CLTA 122.1A-06 Construction Loan Advance - Initial Advance - 2006 ALTA Loan Policy (11-04-11)

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CLTA 122.1A-06 Construction Loan Advance - Initial Advance - 2006 ALTA Loan Policy (11-04-11)

Form Document

Attached to Policy No. __________
Issued by

Notwithstanding exception _______ in Schedule B of the above referenced policy, the Company insures against loss or damage sustained or incurred by the Insured by reason of the lack of priority of the lien of the Insured Mortgage over any statutory lien for services, labor or material affecting the Title and arising from construction of a work of improvement on the Land, but only to the extent that such lien is for services provided, labor performed or materials furnished prior to ________________________.

    This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.




CLTA 122.1A-06 (11-04-11)
ALTA - Lender

[NOTE: Add General ML exception to preliminary report or title commitment and Schedule B of loan policy covering initial disbursement of advance; subsequent advances covered by issuance of CLTA 122.1B-06 require a separate Schedule B exception re Mechanics’ Lien Coverage Cut-Off Date Definition and Pending Disbursement Schedule B exception in the preliminary report or title commitment and loan policy of title insurance ]

CLTA Form 122.1A-06: Information Page – Schedule B Exception re Mechanics’ Lien Definition of Mechanics’ Lien Coverage Liability Limit must be added to Preliminary Report or Title Commitment and Loan Policy prior to issuance of CLTA 122.1A-06:

    Any statutory lien for services, labor, or material which arises from service provided, labor performed, or material or equipment furnished on or after ___________________ (the “Mechanics’ Lien Coverage Cut-Off Date.” [This Schedule B exception needs to be added in the preliminary report or title commitment and policy if there is an initial loan draw to be covered by the loan policy that has a general mechanics’ lien exclusion in tandem with the issuance of the CLTA 122.1A-06 endorsement form and and our underwriting gets us comfortable insuring a “gap” between (A) the date as of which we have satisfactory documentary evidence that everyone has been paid current – presumably including lien waivers from all appropriate parties, and (B) the Date of Policy].

No guidelines are available for this form at this time.