Form 10.3 Collateral Assignment and Date Down COLLATERAL ASSIGNMENT AND DATE DOWN – FORM 10.3 The ALTA 10.3 Endorsement (Collateral Assignment and Date Down) provides coverage to a collateral assignee, addressing risks related to the assignment of a portion of the lien of the insured mortgage as collateral for a debt. It insures against losses due to failures in assigning the lien, unpaid taxes or assessments, defects or encumbrances recorded in the public records, federal tax liens, pending bankruptcy proceedings, or unauthorized modifications, releases, or discharges of the insured mortgage, subject to stated exceptions. Additionally, it requires proper endorsement and delivery of secured notes or control over transferable records at the date of endorsement. The endorsement excludes coverage for claims related to fraudulent, voidable, or preferential transfers under creditors’ rights laws. Coverage is capped at a specified amount, and payments reduce the total insurance under the policy. It also allows the insurer to subrogate rights after claim settlements and to interplead funds in cases of conflicting claims. ALTA Endorsement — Form 10.3 (Collateral Assignment and Date Down – 04/02/2024) ALTA ENDORSEMENTS - 86 - SAMPLES AND DESCRIPTIONS
RkJQdWJsaXNoZXIy ODI0NDE4