Where are matters subordinate to the lien of the insured mortgage shown in a loan policy?

In a loan policy of title insurance, matters that are subordinate to the lien of the insured mortgage are specifically listed in Schedule B-II. This schedule is dedicated to exceptions from coverage, which includes any matters, such as liens, easements, or restrictions, that could affect the title and are not covered by the policy. By identifying these subordinate matters, lenders gain clarity on potential claims or encumbrances that might take precedence over their mortgage.

Understanding the structure of the title insurance policy is essential. Schedule A generally includes the basic information about the property and insured parties, while Schedule C focuses on the exclusions and any outstanding items that do not provide coverage, typically relating to claims or potential claims. Schedule B-I severs from that focus, detailing those specific matters that could impact the policy but are not defined as subordinate. Thus, the reason Schedule B-II is the correct answer is that it comprehensively addresses those entities or claims that could be asserted against the title and clarifies their subordinate status to the insured mortgage.