- April 13, 2004
- All Issuing Offices in New Jersey
- Substitute Mezzanine Financing Endorsement
Attached is a copy of the new Form NJ 5-77 Mezzanine Financing Endorsement (ALTA 16), which is approved for use beginning March 8, 2004. This form replaces existing Form 5-69, Mezzanine Financing Endorsement, and all stocks of Form 5-69 should be discarded. This endorsement may only be issued in conjunction with an owner's policy of insurance.
The mezzanine financing endorsement covers certain types of financing which are not actually secured by a real estate mortgage. The endorsement also waives certain defenses for the mezzanine lender. This form continues to be a high risk endorsement requiring approval of the State Office prior to issuance.
The charge for this endorsement remains at 30% of the applicable underwriting charge for the underlying owner's policy, whenever issued, with a minimum charge of $500.00.
Attached are the following pages to be substituted into your Rate and Form Manual:
Add Pages 243 through 244
Substitute Pages 231 and 232
Please call the State office if you have any questions, and note that revised Rate and Form Manuals will be issued shortly.
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.