97 ALTA LOAN POLICY OF TITLE INSURANCE CHICAGO TITLE NCS DC | MD CHICAGO TITLE INSURANCE COMPANY LOAN POLICY NO. SampleDCACC Copyright American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. ALTA Loan Policy of Title Insurance w-DC Mod (07/01/2021) Printed: 11.10.23 @ 05:29 PM Page 2 DC-CT-FA61-02100.141018-SPS-72511-1-23-SampleDCACC 9. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. Covered Risk 9 includes, but is not limited to, insurance against loss caused by: a. forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; b. the failure of a person or Entity to have authorized a transfer or conveyance; c. the Insured Mortgage not being properly authorized, created, executed, witnessed, sealed, acknowledged, notarized (including by remote online notarization), or delivered; d. a failure to perform those acts necessary to create an Insured Mortgage by electronic means authorized by law; e. a document having been executed under a falsified, expired, or otherwise invalid power of attorney; f. the Insured Mortgage not having been properly filed, recorded, or indexed in the Public Records, including the failure to have performed those acts by electronic means authorized by law; g. a defective judicial or administrative proceeding; or h. invalidity or unenforceability of the lien of the Insured Mortgage as a result of the repudiation of an electronic signature by a person that executed the Insured Mortgage because the electronic signature on the Insured Mortgage was not valid under applicable electronic transactions law. 10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance on the Title as security for the following components of the Indebtedness: a. the amount of the principal disbursed as of the Date of Policy; b. the interest on the obligation secured by the Insured Mortgage; c. the reasonable expense of foreclosure; d. amounts advanced for insurance premiums by the Insured before the acquisition of the estate or interest in the Title; and e. the following amounts advanced by the Insured before the acquisition of the estate or interest in the Title to protect the priority of the lien of the Insured Mortgage: i. real estate taxes and assessments imposed by a governmental taxing authority; and ii. regular, periodic assessments by a property owners' association. 11. The lack of priority of the lien of the Insured Mortgage upon the Title: a. as security for each advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for service, labor, material, or equipment arising from construction of an improvement or work related to the Land when the improvement or work is: i. contracted for or commenced on or before the Date of Policy; or ii. contracted for, commenced, or continued after the Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on the Date of Policy to advance; and b. over the lien of any assessments for street improvements under construction or completed at the Date of Policy. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 13. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title, or the effect of a court order providing an alternative remedy: a. resulting from the avoidance, in whole or in part, of any transfer of all or any part of the Title to the Land or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a: i. fraudulent conveyance, fraudulent transfer, or preferential transfer under federal bankruptcy, state insolvency, or similar state or federal creditors’ rights law; or ii. voidable transfer under the Uniform Voidable Transactions Act; or b. because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar state or federal creditors’ rights law by reason of the failure: i. to timely record the Insured Mortgage in the Public Records after execution and delivery of the Insured Mortgage to the Insured; or ii. of the recording of the Insured Mortgage in the Public Records to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 14. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 13 that has been created or attached or has been filed or recorded in the Public Records subsequent to the Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. Chicago Title NCS DC l MD Page 121
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