- April 13, 2004
- All Issuing Offices in New Jersey
- New Future Advances Endorsements
Attached are copies of the new Form NJ 5-71 Future Advances - Priority (ALTA 14), Form NJ 5-72 Future Advances - Knowledge (ALTA 14.1) and Form NJ 5-73 Future Advances - Letter of Credit (ALTA 14.2) which are approved for use beginning March 8, 2004.
The forms should be issued when requested under the following circumstances:
Form NJ 5-71 Future Advances - Priority (ALTA 14) insures the continued priority of an advance over liens or encumbrances made after the date of the policy but prior to the date of the advance.
Form NJ 5-72 Future Advances - Knowledge (ALTA 14.1) provides the same coverage as ALTA 14, but does not cover the loss of priority of an advance made after the insured has knowledge of a lien, encumbrance or other matter made after the date of the policy but prior to the date of the advance.
Form NJ 5-73 Future Advances - Letter of Credit (ATA 14.2) provides the same coverage as ALTA 15 and should be used to insure a loan where the indebtedness secured by the insured mortgage is in the form of a letter of credit, surety agreement or reimbursement agreement, and future advances are to be made.
The charge for each of these endorsements is $50 per file, whether both the lender and applicant request the form or only one does.
Attached are the following pages to be substituted into your Rate and Form Manual:
Add Pages 234 through 239
Substitute Page 92
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.
- Bulletins Replaced:
- Related Bulletins:
- MU000049 New ALTA Forms
- Exceptions Manual: