allow a contract provision), and the arbitration provision is not deleted or amended. The arbitration clause may be deleted upon

request prior to Policy issuance.


Loan Policy

Suggested Premium: No Charge

Underwriting Requirements: 1. The following clause may be inserted in

Schedule B or in an endorsement to delete the arbitration clause from an ALTA 2006 Owner's Policy: "Section 14 of the Conditions of this Policy is hereby deleted."

2. The following clause may be inserted in Schedule B or in an endorsement to delete the arbitration clause from an ALTA 2006 Loan Policy: "Section 13 of the Conditions of this Policy is hereby deleted."




DELETION OF ARBITRATION ENDORSEMENT


[FNTG Underwriter]

[If attached to 2006 ALTA Owner’s Policy: Dated as of the Date of Policy, Section 14 of the Conditions of this Policy entitled “Arbitration” is hereby deleted.] [If attached to 2006 ALTA Loan Policy: Dated as of Date of Policy, Section 13 of the Conditions of this Policy entitled “Arbitration” is hereby deleted.] 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. Dated: ________________ [Title Agent] By: __________________________________________________ Authorized Signatory



DOWN DATE ENDORSEMENT (LOAN POLICY-NO MODIFICATION)

Purpose: This endorsement is used for the purpose of fully "down dating" the coverage under the

policy.


Loan Policy


Underwriting Requirements: 1. This endorsement may only be issued

after the title to the property has been fully updated and a determination has been made as to whether subsequently filed matters must be shown as Schedule B exceptions in the endorsement. Consideration must be given to survey matters and parties in possession. If a new survey is not provided, an appropriate exception may be necessary. An appropriate tax exception should also be included.


Note: If additional property (not insured by the original policy) is added and/or an additional loan advance is being made a new policy may be required. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



DOWN DATE ENDORSEMENT


[FNTG Underwriter] 1. Under Schedule A, the effective date of the policy is hereby amended to read

____________________, 20_______.

2. Under Schedule A, the amount of insurance is amended to read ____________________..

3. Under Schedule A, Item __________, the name of the Insured is amended to read:

_______________________________.

4. Under Schedule A, Item _________, the vested owner is amended to read:

________________________________.

5. Under Schedule A, Item _________, the Insured Mortgage is amended to read:

________________________________.

6. Schedule B, is amended to add the following:

Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage is

(a) a fraudulent conveyance or fraudulent transfer, or (b) 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 to a judgment or lien

creditor. Such state of facts occurring subsequent to survey by [surveyor’s name] dated [date of original or previous survey], as would be disclosed by a current, accurate survey and inspection of premises. Taxes for the year and subsequent years. [Insert intervening matters, if any] 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.




DOWN DATE ENDORSEMENT (OWNER'S POLICY)

Purpose: This endorsement is used for the purpose of fully "down dating" the coverage under the

policy.


Owner’s Policy








DOWN DATE ENDORSEMENT


[FNTG Underwriter] 1. Under Schedule A, the effective date of the policy is hereby amended to read

____________________, 20_______.


3. Under Schedule A, Item 1, the name of the Insured is amended to read:

_______________________________.

4. Under Schedule A, Item 3, the vested owner is amended to read:

________________________________.

5. Under Schedule A, Item 4, the Land referred to in the Policy is amended to read:

________________________________.

6. Schedule B, is amended to add the following:

Such state of facts occurring subsequent to survey by [surveyor’s name] dated [date of original or previous survey], as would be disclosed by a current, accurate survey and inspection of premises. Taxes for the year and subsequent years. [Insert intervening matters, if any] 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.




DOWN DATE ENDORSEMENT (LOAN POLICY-WITH MODIFICATION)

Purpose: This endorsement is used for the purpose of fully "down dating" the coverage under the policy. This endorsement is intended for use when the title down date reveals that the original insured mortgage has been modified. The modification instrument would be described under item 5 of the endorsement. This endorsement also includes a creditors' rights

exception.


Loan Policy








DOWN DATE ENDORSEMENT (With Modification)



1. Under Schedule A, the effective date of the policy is hereby amended to read

____________________, 20_______.


3. Under Schedule A, Item __________, the name of the Insured is amended to read:

_______________________________.

4. Under Schedule A, Item _________, the vested owner is amended to read:

________________________________.

5. Under Schedule A, Item _________, the Insured Mortgage is amended to read: ________________________________ (“Modification”). 6. Schedule B, is amended as follows:

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 which arises out of the transaction creating the Modification, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:

1. the Modification being deemed a fraudulent conveyance or fraudulent transfer; or 2. the Modification being deemed a preferential transfer except where the preferential transfer results from the

failure: a. to timely record the instrument of transfer; or b. of such recordation to impart notice to a purchaser for value or to a judgment or lien creditor. 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.

Dated: ________________ [Title Agent] By: Authorized Signatory



ENCROACHMENT-ADJOINING LAND ENDORSEMENT

Purpose: Provides the insured owner or lender with coverage against loss or damage by reason of a court-ordered removal of any portion of the improvements located on the insured

Land which encroach onto adjoining land.


Loan Policy

Suggested Premium: $100 .00 to 30% of BPR , depending upon the

risk


verifies the location and extent of the encroachment.





ENCROACHMENT – ADJOINING LAND ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured in the event that the owner of adjoining land shall compel, pursuant to final judgment or court decree, the removal of any portion of the improvements on the Land which encroach upon said adjoining land as referred to in paragraph of Schedule B.


.



ENCROACHMENT (DESCRIBED IN SCHEDULE B) ENDORSEMENT

Purpose: Provides the insured owner or lender with coverage against loss or damage by reason of a final, non-appealable judgment or court decree, that orders the removal of the portion of the improvements on the insured Land because of the encroachment

described in Schedule B.


Loan Policy

Suggested Premium: $100 .00 to 30% of BPR , depending upon the

risk


verifies the location and extent of the encroachment.





ENCROACHMENT ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage, if any, sustained by the Insured under the terms of this Policy by reason of a final, non-appealable judgment or court decree, that orders the removal of any portion of the improvements on the Land because of the encroachment referred to in paragraph of Schedule B.




FOUNDATION ENDORSEMENT (CLTA 102.4)

Purpose: Provides the insured construction lender with coverage against loss or damage by reason of: (i) the failure of the foundations of the structure under construction, on the Insured Land to be entirely within the boundary lines of the Land; and (ii) the location of the foundations as of the date of the endorsement being in violation of the covenants, conditions and restrictions

("CCRS") shown in Schedule B.


Loan Policy

Suggested Premium: 10% of BPR (MIN. $75 .00)

Underwriting Requirements: A review of the enforceable CCRS affecting the property and a current acceptable survey verify:

1. The foundations of all buildings are

located entirely within the boundary lines of the Iinsured Land; and

1. The foundation locations do not violate enforceable CCRs.




FOUNDATION ENDORSEMENT (Form 102.4)



The Company insures against loss or damage sustained by the Insured by reason of: (1) The failure of the foundation of the structure(s) under construction on the Land at Date of Policy to be within

the boundary lines of the Land; (2) The location of the foundations, at Date of Policy, being in violation of the covenants, conditions or restrictions

referred to in Schedule B. 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. Dated: ________________ [Title Agent] By: ________________________________________ Authorized Signatory

.



FOUNDATION ENDORSEMENT (Easements; CLTA 102.5)

Purpose: Provides the insured construction lender with the same coverage as the Foundation Endorsement (CLTA 102.4) and additionally provides coverage against the foundations encroaching into any easement noted as an

exception on Schedule B of the Loan Policy.


Loan Policy

Suggested Premium: 10% of BPR (MIN. $75 .00)

Underwriting Requirements: A review of the enforceable CCRS affecting the property and a current acceptable survey verify:

2. The foundations of all buildings are

located entirely within the boundary lines of the Insured Land; and

3. the foundation locations do not violate enforceable CCRs;

4. The foundations of all buildings do not encroach into any easement shown as an exception on Schedule B; if the foundations do encroach into any easement, contact Regional Underwriting.




FOUNDATION ENDORSEMENT (CLTA Form 102.5)



The Company insures against loss or damage sustained by the Insured by reason of: (1) The failure of the foundation(s) of the structure(s) under construction on the Land at Date of Policy to be within

the boundary lines of the Land; (2) The location of the foundations, at Date of Policy, being in violation of the covenants, conditions or restrictions

referred to in Schedule B; (3) The foundations encroaching as of Date of Policy onto any of the easements referred to in Schedule B. 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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory



LAST DOLLAR ENDORSEMENT

Purpose: This endorsement is often requested by the lender when the loan secured by the insured mortgage is greater than that the value of the property and the amount of the policy to be insured. It provides insurance that the coverage of the policy will not be reduced by payments made on the secured indebtedness until such time as the total indebtedness has been reduced to an amount equal to the amount of the policy. At that time, policy coverage is reduced on a

$1.00 for $1.00 pro tanto.

Policy To Be Endorsed: Loan Policy (other than the ALTA 2006 Loan

Policy)

Suggested Premium: 10% of BPR (min. $75 .00)

Underwriting Requirements: Regional Underwriting approval. The Last Dollar Endorsement may not be used with the ALTA 2006 Loan Policy. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



LAST DOLLAR ENDORSEMENT (Application of Mortgage Payments) (For 1987, 1990 and 1992 Loan Policy Versions)



The Company has been advised by the insured that the mortgage insured herein secures an indebtedness to the insured in an amount in excess of the amount of this policy. The Company agrees that in calculating the amount of indebtedness secured by the insured mortgage under paragraphs 7 and 9 of the Conditions and Stipulations of this policy, payments made to reduce the amount of said indebtedness (except payments made by the Company pursuant to provisions of this policy) shall be deemed applied first to the portion of said indebtedness that is in excess of the amount of insurance stated in Schedule A. Furthermore, it is agreed that the books and records of the insured with respect to the payment of the indebtedness secured by the mortgage shall be conclusive evidence of the application of payments of the indebtedness. Said books and records shall be kept according to any proper and recognized method of accounting for payment of secured obligations. 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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory



MECHANIC'S LIEN ENDORSEMENT (Insuring Over Specific Mechanic's Lien)

Purpose: Provides insured owner or lender with coverage against loss or damage by reason of the enforcement or attempted enforcement of a specific mechanic's lien or

liens shown in Schedule B.


Loan Policy

Suggested Premium: $100 .00 to 30% of BPR, depending on the

sixth risk




MECHANIC’S LIEN ENDORSEMENT (INSURING OVER)


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured by reason of the enforcement or attempted enforcement of the mechanic’s liens shown in Item(s) , of Schedule B.


. .



MINERAL PRODUCTION- CITY ORDINANCE ENDORSEMENT

Purpose: This endorsement provides protection against loss the insured would sustain in the event the City named in the endorsement does not have the City Ordinance attached to the endorsement. The endorsement is intended to provide assurances to the insured that an ordinance does exist that provides some limitation on mineral expiration and/or development within

the City.


Loan Policy


Underwriting Requirements: 1. Obtain a copy of the ordinance for the

City wherein the Insured Land is located that places restrictions and/or limitations on oil and gas exploration or development. That ordinance must be referred to in the endorsement in the space provided for and must be attached in full as an attachment to the endorsement.

2. Do not recite only portions of the ordinance or attach only portions. You must attach a full copy of the City Ordinance to the Endorsement.




MINERAL PRODUCTION - CITY ORDINANCE ENDORSEMENT



The Company insures the insured against loss or damage the insured shall sustain in the event there is not currently existing at Date of Policy the following Ordinance No. ___________ in the City of ________________, a copy of which ordinance is attached hereto. [Attach the current City ordinance that regulates oil and gas and mineral production within the City limits] 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory



PERMITTED PARTNERSHIP TRANSFER ENDORSEMENT (Fairway)

Purpose: This endorsement provides insurance that the underwriter will not deny a claim under a policy insuring a partnership if one or more general or limited partners transfers an interest in the partnership. This concern arises because, under the aggregate theory of partnership law, such a transfer would result in a technical dissolution of the partnership, even though there may be no formal winding up or termination of the partnership. However, with the 2006 ALTA Owner's Policy, this endorsement is not necessary because of changes to the definition of "Insured" in subsection 1 (d) (i) (B) of the

Conditions section of the policy.


Owner's Policy





PERMITTED PARTNERSHIP TRANSFER ENDORSEMENT (Fairway Endorsement)



The Company agrees that it will not interpose as a defense to a claim of coverage under this Policy the fact that a dissolution of the insured partnership has occurred, or a new partnership has been formed solely by reason of the withdrawal or replacement of one or more of the partners of the original insured partnership so long as the Insured remains as the titleholder, and no new partnership is explicitly formed. The Company reserves all of its rights and defenses under the policy which it would have had against the Insured or its constituent partners before or after any withdrawal or replacement. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory



PRIORITY AFTER PARTIAL RELEASE ENDORSEMENT

Purpose: This endorsement provides insurance that the priority of the Insured Mortgage will not be lost due to the execution and recording of a partial release of a portion of the Land

covered by the original mortgage.


Loan Policy


Underwriting Requirements: A review of the partial release document verifies: 1. The partial release document has been

properly executed and recorded.

2. The legal description on the partial release document does not affect all of the Land covered by the Insured Mortgage.




PRIORITY AFTER PARTIAL RELEASE ENDORSEMENT


[FNTG Underwriter] The Company hereby insures against loss or damage which the Insured shall sustain by reason of any loss of priority of the Insured Mortgage on the estate or interest referred to in Schedule A in the remainder of the Land described in Schedule A, occasioned by the execution of a partial release dated the _______ day of _____________________, 20____, filed for record on the ___________ day of ____________________, _______, at __________M. in the Office of the _______________________________ of ______________ County, Oklahoma, under Clerk's File No. _________, or Book __________, Page __________. 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. Dated: ________________ [Title Agent] By: Authorized Signatory



SOURCE DEED ENDORSEMENT

Purpose: If the legal description in the seller's vesting deed differs significantly from the legal description generated in conjunction with a current survey, or if the property was recently plated as a new lot or subdivision, an Insured may want assurance that the two legal descriptions describe the same property. This endorsement can be used to provide that assurance that the two legal descriptions are describing the same

essential property.


Loan Policy


Underwriting Requirements: A surveyor must certify to the underwriter that the Land conveyed in the specified deed is the same property that is described in the surveyor's plat of survey or subdivision plat or condominium declaration. Often this is done in the preamble of the legal description. SAMPLE ENDORSEMENT ON FOLLOWING PAGE



SOURCE DEED ENDORSEMENT


[FNTG Underwriter] The Company insures against loss or damage sustained by the Insured in the event that the Land described on Schedule A of the Policy is not the same land that was conveyed to by that certain deed from , dated , recorded on , in Book , Page , of the Real Property Records of County, Oklahoma. 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. Dated: ________________ [Title Agent] By: ______________________________________________ Authorized Signatory



UNUSUAL RISK ENDORSEMENT ("Insuring Over"; CLTA 110.2)

Purpose: This endorsement may be used to provide unusual coverages, or to insure unusual risks where specific endorsement forms are

not available.


Loan Policy

Suggested Premium: $75 .00 to 30% of BPR, depending upon risk




UNUSUAL RISK ENDORSEMENT (Form 110.2)



The Company hereby insures the Insured against loss or damage which the Insured shall sustain by reason of the enforcement or attempted enforcement thereof against the Land in connection with Item ___________________, of Schedule B. 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. Dated: ________________ [Title Agent] By: _______________________________________________ Authorized Signatory .


Table of Contents MECHANIC’S LIEN COVERAGE

What is Mechanic’s lien Coverage? Lenders and sophisticated purchasers often request what is known as "mechanic’s lien coverage" in connection with a Loan Policy or Owner's Policy. This means the lender and purchaser will not accept a policy that contains a "general mechanic’s lien exception" in Schedule B of the policy. A "general mechanic’s lien exception" reads as follows:

"Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished imposed by law and not shown by the public records.”

When Mechanic’s lien Coverage is an Extra-Hazardous Risk The deletion of this exception constitutes an extra-hazardous risk to the underwriter, especially in the following three situations:

1. There has been construction on the land within the past four (4) months; 2. Work has begun on the contemplated construction before recordation of your mortgage, or there is on-going

construction on the land; or 3. The mortgage to be insured secures indebtedness to pay for contemplated construction.

Once perfected, a mechanics’ lien will attach to the property as of the date of the commencement of any construction and not as of the particular date of the furnishing of the material or performance of labor by a particular claimant. [42 OKLA. STAT. §141; Industrial Tile Company v. Home Federal Savings & Loan Association of Tulsa, 331 P. 2d 918 (Okla. 1958). In other words, the inception date of all mechanic’s liens on a construction project is the date that the commencement of any work, including dirt work, on the construction project began. This is often referred as the “doctrine of relation back” because all lien claims relate back to the date of the initial work on the project. The first category above is extra-hazardous because a mechanics’ lien claimant has four (4) months in which to file a mechanics’ lien affidavit to perfect his mechanic’s lien (sometimes referred to as the “Lien Period”). [42 OKLA. STAT. §§142 and 143]. If the Lien Period has not run before the policy effective date, a claimant could still timely file a valid or enforceable mechanic’s lien claim for which there could be liability under the policy. The second circumstance outlined above is the usual problem FNTG encounters with mechanic’s lien coverage. If construction has started before recordation of the mortgage or if construction is on-going on the land, then based on the relation back theory, the mortgage would not have priority over later filed mechanic’s lien claims. The third category above is extra-hazardous because the construction mortgage may not have or maintain priority over mechanic’s lien (even if the construction mortgage is recorded prior to commencement of the construction project) unless the construction lender is legally obligated to make construction loan advances. Liberty National Bank & Trust Company of Oklahoma City v. Kaibab, 591 P. 2d 692 (Okla. 1978) The determination of whether or not construction loan advances are obligatory is a factual question subject to interpretation. If construction is contemplated, you must: (i) confirm that no materials have been delivered to the land and no work has been commenced prior to recordation of the construction mortgage; and (ii) if FNTG is insuring a construction mortgage, the construction mortgage and construction loan documents must be reviewed by Regional Underwriting to determine whether or not the construction loan advances are obligatory upon the construction lender. A preliminary site inspection must be conducted prior to closing to confirm that there is no evidence of broken priority and that there is no need for mechanic’s liens underwriting (See "Underwriting the Mechanic's Lien Risk" below). A satisfactory site inspection must be conducted at the time of recordation of the insured construction mortgage, prior to funding, to confirm that there is no evidence of broken priority. The person performing the inspection must provide an affidavit of inspection so stating, supported by date-stamped photos.


Underwriting the Mechanic’s Lien Risk A policy should not be issued without a "general mechanic’s lien exception" unless approved by Regional Underwriting or done pursuant to established underwriting guidelines. Please note that any form of mechanic’s lien coverage in the three categories described above requires Regional Underwriting approval. Mechanic’s lien coverage in extra-hazardous risk situations is predicated upon “credit underwriting”, which means that the underwriting risk is analyzed based upon the creditworthiness of the party providing an indemnity to the underwriter against the mechanic’s lien risk. The approval process must be made by State and Regional Counsel, and depending on circumstances, Corporate Underwriting approval may be required. To initiate the mechanics’ lien risk underwriting process, you can anticipate that the following will be required by Regional Underwriting:

1. In situations where FNTG has determined that there may be broken lien priority, that is, the insured mortgage will not have priority over mechanic’s lien, information regarding the total unpaid cost of the construction project is necessary in quantifying the mechanic’s lien risk. Therefore, a copy of the construction contract, construction budget and source of funds information will be required as described below.

2. A copy of the construction loan budget from the contractor and the lender, and if the construction project has already started, the company will require satisfactory evidence as to the amount paid for construction to date, and the amount of funds necessary to complete the project;

3. Current financial statements from a creditworthy indemnitor - An indemnity against mechanic’s liens supported by a deposit of funds in escrow, or an indemnity against mechanic’s liens from a financially solvent indemnitor supported by current financial statements will be required. Only FNTG authorized indemnity forms may be used when providing mechanic’s lien coverage.

4. Satisfactory evidence that there are sufficient funds available to complete the construction project; and

5. Satisfactory lien waivers during the course of construction from all parties providing labor and/or material in the construction project.

Keep in mind that FNTG will not provide mechanic’s lien protection to an owner on an Owner Policy during construction. To do so would be protecting the owner against its own acts, and therefore would not be a sound underwriting risk. Loan Policies issued to insure a mortgage securing a construction loan will be required to contain the Pending Disbursements and Obligatory Advance exceptions delineated on the following pages. On a case-by-case basis, Regional Underwriting may agree to remove the obligatory advance exception-based upon a review of the construction mortgage and loan documents for a determination as to whether or not the construction loan advances are "obligatory" upon the lender. Underwriting Note

Oklahoma is what FNTG refers to as a “Factual Statutory Priority” state regarding mechanics’ liens. That is, a construction loan will not have priority over mechanics’ liens unless a factual determination has been made that: (i) the insured construction mortgage is recorded prior to commencement of construction/delivery of materials; and (ii) a review of the construction loan agreement and mortgage indicate the construction loan advances are “obligatory” upon the lender. As FNTG is concerned about the risk posed by providing a lender with mechanics’ liens coverage in the construction loan context, FNTG has imposed the following requirements:

The default coverage on construction loan transactions is to provide the interim coverage (limited

mechanics’ liens coverage) using the ALTA 32-06 in conjunction with the ALTA 33-06;


For transactions of $25 million or more, mechanics’ liens coverage (full or limited) must be

approved by a senior FNTG underwriter;

o Note that it is unlikely that FNTG will approve anything other than the ALTA 32-06/33-06

and from coverage;

For transactions for $500,000.00 or less, a FNTG Certified Oklahoma State Counsel may

approve mechanics’ liens coverage (full or limited);

For transactions more than $500,00.00 but less than $5 million, Oklahoma Regional Counsel may

approve mechanics’ liens coverage (full or limited).

Table of Contents


Table of Contents Back to Mechanic's Liens Coverage

PENDING DISBURSEMENTS EXCEPTION

Pending disbursement of the full proceeds of the loan secured by the mortgage insured, this policy insures only to

the extent of the amount actually disbursed, but increases as each disbursement is made in good faith for the

payment of construction costs, up to the face amount of the policy. At the time of each disbursement of the

proceeds of the loan, the title examination must be continued down to such time for possible liens, including

mechanics’ liens, and other exceptions intervening between the date hereof and the date of such disbursement.


Table of Contents Back to Mechanic's Liens Coverage

OBLIGATORY ADVANCE EXCEPTION Liability of the Company for loss of priority of the lien of the insured mortgage over any statutory lien for labor or

material shall extend only to the portion of the proceeds of the loan disbursed pursuant to a legal obligation to

disburse in accordance with the provisions of the construction loan disbursement agreement between mortgagor

and the lender.

Note:

On a case-by-case basis, Regional Underwriting may agree to remove the obligatory advance exception-based upon a review of the construction mortgage and loan documents for a determination as to whether or not the construction loan advances are "obligatory" upon the lender.