Bulletin: NJ000082

Attached are copies of the new Form NJ 5-71 Future Advances - Priority (ALTA 14), Form NJ 5-72 Future Advances - Knowledge (ALTA 14.1) and Form NJ 5-73 Future Advances - Letter of Credit (ALTA 14.2) which are approved for use beginning March 8, 2004. 

The forms should be issued when requested under the following circumstances:

Form NJ 5-71 Future Advances - Priority (ALTA 14) insures the continued priority of an advance over liens or encumbrances made after the date of the policy but prior to the date of the advance.

Form NJ 5-72 Future Advances - Knowledge (ALTA 14.1) provides the same coverage as ALTA 14, but does not cover the loss of priority of an advance made after the insured has knowledge of a lien, encumbrance or other matter made after the date of the policy but prior to the date of the advance.

Form NJ 5-73 Future Advances - Letter of Credit (ATA 14.2) provides the same coverage as ALTA 15 and should be used to insure a loan where the indebtedness secured by the insured mortgage is in the form of a letter of credit, surety agreement or reimbursement agreement, and future advances are to be made.

The charge for each of these endorsements is $50 per file, whether both the lender and applicant request the form or only one does.

Attached are the following pages to be substituted into your Rate and Form Manual:

            Add Pages 234 through 239   

            Substitute Page 92

Please call the State office if you have any questions, and note that revised Rate and Form Manuals will be issued shortly.