OTIRO No. 88 LCLP Credit Line/Variable Rate Endorsement (9-4-23)

OTIRO 88 LCLP - CREDIT LINE/VARIABLE RATE ENDORSEMENT

ATTACHED TO POLICY NUMBER ______________

ISSUED BY

STEWART TITLE GUARANTY COMPANY

Provided That:

a.   There is only a one-to-four family residential structure or residential condominium unit with common elements appurtenant thereto, including improvements related to residential use on the Mortgaged Premises;

b.   The Lender’s Mortgage recorded as shown on the date-down endorsement (OTIRO Endorsement 77) attached to the policy, between the Lender and the Owner named in Exhibit I, creates a lien on the Land; and

c.   The Owner named in Exhibit I is the owner of the Land at the date an advance of money is made pursuant to the note or agreement secured by the Lender’s Mortgage.

The Company insures the Lender against loss or damage sustained by reason of any incorrectness in the following certifications:

A.   That future advances shall have the same priority over liens, encumbrances and other matters disclosed by the public records as do advances secured by the Lender’s Mortgage at the date of its recording, except for the following matters:

(1)  Real estate taxes or assessments.

(2)  Federal tax liens.

(3)  Liens, encumbrances, or other matters, the existence of which are actually known to the lender prior to the date of an advance, if the advance is made subsequent to the occurrence of an event of default under the terms of the Insured Mortgage and prior to a cure of such default.

(4)  Environmental protection liens.

B.   The provisions of the Lender’s Mortgage which provide for changes in the rate of interest will not render the lien of the Lender’s Mortgage invalid or unenforceable.

C.   Changes in the rate of interest calculated in accordance with the formula provided in the Lender’s Mortgage at date of recording will not cause a loss of priority in the lien of the Lender’s Mortgage.

The Company further insures the Lender that advances secured by the Lender’s Mortgage shall be included within the coverage of the policy, not to exceed the Amount of Insurance thereof.

This endorsement does not insure:

(a)  That the owner owns the Land, nor that the Lender’s Mortgage creates a lien on the Land, nor the validity, enforceability, or priority of any such lien, except to the extent expressly stated; nor

(b)  Against loss or damage based upon

      (i)   usury,

      (ii)   any consumer credit protection or truth in lending law, or

      (iii)  bankruptcy or insolvency proceedings of the borrower.

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 face amount of the policy.  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.