Bulletin: AK2017001

Date:
April 20, 2017
To:
All Alaska Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Rates and Forms update - Alaska

Dear Associates:

The Alaska Division of Insurance has recently approved a new Stewart Title rate and form filing. The new rates became effective March 31, 2017. The changes are summarized below.

Rate Manual

The rate manual submitted was designed to be most competitive with other major title insurance underwriters found operating in Alaska. All of the Basic Rates found on pages six and seven of the manual remain unchanged from the previous rate manual. However, the new manual includes charges for the latest endorsements that have been filed for use in Alaska and modifications for clarification and simplification:

Part I General Provisions

1)  1.2 Definitions: Clarified the definitions of Standard Coverage Owners Policy and Standard Coverage Loan Policy.

2)  1.3 Computation of Rates: Clarified the rounding of rates to the next whole dollar.

3)  1.7 Additional Chain or Parcel Charges: Clarified the applicable rates that may apply to include “or the cost to obtain the title information”.

Part II Owners and Loan Policies

1)  2.5 Standard or Extended Coverage Loan Policy (or policies) concurrent with Extended Coverage Loan Policy: Section was amended to include Extended Coverage Loan Policy(s) issued concurrently with Extended Coverage Loan Policy and the applicable rate.

2)  2.9 Mortgage Policy Insuring Extension, Modification, or Assignment of Insured Mortgage: Section was changed to include Assignments of Insured to clarify the rate calculation.

3)  2.10 ALTA Residential Limited Coverage Junior Loan: Revised to show new recommended supplemental endorsements JR1 and JR2.

4)  2.12 ALTA Residential Limited Coverage Mortgage Modification: Clarified the purpose, rate, and conditions to issue.

Part III Endorsements

This has been revised to add rates for the latest endorsements now available in Alaska and to adjust existing endorsement rates.

Forms

The following details the new approved forms and endorsements:

ALTA Residential Limited Coverage Junior Loan Policy (08/01/12) - The ALTA Residential Limited Coverage Junior Loan Policy includes the Insuring Provisions, Exclusions from Coverage, Conditions and Schedule. The ALTA Residential Limited Coverage Junior Loan Policy insures against loss or damage incurred by reason of: (1) the Grantee not being the named grantee on the last recorded deed; (2) the Land not being the same as the land described in the last recorded deed; (3) any Monetary Liens recorded in the Public Records; and (4) any ad valorem taxes or assessments that appear in the tax records. This policy does not insure the validity of the insured's mortgage and it does not insure that the Grantee (who will generally be the mortgagor) owns the land. It does provide defense costs as stated and does insure a later owner of the debt secured by the insured's mortgage. This form is issued before the Junior Mortgage is executed; it is similar to a commitment to insure.

ALTA Endorsement JR 1 (08-01-12)  - This form is a continuation endorsement to the ALTA Residential Limited Coverage Junior Loan Policy. It is generally requested at the time the Insured’s mortgage is executed. It will show intervening liens or deeds, if any, recorded after the Policy and it will show the Insured’s mortgage.

ALTA Endorsement JR 2 (Future Advance) (08-01-12)  - This form endorses the ALTA Residential Limited Coverage Junior Loan Policy to provide insurance as to revolving credit and variable rate provisions in the insured’s mortgage.

ALTA Short Form Residential Loan Policy (12/03/12) - The ALTA Short Form Residential Loan Policy insures the lender making a mortgage loan on a one-to four family residence or condominium unit. The Policy is an abbreviated short form version of the current ALTA Loan Policy, which is designed to be delivered to the lender at closing. The policy addendum can be used to set forth additional exceptions if needed.

ALTA Homeowner’s Policy of Title Insurance (12-02-13) - The ALTA Homeowner’s Policy of Title Insurance (12/02/13) is designed to incorporate the changes of the 2006 Owner’s Policy and improve the title insurance coverage given to the insured. The only changes in the 2013 Policy include:

This policy clarifies coverage relating to trusts or estate planning entities within CONDITION 2.b. (3), and the following exclusions from coverage: (8) Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence; and (9) Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances was added.

ALTA Short Form Residential Limited Coverage Junior Loan Policy with addendum (04/02/13)  -The ALTA Short Form Residential Limited Coverage Junior Loan Policy is the abbreviated short form version of the ALTA Residential Limited Coverage Junior Loan Policy (08-01-12) already filed and which includes the Insuring Provisions, Exclusions from Coverage, Conditions and Schedule. The ALTA Residential Limited Coverage Junior Loan Policy insures against loss or damage incurred by reason of: (1) the Grantee not being the named grantee on the last recorded deed; (2) the Land not being the same as the land described in the last recorded deed; (3) any Monetary Liens recorded in the Public Records; and (4) any ad valorem taxes or assessments that appear in the tax records. This policy does not insure the validity of the insured's mortgage and it does not insure that the Grantee (who will generally be the mortgagor) owns the land. It does provide defense costs as stated and does insure a later owner of the debt secured by the insured's mortgage. This form is issued before the Junior Mortgage is executed; it is similar to a commitment to insure. The addendum to the Short Form Residential Limited Coverage Loan Policy would be attached to the policy to show any special exceptions on a case by case basis, after the examination of title, such as liens or mortgages or deeds of record. These specialized items could change from each piece of property so the addendum allows us to refer to these title conditions as they relate to each specific property. 

CLTA Litigation Guarantee (6-5-14)  - The Litigation Guarantee is a product which gives certain assurances to one contemplating judicial action. A Litigation Guarantee is designed for issuance to an attorney representing the plaintiff in an action affecting land. Typical litigation includes actions to quiet title, foreclosure of liens, condemnation and declaratory relief. A decree in any such action is binding only of the parties named as defendants. Therefore, it is essential that the attorney determine the existence and identity of all the parties that must be sued in order to achieve the purpose of the litigation.  The Guarantee sets forth in Schedule A, paragraph 5 the name of the current record owner of the land that is the subject of the action. The Guarantee also sets forth in Schedule B all defects, liens and encumbrances of record which affect title.

ALTA Commitment for Title Insurance (8-1-16)  - The Commitment for Title Insurance consolidates the ALTA Commitment Form (6-17-06) and the ALTA Plain Language Commitment Form (6-17-06). The ALTA Commitment contains the following notable features:

* adds a Notice at the top of the Commitment reiterating that the Commitment is an offer to issue a title insurance policy or policies, and is not an abstract or opinion of title, and limits the Company’s potential liability to the proposed insured; 

* clarifies the Company’s right to amend the Commitment at any time and the limitations on the Company’s liability relating to an amendment (Commitment Conditions 4 and 5);

* improves readability by adding and revising headings and reordering certain Commitment Conditions; 

adds certain definitions consistent with the ALTA Owner’s Policy 2006 and the ALTA Loan Policy 2006 (Commitment Conditions 1); 

* clarifies that the deletion or modification of any Schedule B, Part II - Exception does not constitute an agreement or obligation to provide coverage for that item (Commitment Conditions 6(d)); 

* adds a new section reiterating that an issuing agent is the Company’s agent only for the limited purpose of issuing title insurance commitments and policies. Also states that the issuing agent is not the Company’s agent for the purpose of providing closing or settlement services (Commitment Conditions 7); 

* adds a new section reiterating that, if a proforma policy is provided to a proposed insured, it does not reflect the current status of title and does not constitute a commitment to insure (Commitment Conditions 8); 

* adds an optional section preceding Schedule A to insert Transaction Identification Data (Issuing Agent, Issuing Office, ALTA Universal ID, Loan ID Number, Commitment Number, Issuing Office File Number, Property Address, Revision Number), all for reference only. Liability for this data is also limited by Commitment Condition 5(e); 

* adds a notice to Schedule B, Part II - Exceptions stating that the Commitment does not republish any covenant, condition, restriction, or limitation contained in any document to the extent that the covenant, condition, restriction, or limitation violates state or federal law based on race, color, religion, sex, sexual orientation, gender identity, handicap, familial status, or national origin; and 

* adds an introductory clause to Schedule B, Part II - Exceptions stating that the Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A.

Endorsements:

ALTA Endorsement 29-06 Interest Rate Swap Endorsement - Direct Obligation - This new endorsement insures the validity, priority, and enforceability of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation. This endorsement will only be issued for Commercial transactions. 

ALTA Endorsement 29.1-06 Interest Rate Swap Endorsement - Additional Interest - This new endorsement insures the validity, priority, and enforceability of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation that is considered additional interest. This endorsement will only be issued for Commercial transactions.

ALTA Endorsement 3.2-06 Zoning - Land Under Development (04-02-12) - This endorsement insures against loss or damage in the event that the Land does not meet the zoning classification set forth in the endorsement, or zoning ordinances or amendments have been violated. 

ALTA Endorsement 9-06 Restrictions, Encroachments, Minerals - Loan Policy (4-2-12) - This endorsement to the Loan policy insures against violations of restrictions, encroachments over easements, building lines or property lines, and damage by reason of mineral or other subsurface substance development.

ALTA Endorsement 9.1-06 Covenants, Conditions and Restrictions - Unimproved Land - Owner’s Policy (4/2/12) - This endorsement to the Owner's policy insures against violations of covenants and notices of violations of covenants relating to environmental protection.  It is issued on unimproved land. 

ALTA Endorsement 9.2-06 Covenants, Conditions and Restrictions-Improved Land - Owner’s Policy (4/2/12) - This endorsement to the Owner's policy insures against violations of covenants and notices of violations of covenants relating to environmental protection. It is issued on improved land.

ALTA 9.3-06 Covenants, Conditions and Restrictions - Loan Policy (4/2/12) - This endorsement to the Loan Policy insures against violations of covenants and notices of violations of covenants relating to environmental protection.  It is issued on improved land.

ALTA Endorsement 9.6-06 Private Rights - Loan Policy (04-02-13) - This endorsement to a Loan policy insures against enforcement of a Private Right in a Covenant affecting the Title at Date of Policy if it: (a) results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; or (b) causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness.

ALTA Endorsement 9.6.1-06 Private Rights - Current Assessments - Loan Policy (04-02-15) - This new endorsement insures against loss or damage sustained by the Insured under the policy if enforcement of a Private Right in a Covenant affecting the Title at Date of Policy: (a) Results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; or (b) Causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness.

ALTA Endorsement 9.7-06 Restrictions, Encroachments, Minerals - Land Under Development - Loan Policy (04-02-12) - This endorsement insures against loss or damage sustained by reason of: (a) a violation of a covenant; (b) a violation of a covenant by an Improvement on the Land or a Future Improvement; (c) enforced removal of an Improvement or Future Improvement on the Land as a result of a violation of a building setback line shown on a plat of subdivision; (d) a notice of a violation of an enforceable covenant related to environmental protection. This endorsement also insures against loss or damage sustained by reason of an encroachment or damage to an improvement located on the Land. This endorsement also insures against violations of restrictions, encroachments over easements, building lines or property lines, and damage by reason of mineral development.

ALTA Endorsement 9.8-06 Covenants Conditions and Restrictions - Land Under Development - Owner’s Policy (04-02-12) - This endorsement insures against loss or damage sustained by reason of: (a) a violation of a covenant by an Improvement on the Land or a Future Improvement; (b) enforced removal of an Improvement or Future Improvement on the Land as a result of a violation of a building setback line shown on a plat of subdivision; (c) a notice of a violation of an enforceable covenant related to environmental protection.

ALTA Endorsement 9.9-06 Private Right - Owner’s Policy (04-02-13) - This endorsement to an Owner’s Policy insures against enforcement of a Private Right if a Covenant affecting the Title at Date of Policy based on a transfer of Title on or before Date of Policy causes a loss of the Insured’s Title.

ALTA Endorsement 9.10-06 Restrictions, Encroachment, Minerals - Current Violations - Loan Policy (04-02-13) - This endorsement to a Loan Policy insures against violations of covenants, encroachments on the Land from improvements, and damage to improvements by reason of mineral development.

ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amounts of Insurance) (12-02-13)  - This endorsement insures against loss or damage sustained by the Insured by reason of: (a) The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title as a result of the Modification; (b) The lack of priority of the lien of the Insured Mortgage over defects in or liens or encumbrances on the Title, (with exceptions, if any); (c) The failure of matters to be subordinate to the lien of the Insured Mortgage, (matters to be insured as subordinate should be specified, if any).

ALTA Endorsement 12-06 Aggregation - Loan Policy (04-02-13) - This endorsement is also called the "tie-in," "cluster," or "spreader" endorsement. It is issued with a Loan Policy in many states on commercial transactions. The Endorsement aggregates the Amount of Insurance on each Loan Policy listed in the endorsement. This endorsement to multiple Loan Policies results in one liability for all policies; it creates the same result as one Policy covering multiple sites. This endorsement is not designed to be issued with an Owner's Policy.

ALTA Endorsement 12.1-06 Aggregation - State Limits - Loan Policy (04-02-13) - This Aggregation Endorsement includes a “State Limit” in section 3b, which provides that if the Land is located in one of the states identified within the subsection, then the Aggregate Amount of Insurance is restricted. Additionally, the extent of liability of the Company for loss or damage under a policy containing this endorsement shall not exceed the Aggregate Amount of Insurance for the State where the Land is located. This endorsement is not designed to be issued with an Owner's Policy.

ALTA Endorsement 13-06 Leasehold - Owner’s (4/2/12) - This endorsement may be used with the ALTA Owner’s Policy 2006 that insures a leasehold estate and the Insured is the Lessee under a lease. This endorsement contains provisions as to the valuation of the estate or interest insured in computing loss or damage under the policy and additional items of loss covered.

ALTA Endorsement 13.1-06 Leasehold - Loan (4/2/12) - This endorsement may be used with ALTA Loan Policy 2006 that insures a loan secured by a leasehold estate. This endorsement contains provisions as to the valuation of the estate or interest insured in computing loss or damage under the policy and additional items of loss covered.

ALTA Endorsement 18.2-06 (Multiple Tax Parcel) 08-01-2016 - This new endorsement is based upon ALTA Endorsement 18.1-06 (Multiple Tax Parcel). Both ALTA Endorsement 18.1-06 and ALTA Endorsement 18.2-06 can be issued with Owner’s or Loan Policies. Both endorsements insure against loss or damage if the specified parcels described in the endorsement are not assessed for real estate taxes under the listed tax identification numbers or if those tax identification numbers include any additional land.

ALTA Endorsement 19.2-06 Contiguity - Specified Parcels (04-02-15) - This new endorsement insures against loss or damage sustained by the Insured by reason of there being any gaps, strips, or gores lying within or between [Parcels/Tracts] of the Land except as depicted on the survey.

ALTA Endorsement 28.1-06 (Encroachments - Boundaries and Easements (04-02-12) - This endorsement insures against loss or damage sustained by reason of: (a) An encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement; (b) An encroachment of any Improvement located on adjoining land onto the Land; (c) Enforced removal of any Improvement located on the Land as a result of an encroachment; or (d) Enforced removal of any Improvement located on the Land that encroaches onto adjoining land.

ALTA Endorsement 28.2-06 Encroachments - Boundaries and Easements - Described Improvements (04-02-13) - For the purposes of this endorsement, “Improvement” means each improvement on the Land or adjoining land at Date of Policy. This endorsement insures against loss or damage sustained by the Insured by reason of: (a) an encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless an exception in Schedule B of the policy identifies the encroachment; (b) an encroachment of any Improvement located on adjoining land onto the Land at Date of Policy, unless an exception in Schedule B of the policy identifies the encroachment; (c) enforced removal of any Improvement located on the Land as a result of an encroachment by the Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement; or (d) enforced removal of any Improvement located on the Land that encroaches onto adjoining land.

ALTA Endorsement 28.3-06 Encroachments - Boundaries and Easements - Described Improvements and Land Under Development (04-02-15) - This new endorsement insures against loss or damage sustained by the Insured by reason of: (a) Encroachment of any Improvement or Future Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement; (b) Encroachment of any Improvement located on adjoining land; (c) Enforced removal of any Improvement or Future Improvement located on the Land as a result of an encroachment by the Improvement or Future Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement or Future Improvement; or (d) Enforced removal of any Improvement or Future Improvement located on the Land that encroaches onto adjoining land.

ALTA Endorsement 30.1-06 Commercial Participation Interest (08-01-12) - This new endorsement insures as of Date of Policy against loss or damage by reason of (a) the invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions of the Insured Mortgage or Loan Documents containing a participation interest; (b) lack of priority of the lien of the Insured Mortgage at Date of Policy, securing (i) the unpaid principal balance of the loan and (ii) the interest on the loan, including the participation interest, if any, which lack of priority is caused by the provisions in the Loan Documents for payment or allocation to the Insured of any participation interest.

ALTA Endorsement 32.1-06 Construction Loan - Loss of Priority - Direct Payment (04-02-13) - This endorsement insures construction loan advances only to the extent that direct payment to the Mechanic's Lien claimant has been made by the Company or by the Insured with the Company's written approval. It does not insure against loss or damage by reason of any Mechanic’s Lien arising from services, labor, material or equipment: (a) furnished after Date of Coverage; or (b) to the extent that a Mechanic’s Lien claimant was not directly paid by the Company or by the Insured with the Company’s written approval.

ALTA Endorsement 32.2-06 Construction Loan - Loss of Priority - Insured’s Direct Payment (04-02-13) - This endorsement insures construction loan advances only to the extent that direct payment to the Mechanic’s Lien claimant has been made by the Insured or on the Insured’s behalf on or before Date of Coverage. It does not insure against loss or damage by reason of any mechanic’s lien arising from services, labor, material or equipment: (a) furnished after Date of Coverage; or (b) to the extent that the Mechanic’s Lien claimant was not directly paid by the Insured or on the Insured’s behalf. ALTA 32.2-06 does not require that the Company or its agent will be involved in disbursement of funds.

ALTA Endorsement 35-06 Minerals and Other Subsurface Substances - Buildings (04-02-12) - This endorsement insures against loss or damage sustained by reason of the enforced removal or alteration of any Improvement resulting from the future extraction or development of minerals or any other subsurface substances.

ALTA Endorsement 35.1-06 Minerals and Other Subsurface Substances - Improvements (04-02-12) -This endorsement insures against loss or damage sustained by reason of the enforced removal or alteration of any Improvement, resulting from the future extraction or development of minerals or any other subsurface substances. "Improvement" means each itemized improvement. 

ALTA Endorsement 35.2-06 Minerals and Other Subsurface Substances - Described Improvements (04-02-12) - This endorsement insures against loss or damage sustained by reason of the future enforced removal or alteration of any Improvement resulting from the extraction or development of minerals or any other subsurface substances. "Improvement" means each itemized improvement.

ALTA Endorsement 35.3-06 Minerals and Other Subsurface Substances - Land Under Development (04-02-12) - This endorsement insures against loss or damage sustained by reason of the future enforced removal or alteration of an Improvement or a Future Improvement, resulting from use of the surface of the Land for the extraction or development of minerals or any other subsurface substances.

ALTA Endorsement 36-06 Energy Project - Leasehold/Easement - Owner’s (04-02-12) - This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease or Easement (including relocation of improvements).

ALTA Endorsement 36.1-06 Energy Project - Leasehold/Easement - Loan (04-02-12) - This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease or Easement (including relocation of improvements).

ALTA Endorsement 36.2-06 Energy Project - Leasehold - Owner’s (04-02-12) - This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease (including relocation of improvements).

ALTA Endorsement 36.3-06 Energy Project - Leasehold - Loan (04-02-12) -This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease (including relocation of improvements).

ALTA Endorsement 36.4-06 Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Owner’s (04-02-12) - This endorsement insures against loss or damage sustained by the Insured by reason of: (a) A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement; (b) Enforced removal of any Electricity Facility or Severable Improvement as a result of a violation of a building setback line shown on a plat of subdivision; or (c) A notice of a violation of an enforceable Covenant relating to environmental protection, describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice.

ALTA Endorsement 36.5-06 Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Loan (04-02-12) - This endorsement insures against loss or damage sustained by reason of: (a) A violation of a Covenant that: divests, subordinates, or extinguishes, or results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; or causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness; (b) A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement; (c) Enforced removal of any Electricity Facility or Severable Improvement, as a result of a violation of a building setback line shown on a plat of subdivision; or (d) A notice of a violation of an enforceable Covenant relating to environmental protection, describing any part of the Land and referring to that Covenant, but only to the extent of the violation of the Covenant referred to in that notice.

ALTA Endorsement 36.6-06 Energy Project - Encroachments (04-02-12) - This endorsement insures against loss or damage sustained by reason of encroachments or enforced removal of any Electricity Facility or Severable Improvement, as a result of an encroachment [or] Damage to any Electricity Facility or Severable Improvement that is located on or encroaches onto that portion of the Land subject to an easement.

ALTA Endorsement 36.7-06 (Energy Project - Fee Estate - Owner’s Policy) (12-01-14) - This new endorsement is one of a series of endorsements designed specifically for energy projects (e.g., wind farms, solar farms, traditional electricity generating facilities, etc.). Such projects may include fee parcels, leaseholds, and/or easements. ALTA Endorsement 36.7-06 will apply to an Owner’s Policy and be the “counterpart” form to the existing 36-06 and 36.2-06 where fee estates are being insured.

ALTA Endorsement 36.8-06 (Energy Project - Fee Estate - Loan Policy) (12-01-14) - This new endorsement is one of a series of endorsements designed specifically for energy projects (e.g., wind farms, solar farms, traditional electricity generating facilities, etc.). Such projects may include fee parcels, leaseholds, and/or easements. ALTA Endorsement 36.8-06 will apply to a Loan Policy and represent the “counterpart” in the fee estate context to the existing 36.1-06 and 36.3-06 endorsements.

ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-03-12) - This endorsement insures against any defect in the assignment of rents of leases or any assignment of the lessor's interest in any lease or leases or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument referred to in Schedule B.

ALTA Endorsement 38-06 (Mortgage Tax) (12-03-12) - Upon payment of any deficiency in the Mortgage Tax, including interest and penalties, by the Insured, the Company insures against loss or damage sustained by the Insured by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or (b) the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax.

ALTA Endorsement 39-06 Policy Authentication (04-02-13) - This endorsement insures that the Company will not deny liability under the policy or any endorsements issued with the policy solely on the grounds that the policy or endorsements were issued electronically or lack signatures in accordance with the Conditions.

ALTA Endorsement 40-06 (Tax Credit - Owner's Policy) (04-02-14) - This new endorsement insures against a reduction in a Tax Credit to an Investor that is caused solely by a defect, lien, encumbrance, or other matter insured against by the policy. The Company has no liability to the Tax Credit Investor under this endorsement until its liability and the extent of a loss insured against by the policy have been definitely fixed in accordance with the Conditions; and the Tax Credit Investor establishes the reduction in the amount of a Tax Credit.

ALTA Endorsement 40.1-06 (Tax Credit - Defined Amount - Owner’s Policy) (04-02-14) - This new endorsement insures against loss or damage, not exceeding the Additional Amount of Insurance, sustained by the Tax Credit Investor by a reduction in a Tax Credit that is caused solely by a defect, lien, encumbrance or other matter insured against by this policy. The Company has no liability to the Tax Credit Investor under this endorsement until its liability and the extent of a loss insured against by the policy have been definitely fixed in accordance with the Conditions; and the Tax Credit Investor establishes the reduction in the amount of a Tax Credit.

ALTA Endorsement 41-06 (Water-Buildings) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

ALTA Endorsement 41.1-06 (Water-Improvements) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

ALTA Endorsement 41.2-06 (Water - Described Improvements) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

ALTA Endorsement 41.3-06 (Water - Land Under Development) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of an Improvement or a Future Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

ALTA Endorsement 42-06 (Commercial Lender Group) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of: (a) The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants; (b) Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

ALTA Endorsement 43-06 (Anti-Taint) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the loss of priority of the lien of the Insured Mortgage, as security for the amount of the Indebtedness advanced as the Term Loan, resulting from reductions and subsequent increases of the outstanding principal amount of the Indebtedness payable as the Revolving Credit Loan.

ALTA Endorsement 44-06 (Insured Mortgage Recording) (12-02-13) - This endorsement insures against loss or damage sustained by the Insured by reason of the failure of the Insured Mortgage to have been recorded in the Public Records as set forth in Section 3 of the Endorsement.

ALTA Endorsement 45-06 (Pari Passu Mortgage - Loan Policy) (12-01-14) - This new endorsement addresses the needs of lenders who are obtaining co-equal lien priority with other lenders relating to a specific parcel or parcels of real property collateral of a debtor. This type of transaction typically arises in the context of credit facility transactions where multiple lenders seek to obtain equal lien priority through separately recorded mortgages and an associated intercreditor agreement. The ALTA 45-06 endorsement insures the lender that the lien will not be invalid or unenforceable due solely to the provisions of the mortgage or intercreditor agreement providing for co-equal lien priority. The endorsement also insures against loss or damage if the insured mortgage does not have equal lien priority with the other pari passu lenders. Liability under the endorsement is conditioned upon the insured lender and the other pari passu lenders complying with the terms of the mortgages and intercreditor agreement and requires that all of the lenders involved simultaneously foreclose their respective mortgages. 

ALTA Endorsement 46-06 (Option) (8-1-15) - This new endorsement, subject to its terms, conditions and exclusions, insures against loss or damage sustained by the Insured by reason of A) any defect in the execution of the Option resulting from: i. forgery, incompetency, incapacity, or impersonation of the Optionor; ii. failure of the Option or to have authorized the Option; or iii. the Option not being properly signed, witnessed, sealed, acknowledged, notarized, or delivered by the Optionor; and B) any right to acquire an estate or interest in the Option Parcel granted to another person in a document recorded in the Public Records at Date of Policy.

As a reminder, other forms should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in Alaska should be used, unless approved by a Stewart underwriter. All AIM+ users are reminded to contact PropertyInfo to get the new rates implemented in your system. Users of other production software should contact the software provider to get the new rates implemented in your system.  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
ALTA Commitment for Title Insurance 6-17-06 Revised (08-01-16)
 
ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amount of Insurance) (12-02-13)
 
ALTA Endorsement 13-06 (Leasehold - Owner's) Revised 04-02-12
 
ALTA Endorsement 13.1-06 (Leasehold - Loan) Revised 04-02-12
 
ALTA Endorsement 19.2-06 (Contiguity - Specified Parcels) (04-02-15)
 
ALTA Endorsement 28.1-06 (Encroachments - Boundaries and Easements) (04-02-12)
 
ALTA Endorsement 28.2-06 (Encroachments - Boundaries and Easements - Described Improvements) (04-02-13)
 
ALTA Endorsement 28.3-06 (Encroachments - Boundaries and Easements - Land Under Development) 04-02-15 Technical Correction 12-01-16
 
ALTA Endorsement 3.2-06 (Zoning - Land Under Development) (04-02-12)
 
ALTA Endorsement 30.1-06 (Commercial Participation Interest) (08-01-12)
 
ALTA Endorsement 32.1-06 (Construction Loan - Loss of Priority - Direct Payment) (04-02-13)
 
ALTA Endorsement 32.2-06 (Construction Loan - Loss of Priority - Insured's Direct Payment) (04-02-13)
 
ALTA Endorsement 35-06 (Minerals and Other Subsurface Substances - Buildings) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.1-06 (Minerals and Other Subsurface Substances - Improvements) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.2-06 (Minerals and Other Subsurface Substances - Described Improvements) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.3-06 (Minerals and Other Subsurface Substances - Land Under Development) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 36-06 (Energy Project - Leasehold/Easement - Owner's) (04-02-12)
 
ALTA Endorsement 36.1-06 (Energy Project - Leasehold/Easement - Loan) (04-02-12)
 
ALTA Endorsement 36.2-06 (Energy Project - Leasehold - Owner's) (04-02-12)
 
ALTA Endorsement 36.3-06 (Energy Project - Leasehold - Loan) (04-02-12)
 
ALTA Endorsement 36.4-06 (Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Owner's) (04-02-12)
 
ALTA Endorsement 36.5-06 (Energy Project - Covenants, Conditions and Restrictions - Land Under Development - Loan) (04-02-12)
 
ALTA Endorsement 36.6-06 (Energy Project - Encroachments) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 36.7-06 (Energy Project - Fee Estate - Owner's Policy)
 
ALTA Endorsement 36.8-06 (Energy Project - Fee Estate - Loan Policy)
 
ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-03-12)
 
ALTA Endorsement 38-06 (Mortgage Tax) (12-03-12)
 
ALTA Endorsement 39-06 (Policy Authentication) (04-02-13)
 
ALTA Endorsement 40-06 (Tax Credit - Owner’s Policy) (04-02-14)
 
ALTA Endorsement 40.1-06 (Tax Credit - Defined Amount - Owner’s Policy) (04-02-14)
 
ALTA Endorsement 41-06 (Water - Buildings) (12-02-13)
 
ALTA Endorsement 41.1-06 (Water- Improvements) (12-02-13)
 
ALTA Endorsement 41.2-06 (Water - Described Improvements) (12-02-13)
 
ALTA Endorsement 41.3-06 (Water - Land Under Development) (12-02-13)
 
ALTA Endorsement 42-06 (Commercial Lender Group Endorsement) (12-02-13)
 
ALTA Endorsement 43-06 (Anti-Taint) (12-02-13)
 
ALTA Endorsement 44-06 (Insured Mortgage Recording - Loan) (12-02-13)
 
ALTA Endorsement 45-06 (Pari Passu Mortgage - Loan Policy)
 
ALTA Endorsement 46-06 (Option) 08-01-15
 
ALTA Endorsement 9-06 (Restrictions, Encroachments, Minerals - Loan Policy) Revised 04-02-12 Technical Correction 08-01-16
 
ALTA Endorsement 9.1-06 (Covenants, Conditions and Restrictions - Unimproved Land Owner's Policy) Revised 04-02-12
 
ALTA Endorsement 9.10-06 (Restrictions, Encroachments, Minerals - Current Violations - Loan Policy) (04-02-13) Technical Correction 08-01-16
 
ALTA Endorsement 9.2-06 (Covenants, Conditions and Restrictions - Improved Land Owner's Policy) Revised 04-02-12
 
ALTA Endorsement 9.3-06 (Covenants, Conditions and Restrictions - Loan Policy) Revised 04-02-12
 
ALTA Endorsement 9.6-06 (Private Rights - Loan Policy) (04-02-13)
 
ALTA Endorsement 9.6.1-06 (Private Rights - Current Assessments - Loan Policy) (04-02-15)
 
ALTA Endorsement 9.7-06 (Restrictions, Encroachments, Minerals - Land Under Development - Loan Policy) (04-02-12)
 
ALTA Endorsement 9.8-06 (Covenants Conditions and Restrictions - Land Under Development - Owner's Policy) (04-02-12)
 
ALTA Endorsement 9.9-06 (Private Rights - Owner's Policy) (04-02-13)
 
ALTA Endorsement JR1 Revised 08-01-12
 
ALTA Endorsement JR2 (Future Advance) Revised 08-01-12
 
ALTA Homeowner's Policy 2-3-10 (Revised 12-02-13)
 
ALTA Residential Limited Coverage Junior Loan Policy Revised 08-01-12
 
ALTA Short Form Residential Limited Coverage Junior Loan Policy (04-02-13)
 
ALTA Short Form Residential Loan Policy (12-03-12)
 
CLTA Litigation Guarantee 1