CO Mechanic's Lien Coverage Endorsement Guideline 101.1
Explanation:Provides insurance to an owner or lender against loss by reason of a specific, recorded mechanic's lien shown as an exception on Schedule B of the policy.
(1) In order to issue this endorsement you must obtain one of the following:
(a) A bond deposited into the District Court as substitute security for the lien claim and a release of the mechanic's lien of record.
(b) Cash deposit of 1-1/2 times the amount of the lien claim, into escrow with the company or agent to be held pursuant to specific, written escrow instructions specifying, at a minimum, the funds will be released only when the lien is released of record and any lawsuit to enforce same is dismissed and that the Company has the right to pay the lien with the escrowed funds if it deems such payment necessary.
(c) A fidelity bond (not a performance and payment bond) with the Company as beneficiary in a minimum amount of 1-1/2 times the amount of the lien claim, and indemnity agreement.
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):