What is the Commercial Lender Group Endorsement?

07/17/2024 11:08 AM Mark Goodman

There are a wide range of endorsements to fit the unique needs of any commercial title insurance policy. Each of these endorsements has its own benefits, drawbacks, and uses. One such endorsement is the commercial lender group endorsement. In this article, we are going to talk about the benefits of the commercial lender group endorsement and discuss when it can be effectively put to use in a commercial title insurance policy.

Commercial Lender Group Endorsement (ALTA 42-06)

The commercial lender group endorsement is used when a group of lenders participates in a single loan. It protects against loss caused by the invalidity, unenforceability, or loss of priority of the loan because of the transfers of a portion of the indebtedness by the various participants.

The commercial lender group endorsement is available when underwriting owner’s title insurance policies. It is not available when underwriting a lender’s title policy.

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