CLTA Mechanic's Lien Coverage Endorsement Guideline 101.5

Explanation:

Provides a lender with assurance as to the recording of a notice of completion and that, the land described in such notice, is not subject to any mechanic's liens except as stated in the endorsement.

Underwriting Requirements:

(1) Customarily this endorsement is requested by a blanket construction loan lender when construction loan funds are being disbursed in periodic installments and the lender withholds the last disbursement until work has been completed and the statutory period for the filing of mechanic's liens has expired.

(2) If the statutory period for the filing of mechanic's liens has not expired, approval must be obtained from the appropriate Stewart Title Guaranty underwriting personnel.

(3) This guideline is for California property. The appropriate Stewart Title Guaranty underwriting personnel must be contacted prior to issuance in other states.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

CLTA Mechanic's Lien Coverage Endorsement (06-03-05) 101.5