SOUTHERN TITLE INSURANCE CORPORATION

SHORT FORM RESIDENTIAL

LOAN POLICY - ONE TO FOUR FAMILY

SCHEDULES A & B

SCHEDULE A

File Number:    SAMPLE                          Mortgage Amount: SAMPLE                         Date of Policy: SAMPLE 

Loan Number:   SAMPLE 

Policy Number: SAMPLE                          Mortgage Date:   SAMPLE                          Amount of Insurance $ SAMPLE 

Name of Insured:    SAMPLE 

Name of Borrower(s):    SAMPLE 

Property Address:    SAMPLE 

County and State:    SAMPLE 

   The estate or interest in the land identified in this Schedule A and which is encumbered by the insured mortgage is fee simple and is at Date of Policy vested in the borrower(s)  shown in the insured mortgage and named above.

   The land referred to in this policy is described as set forth in the insured mortgage and is identified as the property address shown above.

   This policy consists of one page, including the reverse side hereof, unless an addendum is attached and indicated below:

________    Addendum Attached

________    No Addendum Attached

The ALTA endorsements indicated below are incorporated herein:

________    ENDORSEMENT 4 (Condominium) or

________    ENDORSEMENT 4.1

________    ENDORSEMENT 5 (Planned Housing Unit) or

________    ENDORSEMENT 5.1

________    ENDORSEMENT 6 (Variable Rate)

________    ENDORSEMENT 6.2 (Variable Rate - Negative Amortization)

________    ENDORSEMENT 7 (Manufactured Housing)

________    ENDORSEMENT 8.1 (Environmental Protection Lien) referring to the following statute(s): NONE

        IN WITNESS WHEREOF, the Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers as of the Date of Policy shown above, the effective date of this policy.

Issued at  SAMPLE                          SOUTHERN TITLE INSURANCE CORPORATION

COUNTERSIGNED:                                 by:         SAMPLE      President

                                                                   attest:     SAMPLE       Secretary

        SAMPLE        

Authorized Officer or Agent

ALTA SHORT FORM RESIDENTIAL LOAN POLICY

REVISED 10/7/92

            SUBJECT TO THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B BELOW, AND ANY ADDENDUM ATTACHED HERETO, SOUTHERN TITLE INSURANCE CORPORATION, A VIRGINIA CORPORATION, HEREIN CALLED THE ‘COMPANY,’ HEREBY INSURES THE INSURED IN ACCORDANCE WITH AND SUBJECT TO THE TERMS, EXCLUSIONS, CONDITIONS AND STIPULATIONS SET FORTH IN THE AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92), ALL OF WHICH ARE INCORPORATED HEREIN.  ALL REFERENCES TO SCHEDULES A AND B SHALL REFER TO SCHEDULES A AND B OF THIS POLICY.

SCHEDULE B

EXCEPTIONS FROM COVERAGE AND

AFFIRMATIVE ASSURANCES

            This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of the matters set forth below, except to the extent that the Company does insure in accordance with and subject to its terms against loss or damage which the insured shall sustain by reason of any inaccuracies in the affirmative assurances set forth below, except as limited in any addendum attached hereto:

1.    Those taxes and special assessments which become due and payable subsequent to Date of Policy.

2.    Covenants, conditions and restrictions, if any, appearing in the public records.  This policy insures that the same have not be violated, except that such affirmative assurance does not extend to covenants, conditions and restrictions relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not referenced in any addendum attached hereto.  Further, this policy insures that future violation of any covenants, conditions and restrictions appearing in the public records, including any relating  to environmental protection, will not result in a forfeiture or reversion of title and that there are no provisions therein under which the lien of the insured mortgage can be extinguished, subordinated or impaired.

3.    Any easements or servitudes appearing in the public records.  This policy insures that none of the improvements encroach upon the easements and that any use of the easements for the purposes granted or reserved will not interfere with or damage the improvements, including lawns, shrubbery and trees.

4.    Any lease, grant, exception or reservation of minerals or mineral rights appearing in the public records.  This policy insures that the use of the land for residential one-to-four family dwelling purposes is not, and will not be, affected or impaired by reason of any lease, grant, exception or reservation of minerals or mineral rights appearing in the public records and this policy insures against damage to existing improvements, including lawns, shrubbery and trees, resulting from the future exercise of any right to use the surface of the land for the extraction or development of the minerals or mineral rights so leased, granted, excepted or reserved.  Nothing herein shall insure against loss or damage resulting from subsidence.

5.    This policy insures against loss or damage by reason of any violation, variation, encroachment or adverse circumstance affecting the title that would have been disclosed by an accurate survey.  The term “encroachment” includes encroachments of existing improvements located on the land onto adjoining land, and encroachments onto the land of existing improvements located on adjoining land.

ALTA SHORT FORM RESIDENTIAL LOAN POLICY

REVISED 10/7/92