Test - Stewart Title Guaranty Company High Liability (Over $30 Million) Mechanic’s Lien Coverage Approval Request
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Test - Stewart Title Guaranty Company High Liability (Over $30 Million) Mechanic’s Lien Coverage Approval Request
Test - Stewart Title Guaranty Company
High Liability (Over $30 Million) Mechanic’s Lien Coverage Approval Request
An underwriter must confirm that the questions are completed.
Please forward your request for senior underwriter committee approval to: Jim Gosdin, John Killea, and Lynne Demarest
Name of Issuing Office:
File No.:
Location of Property:
Please include street address, if available. Please include city, county, state and ZIP code.
Project Name/Designation, if any:
Contact Person:
Phone Number for Contact Person:
E-mail address for Contact Person:
PLEASE ALSO INCLUDE a signed STG Request for Approval to Issue Overlimits (Large) Policy or
Extra Hazardous Coverage. This Mechanic’s Lien Request is not a substitute for the Overlimits Request.
1. PREMIUM. Please specify:
(a) Total premium charge to customer for title insurance policies (excluding endorsements). $
(b) Amount of premium for title insurance policies (excluding endorsements) that will be remitted to $
Stewart Title Guaranty Company.
(c) Total premium charge to customer for endorsements. $
(d) Amount of premium for endorsements that will be remitted to Stewart Title Guaranty Company. $
(e) Total amount of premium for title insurance policies and endorsements that will be remitted to $
Stewart Title Guaranty Company.
(f ) $ per thousand premium charge to customer for title insurance policies and endorsements. $ / per thousand
(g) $ per thousand remitted to Stewart Title Guaranty Company for title insurance policies $ / per thousand and endorsements.
2. PROJECT DESCRIPTION AND COMMENCEMENT OF CONSTRUCTION. Please include/describe/attach:
(a) Proposed improvements. Insert description:
(b) Has the project commenced? _Yes _No If yes, what date and describe. Who was consulted, by whom, and on what date, to determine the above information?
Explain:
(c) Anticipated date of commencement. Insert date
(d) Anticipated date of completion. Insert date
(e) Absence of Commencement: If no services, labor, materials or equipment have been provided prior to mortgage recording, will the absence of such commencement be documented by: (i) affidavits from Owner and Contractor, (ii) inspection on date of recording prior to closing, and (iii)
re-inspection with date and time stamped photos immediately after recording? Describe procedure and person who will confirm/provide the above.
Insert information and name:
(f) “Early start”: If services, labor, materials or equipment have been provided prior to mortgage recording, will the following be obtained at closing: (i) lien waivers for all work performed to date, (ii) subordinations, (iii) Owner’s and Contractor’s sworn statements of work, and (iv) evidence of all bills paid current to date of closing? Describe procedure and person who will confirm/provide the above.
Insert information and name:
(g) Is a copy of an appraisal attached? _Yes _No
3. TITLE POLICIES. Please include/describe/attach:
(a) Amount of policy(ies) requested.
Loan Policy Amount $
Owner Policy Amount $
(b) Attach copy of commitment (required) and pro forma policy (if available).
(c) Attach or identify proposed form of ALTA 32 series endorsement or STG Pending Disbursement Clause or other requested form to be used in the Loan Policy. If there are requested changes, please identify and attach a redline.
Insert information
(d) Attach or identify proposed form of ALTA 33 Disbursement Endorsement or STG Construction Loan Endorsement or other requested form to be used in the Loan Policy. If there are requested changes, please identify and attach a redline.
Insert information
(e) Will the Owner’s Policy include a standard general mechanic’s lien exception? _Yes _No
If this section is blank, it will be assumed that the response is “Yes”. If the response is “No”, please explain in detail.
Include suggested exception text
4. CONTRACTOR AND SUBCONTRACTORS. Please include/describe/attach as noted:
(a) Attach project budget or summary of budget.
(b) Name(s) of original contractor(s), description of work, and amount of contract. Attach copy of contract(s). Name of Original Contractor(s) Describe Work / Attach copy of contract
(c) Amount paid to date to original contractor(s) and amount remaining to be paid for work already performed, if any.
Name of Original Contractor(s) Amount Paid To Date Amount Owed
(d) Is any contractor related to the Owner? _Yes _No If “Yes”, please describe.
(e) Date of expected completion by original contractor. Insert date
(f) List of all major first tier subcontractors, if any.
Insert description or attach list with amount(s) of contracts(s).
5. INDEMNITY(IES). Please include/describe/attach:
(a) Names and roles (e.g., general contractor, owner, individual(s), etc.) of parties who will execute indemnity(ies).
Name: Role (e.g., Owner, Contractor, Parent, Individual(s), etc.): Financial Statement Attached?
_Yes Date: _No
_Yes Date: _No
_Yes Date: _No
_Yes Date: _No
(c) Will STG Indemnity – Construction be executed on the date of recording? Attach a copy. _Yes _No
(b) What requested modifications were made to STG Indemnity – Construction form, if any? Attach a redlined copy. Insert description
(c) If other than STG Indemnity Form, review and attach form of requested indemnity.
(d) If other than STG Indemnity Form, does the indemnity include a subordination of rights/claims by the indemnitor? _Yes _No
(e) If other than STG Indemnity Form, does the original contractor subordinate its claims to the Insured Mortgage? _Yes _No
(f) List known outstanding indemnities by Owner and indemnitor, if different, and original contractor. Insert description
(g) Explain the authority of the indemnitor.
6. FINANCIAL STATEMENTS. Please include/describe/attach:
(a) Attach financial statements of owner/borrower and indemnitor, if different, and each original contractor, as available, or state ”None” in the section above.
(b) Were these financial statements reviewed by Stewart personnel, and, if so, by whom, and what were the comments, if any? Insert description
(c) Are they audited financial statements? _Yes _No
(d) Are they current? Insert date above. _Yes _No
7. SOURCES AND USES OF FUNDS. Please include/describe/attach as noted:
(a) Equity (land, cash, or other) to be provided by Owner or investors, and describe procedure, amount, and timing for contribution or investment. Insert description
(b) If equity is to be contributed into an account, attach the applicable account agreement/escrow agreement and a schedule showing the timing and amount of the equity contributions.
(c) Construction loan funding by lender: Include monthly sources and amounts of funds and scheduled monthly uses/payments to be made to contractors. Scheduled milestone payments must be shown.
Insert description/attach
(d) If a proposed condominium, please describe contract deposits, potential vendees liens, etc.
8. LENDER’S DISBURSEMENT PROCEDURES. Please include/describe/attach procedure, amount, and timing for disbursements:
(a) Frequency of disbursements (e.g., monthly). Describe frequency
(b) Approximate amount of each disbursement. $
(c) Approximate number of draws.
(d) Party who will be disbursing
Insert description
(e) Parties (e.g., owner, original contractor and/or subcontractors) who will be paid directly by lender or lender’s disbursing agent or other party disbursing.
Insert description
(f) Documents that will be required by lender or other party before disbursement (e.g. form of lien waiver).
Insert description
(g) Attach copy of Loan Agreement/Credit Agreement/Disbursement Agreement
9. TITLE COMPANY’S PROCEDURES AT DISBURSEMENT. Please include/describe/attach:
(a) Effective date of coverage (e.g. date of disbursement, date of invoices/waivers). Insert date
(b) Gap, if any, between effective date of coverage and date of invoices/waivers.
Insert description
(c) Waivers that will be obtained (and any limitations on enforcement under state law) and attach copies of the forms.
Insert description
(d) Subordinations that will be obtained (and any limitations on enforcement under state law) and attach copies of the forms.
Insert description
(e) Process for review and verification of waivers, review of title, procedure to determine that claimants are paid. Who will review?
Insert description and name
(f) Procedure and timing for issuance of down date endorsements, and whether endorsement will be issued prior to current disbursement, and, if issued prior to current disbursement, what conditions, if any, will be placed in the down date endorsement conditioning the coverage on that disbursement.
Insert description
10. EXPOSURE THAT WILL EXIST FOR THE PROPOSED COVERAGE ON THE LOAN POLICY.
Please include/describe/attach:
(a) Analysis of subcontractors and contractors who will not be paid through date of conditional waivers. Insert description
(b) Gap between date of conditional waivers and date of down date endorsement.
Insert description
(c) Estimate of the dollar amount of exposure (for bills not paid through date of coverage) for each down date endorsement. Insert amount $
11. BACKGROUND AND HISTORY. Please include/describe/attach:
Background and experience (including suits and known mechanic’s lien claims) of:
(a) Owner (or family) and their principals, how long they have engaged in the applicable business, and their track record on prior transaction(s). Insert description
(b) Each original contractor.
Insert description
(c) STG history with Owner (or family of companies) including past policies we have issued to lenders.
Insert description
(d) STG history with Contractor (or family of companies) including past policies we have issued to lenders.
Insert description
(e) Are the Owner and/or principals privately owned or publicly traded?
Insert description
(f) Has an analysis of the local market been performed by Stewart personnel, and, if so, by whom, and what were the comments, if any?
Insert description
12. OTHER/ADDITIONAL CREDIT ENHANCEMENTS. Please include/describe/attach:
(a) Parent indemnity or other indemnity(ies), third party guaranty, advance equity deposit, Letter of Credit, bonds (e.g. payment and/or performance), escrow, or other means for mitigating risk.
Insert description
Click here for a list of Mechanic’s Liens Documentation.
Project Name/Reference/Designation, if applicable:
Prepared by:
Print Name: (same as Contact Person, above)
Print Date:
NOTE: THIS APPROVAL, IF PROVIDED, RELATES ONLY TO THE MECHANIC’S LIEN COVERAGE AS PROPOSED, AND IS NOT THE HIGH LIABILITY (OVERLIMITS) APPROVAL FOR THE TRANSACTION AND OTHER COVERAGE OR REINSURANCE APPROVAL, WHICH MUST BE SEPARATELY REQUESTED AND PROVIDED.
APPROVALS
(1) GENERAL COUNSEL OR CHIEF UNDERWRITING COUNSEL (OR DELEGEE), AND (2) TWO SLS SENIOR UNDERWRITERS.
MECHANIC’S LIEN COVERAGE IS APPROVED, SUBJECT TO THE FOLLOWING ADDITIONAL CONDITIONS:
Chief Underwriting Counsel Date
Senior Underwriter Date
Senior Underwriter Date
Senior Underwriter Date
General Counsel Date
Revised 05/09/17
For issuing guidelines on this form, see Guidelines
High Liability (Over $30 Million) Mechanic’s Lien Coverage Approval Request
Supplement
Please use this area if you need additional space.
No guidelines are available for this form at this time.