Form 10.2 Collateral Assignment COLLATERAL ASSIGNMENT – FORM 10.2 The ALTA 10.2 Endorsement (Collateral Assignment) provides coverage to a collateral assignee by ensuring the proper assignment of a portion of the lien of the insured mortgage as collateral for a debt. It insures against loss or damage arising from failures such as the improper assignment of the lien or unauthorized modifications, reconveyances, subordinations, releases, or discharges of the insured mortgage unless exceptions are expressly stated. The endorsement excludes claims related to the transaction creating the collateral assignment under laws addressing fraudulent transfers or preferential transfers. It also stipulates enforceability conditions, including properly endorsing and delivering secured notes or controlling transferable records. Coverage is capped at the specified amount, with payments reducing the total insurance amount under the policy. The endorsement also provides subrogation rights to the insurer after claim payments. ALTA Endorsement — Form 10.2 (Collateral Assignment – 04/02/2024) ALTA ENDORSEMENTS - 82 - SAMPLES AND DESCRIPTIONS
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