Bulletin: MT2012001

Date:
December 31, 2012
To:
All Montana Issuing Offices
RE:
ALTA Forms with corresponding Rates and Rules filed for use in Montana

Dear Associates: 

Stewart Title Guaranty Company has recently filed the following new American Land Title Association (ALTA) forms along with the corresponding Rates and rules for use in Montana. These forms were approved for use in Montana as of January 1, 2013.

The following are the newly adopted endorsement forms and rates:

  1. ALTA Endorsement 29.2-06 Interest Rate Swap - Direct Obligation – Defined Amount (E-9584) (08011) (electronic prefix 9174)
    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 the Date of the Endorsement.

    The charge for this endorsement shall be the applicable increase in liability for the additional amount of insurance set forth in the endorsement form taken from the basic schedule of charges.
  2. ALTA Endorsement 29.3-06 Interest Rate Swap - Additional Interest - Defined Amount (E-9585) (080111) (electronic prefix 9175)
    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.

    The charge for this endorsement shall be the applicable increase in liability for the additional amount of insurance set forth in the endorsement form taken from the basic schedule of charges.
  3. ALTA Endorsement 30-06 One to Four Family Shared Appreciation Mortgage (E-9553) (070610) (electronic prefix 9253)
    This endorsement is used when the insured mortgage provides that a portion of the consideration for the mortgage is based upon a sharing by the assured lender in the appreciation realized on the land.

    The charge for this endorsement is $25.00.
  4. ALTA Endorsement 31-06 Severable Improvements (E-9270) (020311) (electronic prefix 9170)
    This endorsement, when affixed to a title insurance policy, provides that in the event of a loss covered by the policy that the calculation of the loss shall include the diminution in value of the Insured's interest in the "Severable Improvement" resulting from the Defect, reduced by the salvage value of the Severable Improvement, and the reasonable cost actually incurred by the Insured in connection with the removal or relocation of the Severable Improvement resulting from the Defect and the cost of transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the relocation. This endorsement is for commercial transactions.

    The charge for this endorsement is 10% of the Basic Schedule of Charges for the policy with a minimum of $100.00.
  5. ALTA Endorsement 32-06 Construction Loan - Loss of Priority (E-9271) (020311) (electronic prefix 9171)
    This 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.

    The charge, where visible commencement of construction occurs prior to the recording of the insured mortgage, for amending the mechanic's lien exception to limit coverage to the amount actually disbursed for liens filed later by lien claimants that were actually paid or paid with the policy issuing agent's approval (pending disbursement coverage) is $1.50 per thousand of the total loan amount.
  6. ALTA Endorsement 32.1-06 Construction Loan - Loss of Priority – Direct Payment (E-9272) (020311) (electronic prefix 9172)
    This 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.

    The charge, where visible commencement of construction occurs prior to the recording of the insured mortgage, for amending the mechanic's lien exception to limit coverage to the amount actually disbursed for liens filed later by lien claimants that were actually paid or paid with the policy issuing agent's approval (pending disbursement coverage) is $1.50 per thousand of the total loan amount.
  7. ALTA Endorsement 33-06 Disbursement (E-9273) (020311) (electronic prefix 9173)
    This 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 extend coverage.

    The charge for this endorsement is $50.00 for residential land and $100.00 for commercial land."
  8. ALTA Endorsement 34-06 Identified Risk Coverage (E-9586) (080111) (electronic prefix 9176)
    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.

    The charge for this endorsement shall be $20.00.

Further information regarding the insurance of these endorsements can be obtained by contacting a Stewart Title Guaranty Company underwriter or found in the guidelines for the endorsement in Virtual Underwriter.

Any agent using AFW or AFW+ should contact PropertvInfo Customer Care to get the new rate(s) changes implemented in their AFW or AFW + system.

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.