Bulletin: CO000023

Dear Associates:

Stewart Title Guaranty Company requires that issuing offices within the state of Colorado comply with the provisions contained within Title Insurance Regulation 3-5-1 related to insuring over the possible adverse effects of any recorded lien, recorded encumbrance, or other recorded interest.

We refer you to the provisions within Title Insurance Regulation 3-5-1 which read as follows:

No title entity shall undertake to insure any person or entity against the possible adverse effect of any recorded lien, recorded encumbrance, or other recorded interest unless:

1. Such title entity deletes such recorded lien, recorded encumbrance, or other recorded interest from the schedule of exceptions in its title commitment and has on hand funds, securities, a bonded obligation, or letter of credit payable to the order of said title entity, adequate to discharge such lien, encumbrance or other interest in the event said lien, encumbrance or other interest is perfected to the detriment or possible detriment of the person or entity insured, or any successor in interest to such person or entity; or
   
   
2. Such title entity reflects such recorded lien, recorded encumbrance or other recorded interest in the schedule of exceptions in its title commitment, and such title entity receives an appropriate indemnity from the responsible party.

It is imperative whenever you are insuring over any recorded interest ("Interest") in title by obtaining an indemnity agreement that the Interest be listed in the title commitment to disclose the Interest to the proposed insured. Even if you have knowledge prior to the issuance of the title commitment that you have or will have an indemnity agreement, the Interest still must be placed on the title commitment as a Schedule B-I Requirement so that it is disclosed to the proposed insured.

If you have any questions in regard to this please feel free to contact Colorado District office.