Bulletin: MU000053

Date:
October 11, 2004
To:
All Issuing Offices except in Florida, New Mexico, Oregon, and Texas
RE:
New ALTA Endorsements 20 and 21

Dear Associates:

The American Land Title Association has recently adopted a new First Loss-Multiple Parcel Transactions Endorsement (ALTA 20) and Creditors' Rights Endorsement (ALTA 21). 

We are filing these forms and applicable rates where filing is required.

The ALTA Endorsement 20 (First Loss-Multiple Parcel Transactions) is effective if the Collateral (any real and personal property that secures the loan) includes at least two parcels of land.  This endorsement acknowledges that the title insurer will not require maturity of the Indebtedness, pursuit of remedies against any of the Collateral, or pursuit of its remedies against any guaranty, bond or insurance policy. 

The ALTA Endorsement 21 (Creditors' Rights) insures against avoidance or a court order providing another remedy based on voidability of the conveyance or mortgage because of a fraudulent transfer or preference.  The endorsement does not simply delete the creditors' rights exclusion.

Our overview and guidelines appear following each form in the Exhibits attached.

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:
3.84 Creditors' Rights
Exceptions Manual:
None
Forms:
ALTA Endorsement 20 (First Loss-Multiple Parcel Transactions)
 
ALTA Endorsement 21 (Creditors' Rights)