Guideline: ALTA Endorsement 21-06 (Creditors' Rights) DECERTIFIED AND WITHDRAWN AS ALTA FORM BY ALTA

Explanation:

The 2006 ALTA Owner's and Loan Policies provide limited creditors' rights coverage arising out of prior transactions or arising out of delayed or ineffective recording of documents in the current transaction. That coverage is further limited by several exclusions, including "failure to pay value," "acts of the insured," "knowledge of the insured," "no loss," "matters arising after Date of Policy," and a "creditors' rights" exclusion relating to the current transaction. The 2006 ALTA Owner's and Loan Policies also contain creditors' rights exclusions relating to the current transaction. Additionally, the current ALTA Endorsement 10-06 (Assignment) (2/3/10) and ALTA Endorsement 10.1-06 (Assignment and Date Down) (2/3/10) and ALTA Endorsement 11-06 (Mortgage Modification) (6/17/06), ALTA Endorsement 11.1-06 (Mortgage Modification with Subordination) (10/22/09), ALTA Homeowner's Policy of Title Insurance (2/3/10), and Expanded Coverage Residential Loan Policy (7/26/10) include a creditors' rights exception or exclusion.

Neither the 1970 Policy nor the deletion of a creditors' rights exclusion in the 1992 ALTA Policy or in the 2006 ALTA Policy was sufficient to provide creditors' rights coverage. The 1970 Policy had no explicit insuring provision dealing directly with creditors' rights, while the deletion of the creditors' rights exclusion from the 1992 ALTA Policy or the 2006 ALTA Policy did not simultaneously add an insuring provision and was not an effective method to secure coverage. Only Creditors' Rights Endorsements, such as the former ALTA Creditors' Rights Endorsement 21-06, included explicit provisions, and they also include additional limitations. Each approach (the 1970 Policy, Deletion of the Creditors' Rights Exclusion, or the applicable Creditors' Rights Endorsement) also remained subject to any other applicable exclusions and terms of the policy, including Exclusion 3.

Neither the 1970 Policy nor the deletion of a creditors' rights exclusion in the 1992 ALTA Policy or in the 2006 ALTA Policy was sufficient to provide creditors' rights coverage. The 1970 Policy had no explicit insuring provision dealing directly with creditors' rights, while the deletion of the creditors' rights exclusion from the 1992 ALTA Policy or the 2006 ALTA Policy did not simultaneously add an insuring provision and was not an effective method to secure coverage. Only Creditors' Rights Endorsements, such as the former ALTA Creditors' Rights Endorsement 21-06, included explicit provisions, and they also include additional limitations. Each approach (the 1970 Policy, Deletion of the Creditors' Rights Exclusion, or the applicable Creditors' Rights Endorsement) also remained subject to any other applicable exclusions and terms of the policy, including Exclusion 3.

Underwriting Requirements:

1. Creditors' rights coverage may not be given under any circumstances.

2. The Issuing Office may not issue the 1970 ALTA policy in any jurisdiction.

3. The Issuing Office may not delete any creditors' rights exclusion or Exclusion 3(e) (Value) in any jurisdiction.

4. The Issuing Office may not issue the ALTA Creditors' Rights Endorsement (21-06) or any similar endorsement in any jurisdiction.

5. The Issuing Office may not co-insure any transaction without written approval from a Stewart Underwriter.

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):

SLS2012008 - Creditors' Rights Coverage for the Current Transaction - Reminder

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.