Bulletin: NY000019

Date:
January 09, 1991
To:
All Underwritten Companies
RE:
Construction - A REMINDER

Dear Associates:

In past years it has been the policy of the title industry not to insure against Mechanic Liens where priority has been lost due to the nature of the recording statute or where a lien from paid bills for labor or materials could supersede the lien of the construction lender. Recently, many underwriters including Stewart Title Insurance Company have paid losses resulting from mechanic's and materialman's liens obtaining priority over insured construction loans. Accordingly, in all cases where there is lost priority or when mechanic's liens have obtained statutorily or judicially determined priority over the proposed insured construction loan you must obtain written prior approval to insure against these liens from our Underwriting Department.

In the event you have any questions concerning the above or if I could be of further assistance with regard to same, please do not hesitate to contact me at your earliest convenience.

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:
12.12 Mechanic's Liens
Exceptions Manual:
NY Mechanic's Liens
Forms:
None