NY TIRSA Cooperative Endorsement for ALTA Loan Policy Guideline 1995
Explanation:Purpose Of Endorsement:
Similar to the leasehold endorsement, this endorsement amends the 1992 ALTA forms of policy to define a “proprietary leasehold estate” and to value the interest insured for purposes of computing loss, and to provide additional miscellaneous loss provisions. In addition, the policy is amended to Exclude matters (excepting mortgages) which existed on or prior to the date the co-op was created, and to insure against certain losses peculiar to cooperatives.
Underwriting Requirements:Requirements For Issuance:
(a) Must be issued with every policy insuring a cooperative proprietary leasehold or loan secured by a cooperative;
(b) The cooperative offering plan must be validly filed with the Attorney General;
(c) Proprietary lease or lease assignment must contain a lien law trust fund clause (§13 of Lien Law), and stock must be transferred or pledged with the lease, as the lease cannot be severed from the shares of stock in the coop corporation;
(d) Coop corporation must certify (i) proprietary lease is in full force and effect and maintenance charges paid up to date (ii) shares of stock are duly registered on the corporate books in the name of the transferor or borrower, and have not been pledged, nor has the cooperative corporation been served with any judgment execution (iii) that the coop corporation has waived any right of first refusal;
(e) Exception must be taken for loss, cost or damage due to non-recording of proprietary lease or memorandum thereof, or the mortgage or security instrument, a UCC-1 must be filed in advance of funding of a coop loan; for a loan, a recognition agreement with the coop corporation is required.
Issued With The Following Policies:
(a) The NY TIRSA COOPERATIVE ENDORSEMENT (Loan Policy) (For ALTA 10/17/92) is issued with every loan policy insuring a loan secured by a cooperative leasehold;
(b) The NY TIRSA COOPERATIVE ENDORSEMENT (Owner’s Policy) (For ALTA 10/17/92) is issued with every cooperative leasehold owner’s policy.
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):None