Bulletin: AK2012001

Date:
July 24, 2012
To:
All Alaska Issuing Offices
RE:
New Rate and Form Filing - Effective June 14, 2012

Dear Associates:

This Bulletin is sent to advise you of recently filed forms and revisions to the Stewart rate manual in the State of Alaska.   

Please find a summary of the new, revised and withdrawn forms, as follows: 

New Forms Filed: 

ALTA Endorsement 11.1-06 (Mortgage Modification with Subordination)
The ALTA Endorsement 11-06 was filed and approved in October of 2006.  In October of 2009 the American Land Title Association ("ALTA") created the 11.1-06 which provides the same coverage as the 11-06; however, it also contains an additional paragraph that affirmatively insures liens as subordinate matters.

ALTA Endorsement 29.1-06 (Interest Rate Swap Endorsement – Additional Interest)
This endorsement insures against (1) invalidity or unenforceability of the insured mortgage as security for the repayment of the Swap Obligation; (2) lack of priority of the lien of the insured mortgage as security for the repayment of the Swap Obligation.

ALTA Endorsement 29.2-06 (Interest Rate Swap Endorsement – Direct Obligation – Defined Amount)
This endorsement insures against loss or damage, not to exceed the Additional Amount of Insurance, by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation at Date of Endorsement.

AK ALTA Endorsement 29.3-06 (Interest Rate Swap Endorsement – Additional Interest – Defined Amount)
This endorsement insures against loss or damage, not to exceed the Additional Amount of Insurance, by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Additional Interest at Date of Endorsement.

AK ALTA Endorsement 30-06 (Shared Appreciation Mortgage)
This endorsement insures against the invalidity or loss of priority of the Insured Mortgage caused by provisions for shared appreciation.  This endorsement can be issued for loan policies covering one-to-four family residences.  A shared appreciation mortgage may be utilized in connection with loan workouts or other finance transactions.  This type of mortgage could secure payment on a portion of the appreciation in value of the land.

AK ALTA Endorsement 31-06 (Severable Improvements)
This new endorsement insures against covered loss with respect to property affixed to the land that does not constitute real property. This endorsement applies to commercial properties and insures not only specified loss resulting in the reduction in value of the insured's interest in any Severable Improvement, but also stated cost actually incurred in connection with the removal of any Severable Improvement. 

AK ALTA Endorsement 32-06 (Construction Loan – Loss of Priority)
This new endorsement provides stated insurance with respect to the validity or priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage.  

AK ALTA Endorsement 32.1-06 (Construction Loan – Loss of Priority – Direct Payment)
This new endorsement provides stated insurance with respect to the validity or priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage.

AK ALTA Endorsement 33-06 (Disbursement)
This new endorsement provides for a change to the Date of Coverage, but not the Date of Policy. This endorsement does not serve to change the dates on any endorsements and/or extended coverage.

AK ALTA Endorsement 34-06 (Identified Risk Coverage)
This endorsement insures against loss or damage sustained by the Insured by reason of: (a) A final order or decree enforcing the Identified Risk in favor of an adverse party; or (b) The release of a prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease, or lend as a result of the Identified Risk, but only if (i.) there is a contractual condition requiring the delivery of marketable title, and (ii.) neither the Company nor any other title insurance company is willing to insure over the Identified Risk with the same conditions as in this endorsement.

AK CLTA Endorsement 104.1-06 (Assignment of Mortgage)
This endorsement insures against loss or damage sustained by the Insured by reason of (a) The failure of the beneficial interest under the Insured Mortgage to have been transferred to said Insured by a valid assignment or assignments and (b) The existence of any reconveyance, either full or partial, of the Insured Mortgage, or any modification or subordination thereof, appearing in the Public Records.  This endorsement contains an exclusion for creditors’ rights claims.  It is only effective provided that, at the date of the endorsement, the note secured by the lien of the Insured Mortgage has been properly endorsed and delivered to the Assignee, or if the note is a transferable record, the Assignee has control of the note.

AK CLTA Endorsement 108.8-06 (Additional Advance)
This endorsement insures that title is vested in the maker of the promissory note at the date of the endorsement.  It also insures priority for the Insured Mortgage, including the additional advance, subject to items listed on Schedule B of the policy or listed in the endorsement.  It insures that there is no reconveyance, modification or subordination of the Insured Mortgage shown in the Public Records except for those items listed on the endorsement.  Finally, it increases the Amount of Insured by the amount of the additional advance.  This endorsement contains a creditors’ rights exclusion.

Revised Forms Filed:

ALTA Commitment 6/17/2006, ALTA Loan Policy 6/17/06, ALTA Owner’s Policy 6/17/06
The standard exceptions on these filed forms are being revised for consistency and applicability to general title issues in the state of Alaska.  The revised manual that is submitted also restates the revised standard exceptions.

ALTA Endorsement 3.1-06 (Zoning – Completed Structure)
This endorsement was revised on 10-22-09.  Paragraph 2 is re-structured and the language in 2(b) is modified slightly by changing "…the structure on the basis that, at Date of Policy…" to "…the structure, because, at Date of Policy…"

ALTA Endorsement 13-06 (Leasehold – Owners)
This endorsement modifies the prior ALTA Endorsement 13-06 and makes non-substantive changes to clarify coverage.

ALTA Endorsement 13.1-06 (Leasehold – Loan)
This endorsement modifies the prior ALTA Endorsement 13.1-06 and makes non-substantive changes to clarify coverage.

ALTA Endorsement 14-06 (Future Advance – Priority)
This endorsement modifies the prior ALTA Endorsement 14-06 and makes non-substantive changes to clarify coverage.  

ALTA Endorsement 14.1-06 (Future Advance – Knowledge)
This endorsement modifies the prior ALTA Endorsement 14.1-06 and makes non-substantive changes to clarify coverage. 

ALTA Endorsement 14.2-06 (Future Advance – Letter of Credit)
This endorsement modifies the prior ALTA Endorsement 14.2-06 and makes non-substantive changes to clarify coverage.

ALTA Endorsement 14.3-06 (Future Advance – Reverse Mortgage)
This endorsement modifies the prior ALTA Endorsement 14.3-06 and makes non-substantive changes to clarify coverage.

Please note that there is an Alaska statute requiring that the date the form was adopted by Stewart in Alaska be included in any newly filed form.  Therefore, an adoption date of 2/6/2012 appears on all of the newly filed forms under the serial number.

Withdrawn Forms:

These endorsements are no longer utilized on a regular basis.  Many of these endorsements are comparable to ALTA forms that are filed in and available for use in the state of Alaska.

ALTA Endorsement 21
ALTA Endorsement 21-06
ALTA Endorsement 27-06
STG Bona Fide Purchaser Endorsement
STG HUD – Non-cumulative liability Endorsement
STG Inflation Protection Endorsement
STG Last Dollar (STG 1, 2 & 3) Endorsement
STG Last Dollar w/Tie In Endorsement
STG Line of Credit (STG 1) Endorsement
STG No Zoning Applicable Endorsement
STG Pending Disbursement Endorsement
STG Pro Tanto Liability Endorsement
STG Reverse Mortgage Endorsement
STG Trustee Insured Endorsement
STG Utility Facility Endorsement

The amended rate manual is effective as of June 14, 2012, which is the date of approval.  Please find a summary of the relevant amendments to the content of the manual, as follows: 

  • Section 1.1 is amended to add language which states that our rates are based upon the full value of the property or interest to be insured.  This language was added to clear confusion that may result from the deletion in the 2006 ALTA policies of a stipulation that appears in the 1992 ALTA policies for co-insurance in the event the policy is issued in an amount which is less than the full value. 
  • Section 1.2 re-formats the standard exceptions. 
  • Section 1.3 is added to address rounding of computed rates up or down to the nearest whole dollar. 
  • Section 2.2 is amended to clarify applicability of the Short Term Rate. 
  • Section 2.7 replaces the word "Reissue" with "Refinance". 
  • The endorsement rate schedule is amended to add the new endorsements. 
  • The endorsement rate schedule is amended to delete the withdrawn endorsements.

The amended rate manual is available on Stewartpoint.com.  All referenced new and revised forms are available for review on Virtual Underwriter.  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.  

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:
None
Exceptions Manual:
None
Forms:
AK CLTA Endorsement 104.1-06 (Assignement of Mortgage) 9-10-10
 
AK CLTA Form 108.8-06 (Additional Advance) 09-10-10
 
ALTA Commitment 2006
 
ALTA Endorsement 11.1-06 (Mortgage Modification with Subordination) (10/22/09)
 
ALTA Endorsement 13-06 (Leasehold - Owner's) Revised 02-03-11
 
ALTA Endorsement 13.1-06 (Leasehold - Loan) Revised 02-03-11
 
ALTA Endorsement 14-06 (Future Advance - Priority) Revised 02-03-11
 
ALTA Endorsement 14.1-06 (Future Advance - Knowledge) Revised 2-3-11
 
ALTA Endorsement 14.2-06 (Future Advance - Letter of Credit) Revised 02-03-11
 
ALTA Endorsement 14.3-06 (Future Advance - Reverse Mortgage) Revised 02-03-11
 
ALTA Endorsement 29.2-06 (Interest Rate Swap Endorsement - Direct Obligation - Defined Amount) (08-01-11) Technical Corrections (04-02-14)(08-01-16)
 
ALTA Endorsement 29.3-06 (Interest Rate Swap Endorsement - Additional Interest - Defined Amount) (08-01-11) Technical Corrections (04-02-14; 08-01-16)
 
ALTA Endorsement 3.1-06 (Zoning-Completed Structure) Revised 10/22/09
 
ALTA Endorsement 30-06 (Shared Appreciation Mortgage) (7-26-10)
 
ALTA Endorsement 31-06 (Severable Improvements) Adopted 02-03-11
 
ALTA Endorsement 32-06 (Construction Loan - Loss of Priority) Adopted 02-03-11
 
ALTA Endorsement 32.1-06 (Construction Loan - Loss of Priority - Direct Payment) Adopted 02-03-11
 
ALTA Endorsement 33-06 (Disbursement) Adopted 02-03-11
 
ALTA Endorsement 34-06 (Identified Risk Coverage) (08-01-11)
 
ALTA Loan Policy 2006
 
ALTA Owner's Policy 2006