Endorsements: Form 2074 Instructions

NOTES:

Coverage: Ordinarily, when a lender asks for a title policy in an amount of insurance less than the face amount of the mortgage, Condition 8(a) on the Loan Policy jacket would apply. Condition 8(a) states ATG is liable for the lesser of the Amount of Insurance or the Indebtedness. The Last Dollar Endorsement adjusts that provision by stating that ATG will not reduce the liability on the policy to the Amount of Insurance until the indebtedness is paid down to the value of that amount.

Procedure: This endorsement may be issued on Loan Policies. This endorsement is only issued upon the request of the lender. To issue this endorsement, confirm that the Amount of Insurance is less than the indebtedness on the mortgage. Then, require an explanation for why the endorsement is being requested and Contact an Underwriter for approval to issue. An example of an approved explanation for issuing the endorsement is that the Amount of Insurance is equal to the value of the land, but there is other collateral securing the debt.

Questions? Contact an Underwriter.