Bulletin: MU2014002

Date:
January 17, 2014
To:
All Colorado and Washington Issuing Offices
RE:
LEGISLATIVE UPDATES - Retail Marijuana Sales

Dear Associates:

The laws of Colorado and Washington State have been changed legalizing the retail sales of marijuana for recreational purposes. These laws are effective January 1, 2014, in both states but with final regulations in Washington coming somewhat later. To date, no such legislative acts have been approved in any other of the United States. 

In both jurisdictions there are a myriad of unanswered questions and issues, not the least of these issues being the stance of the federal government regarding the enforcement of existing federal laws proscribing the growing, processing, sale and possession of marijuana and its various products. Although federal enforcement officials in Colorado have currently taken the position that violations of federal law will not be prosecuted at the present time if the sales are made in strict compliance with Colorado law, the position is not one that is backed by federal statute and may be changed at any time. The picture in Washington is equally cloudy.

Accordingly, when knowledge of current or intended use of the property that is the subject of an order for title and/or escrow services involves the production, processing, sale, possession and/or use of marijuana, the order should be considered to involve special risk and must be reviewed by an Underwriter. This also applies if we discover that tenants are conducting any such activities while in possession of the property under leasehold or rental agreements. Depending upon the information obtainable and the circumstances present, we may decline to provide the requested services.

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:
None