201603.16
0

First Loss Endorsement

Modifies the terms and conditions of the Loan Policy regarding the criteria for how loss is determined under the policy. Specifically, the endorsement provides that a loss will be recognized whenever a title defect materially impairs the value of the collateral without the requiring maturity of the indebtedness by acceleration of the debt and without requiring the lender pursue its remedies against collateral. Without the endorsement the lender would normally be required to foreclose or pursue other remedies to prove this loss before being able to make a claim.