TIRSA Endorsements

Revolving Credit (RCE-2)

Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages Which Secure a Maximum Principal Indebtedness of Less Than $3,000,000

Description
Assures that a credit line mortgage will not, except as to matters noted in each endorsement, lose lien priority as loan proceeds are advanced and readvanced, so long as the insured lender has no actual knowledge of the sale or transfer of the property and there has been no event of default.

RCE-1 and RCE-3 afford protection against mechanics liens. RCE-1, RCE-2 and RCE-3 insure against mortgage tax being imposed after the aggregate amount of advances exceeds the face amount of the mortgage.
 
Requirements
Compliance with Tax Law Section 253-b and Real Property Law Section 281. To issue RCE-1, and to comply with the Tax Law, the mortgage must encumber a one-to-six family, owner-occupied residential property. To issue RCE-3, the mortgage must be for a term of no more than three years and not be a building loan mortgage (Loan Policy).
 
Premium

10% of the unreduced mortgage premium to issue RCE-1, RCE-2 or RCE-4. 20% of the unreduced mortgage premium to issue RCE-3.

 
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