THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: OR000005
Bulletins by State or Territory
Bulletins by Country
Bulletin: OR000005
Dear Associates:
The Ninth Circuit Court of Appeals has ruled that bankruptcy tolls the statutory period for filing suit to foreclose a mechanic's claim of lien. In re Hunter's Run Ltd . 875 F.2d 1425 (1989). This case reverses earlier decisions by bankruptcy courts in Washington and Oregon.
The statutory period for filing suit is six months in Alaska (AS 34.35.080), 120 days in Oregon (ORS 87.055) and eight months in Washington (RCW 60.04.100).
You should be very cautious before eliminating a recorded claim of lien because this period has expired. A bankruptcy by the owner or other party responsible for the lien, such as the general contractor, will keep the lien in effect and extend the time for foreclosure.
Please contact me if you have any questions.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None