Endorsements: Form 2104-06 Instructions

NOTES:

Coverage: This endorsement is similar to the Assignment Endorsement (ALTA 10-06), as it insures against loss or damage resulting from the failure of the effectiveness of a post-policy assignment of the insured mortgage and that no release or reconveyance has been placed of record (other than as may be noted in the endorsement).

Unlike the Assignment Endorsement, however, the Assignment and Date Down Endorsement provides coverage over certain matters occurring after the effective date of the policy and before the Date of Endorsement. These matters include: real estate taxes or assessments; priority over intervening defects, liens or encumbrances; and recorded federal tax liens and notices of bankruptcy proceedings. To the extent any such matters have arisen since the date of the policy and prior to the Date of Endorsement, they should be raised specifically in the endorsement.

The coverage provided by this endorsement is conditioned upon the proper endorsement and delivery of the underlying notes. Further, as is the case with all other endorsements, this endorsement does not extend the Date of Policy for purposes other than as stated, that is, the endorsement does not bring forward any other coverages that are a part of the policy.

Procedure: This endorsement may be issued on Loan Policies only. To issue this endorsement, you must conduct a later date search that turns up the assignment. Obtain a copy of the recorded assignment and read it to be certain that it validly assigns the mortgage and the debt it secures to the assignee. In addition, obtain copies of any lien, encumbrance, tax lien, bankruptcy proceeding notice, reconveyance, release, or discharge. Please fill in each item on the endorsement in the appropriate blanks. Once these two tasks are completed, you may issue the endorsement.

Questions? Contact an Underwriter.