Uniform Commercial Code

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Standard Exception Topic

UCC


Uniform Commercial Code

Fixtures are part of the real estate. Therefore, a lien (such as a UCC) against a fixture must generally be excepted when insuring title to the land.

Requirements

Standard Exception Subtopic

UCCR01

STG

12/01/1995
V 4

UCCs By Lessees

For Informational Purposes Only: The Company will not specifically except to the following financing statements in the Policy to be issued because same apply to personalty (which is not insured) or to the interest of lessees in the land:
Comment: Sometimes UCCs against lessees are not specifically excepted in a loan policy on the fee if the Company except to the lease and disclose the UCCs.

See Underwriting Manual


Standard Exception Subtopic

UCCR02

STG

12/01/1995
V 4

Require Release of UCC

The Company requires for its review a satisfactory termination (or release of the land) of the Financing Statement.
Comment: Separately filed UCCs must be released unless barred (over 5 years old and no continuation or bankruptcy). You may not rely upon a nonjudicial foreclosure of a prior mortgage to waive the UCC.

See Underwriting Manual


Exceptions

Standard Exception Subtopic

UCCX01

ALTA

12/01/1995
V 4

Financing Statement

Financing Statement executed by ____________ to ____________ recorded ____________.
Comment: You should use this language when excepting to a UCC.

Standard Exception Subtopic

UCCX02

ALTA

12/01/1995
V 4

Continuation

Continuation Statement recorded ____________ pursuant to that Financing Statement recorded ______________.
Comment: A continuation statement extends a UCC an additional 5 years.

Standard Exception Subtopic

UCCX03

ALTA

12/01/1995
V 4

Assignment

Statement of Assignment to __________________ recorded ____________ of that Financing Statement recorded.
Comment: You should use this language in excepting to a UCC assignment.

Standard Exception Subtopic

UCCX04

ALTA

12/01/1995
V 4

Except to Fixtures in UCC

Rights of others in and to fixtures described in that financing statement recorded _____________________.
Comment: If a lessee executed a UCC and the new insured lender on the fee objects to the UCC exception, the Company prefers to carve out the itemized fixtures covered by the UCC.

(a) Proof is required to show that __(name)__ is a benevolent association (order, lodge, post) duly chartered as a subordinate (order, lodge, post, etc.) of the __(name)__, and that said charter is in full force and effect and has not been revoked or suspended.

(b) Proof is required to show that __(name)__ has duly qualified pursuant to Section 2 of the Benevolent Orders Law by electing three trustees and by filing the certificate of election with the Secretary of State.

(c) Proof is required to show that __(name)__ has duly qualified pursuant to Section 2 of the Benevolent Orders Law by electing three trustees and by filing the certificate of election with the Secretary of State.

(d) Proof is required to show that the sale of the premises herein has been duly authorized by the membership of __(name)__ at the meeting duly called in accordance with the constitution and by-laws thereof and the constitution and by-laws relating to membership meetings and to the property of the association must be submitted for examination to the Company.

(e) Proof is required to show the names of the present acting trustees and the term of their office by certificate of the secretary of the __(name)__.