- April 24, 2000
- All Issuing Offices
- Bankruptcy Court Orders
The United States Bankruptcy Rules were recently changed to provide that certain orders are not effective until 10 days after "entry" (the date noted) on the docket, unless the bankruptcy court orders otherwise. This change allows a party, such as a bankruptcy creditor, the necessary time to get another bankruptcy court ruling in the bankruptcy case to "stay" or postpone the order (such as an order of sale) for additional time during an appeal.
You should not rely on the following types of bankruptcy court orders until 10 days after the date the order is entered on the docket, unless the court order says that the stay of its order is shortened or will not apply. Those orders are:
1.An order granting a motion for relief from the automatic stay. [Bankruptcy
2.An order confirming a Chapter 9 (Municipality) or Chapter 11 (Reorganization) plan. [Bankruptcy Rule 3020(e)];
3.An order authorizing the use, sale, or lease of property. [Bankruptcy Rule 6004(g)]; and,
4.An order authorizing the trustee or debtor in possession to assign a contract or lease. [Bankruptcy Rule 6006(d)].
You should comply with our other requirements set forth in the Underwriting Manual on Virtual Underwriter for bankruptcy court orders and you should be satisfied that the court order is final and nonappealable.
You should also comply with any requirements of state law. For example, California
Civil Code 2924g(d) imposes an additional waiting period of 7 days after the
effective date of the termination of the automatic stay before a foreclosure
can occur in that state, unless the bankruptcy court order lifting the stay
explicitly directs the conduct of the stay within the 7-day period.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 2.04 Bankruptcy
- Exceptions Manual: