Security Title Endorsement Guide

AGGREGATION (TIE-IN) ALTA 12-06 (04-02-13) and 12.1-06 (04-12-13)

Mortgages covering many parcels in different recording districts or jurisdictions may each be

recorded for the full amount of the secured indebtedness, or the allocated collateral value of each

site, or a combination of full and allocated values.

The allocated amount is often used in states which impose a mortgage tax. In any case, the

lender views the transaction as one debt and wants insurance coverage for the total amount of

the secured indebtedness. Instead of combining all of the parcels into one large loan policy, the

aggregation endorsement allows an insurer to issue a number of policies for lesser amounts but

to tie the policies together so that the Insured can aggregate the coverage and take advantage of

any increases in the value of a particular parcel should there be a loss. Form 12-06 can be used

for aggregating policies on sites all located in a single state or sites located in multiple states

none of which have state statutory limitations on the amount which can be insured. Form 12.1-

06 is intended to be used for aggregating policies in multiple states one or more of which have

state statutory limitations on the amount which can be insured.

This endorsement changes the provisions of Conditions 8(a)(i) of the ALTA Loan Policy so that

the Amount of Insurance available to cover a loss is the aggregate of the Amount of Insurance

available under the policy to which this endorsement is attached plus the Amounts of Insurance

available under the other policies identified in this endorsement. Effective April 2, 2013 Form 12-

06 was modified by adding new paragraphs which change the provisions of Sections 7(a)(i), 8(a),

8(b), 10 of the Conditions of the ALTA Loan Policy. New Form 12.1-06 also contains the new

paragraphs. These new paragraphs clarify the effect of the endorsement on the options of the

Company under the policy in the event of a claim and the extent of the Company’s liability.

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