Bulletin: GA2012001

Dear Associates:

The Georgia Office of Insurance and Safety Fire Commissioner has approved for use in Georgia effective February 17, 2012, the American Land Title Association (ALTA) forms listed below. These forms are largely designed to better coordinate with the 2006 ALTA Loan and Owner's Policies already approved for use in the state. The format of these new forms should aid in their understanding and interpretation as they have been written to clarify terms and reorganize the content of the language for easier understanding by the consumer. 

ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02/03/10)

The ALTA Homeowner's Policy of Title Insurance (02/03/10) is designed to incorporate the changes of the 2006 Owner's Policy and improve the title insurance coverage given to the insured. Guidelines. The only changes in the 2010 Policy include: 

• The expansion of the Continuation of Coverage provision by adding provision b.5 to the policy.
• The inclusion of a creditor's rights exclusion (no.7) that is consistent with the Covered Risks.
• The new definition for Estate Planning Entity was added to the definition section.  

ENDORSEMENTS.  The American Land Title Association has adopted new endorsements that are designed for issuance with the 2006 ALTA Owner and 2006 ALTA Loan Policy. These endorsements are as follows:

ALTA Endorsement 11.1-06 Mortgage Modification with Subordination. This endorsement is designed for issuance when an intervening lien is subordinated by agreement to the insured mortgage in connection with the modification of the insured mortgage. This form is similar to the ALTA Endorsement 11-06 which is already available in Georgia. 

ALTA Endorsement 29-06 Interest Rate Swap Endorsement-Direct Obligation. This new endorsement insures the validity, priority, and enforceability of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation. This endorsement will only be issued for Commercial transactions. Guidelines.

ALTA Endorsement 29.1-06 Interest Rate Swap Endorsement-Additional Interest. This new endorsement insures the validity, priority, and enforceability of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation that is considered additional interest. This endorsement will only be issued for Commercial transactions.  Guidelines.

ALTA Endorsement 29.2-06 (Interest Rate Swap Endorsement - Direct Obligation - Defined Amount) (08-01-11) . This endorsement insures against loss or damage, not to exceed the Additional Amount of Insurance, by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation at Date of Endorsement. 

ALTA Endorsement 29.3-06 (Interest Rate Swap Endorsement - Additional Interest - Defined Amount (08-01-11).  This endorsement insures against loss or damage, not to exceed the Additional Amount of Insurance, by reason of the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Additional Interest at Date of Endorsement.

ALTA Endorsement 30-06 One To Four Family Shared Appreciation Mortgage. This new endorsement may be used in connection with loan workouts or other finance transactions where the mortgage could secure payment of a portion of the appreciation in value of the land. The endorsement is designed for issuance on mortgages covering one-to-four family residences. 

ALTA Endorsement 31-06 (Severable Improvements) Adopted 02-03-11 . This new endorsement insures against covered loss with respect to property affixed to the land that does not constitute real property. This endorsement applies to commercial properties and insures not only specified loss resulting in the reduction in value of the insured's interest in any Severable Improvement, but also stated cost actually incurred in connection with the removal of any Severable Improvement.

ALTA Endorsement 32-06 (Construction Loan - Loss of Priority) Adopted 02-03-11. This new endorsement provides stated insurance with respect to the validity or priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage.

ALTA Endorsement 32.1-06 (Construction Loan - Loss of Priority - Direct Payment) Adopted 02-03-11. This new endorsement provides stated insurance with respect to the validity or priority of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage.

ALTA Endorsement 33-06 (Disbursement) Adopted 02-03-11. This new endorsement provides for a change to the Date of Coverage, but not the Date of Policy. This endorsement does not serve to change the dates on any endorsements and/or extended coverage.

ALTA Endorsement 34-06 (Identified Risk Coverage) (08-01-11).  This endorsement insures against loss or damage sustained by the Insured by reason of: (a.) A final order or decree enforcing the Identified Risk in favor of an adverse party; or (b.) The release of a prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease, or lend as a result of the Identified Risk, but only if (i.) there is a contractual condition requiring the delivery of marketable title, and (ii.) neither the Company nor any other title insurance company is willing to insure over the Identified Risk with the same conditions as in this endorsement.

The following endorsements modify the prior ALTA Endorsement 2006 form and include non-substantive changes to clarify coverage:

• ALTA Endorsement 3.1-06 Zoning-Completed Structure (E-9481) (10/22/09)
• ALTA Endorsement 4-06 Condominium (E-9542) (02/03/10)
• ALTA Endorsement 5-06 Planned Unit Development (E-9543) (02/03/10)
• ALTA Endorsement 10-06 Assignment (E-9544) (02/03/10)
• ALTA Endorsement 10.1-06 Assignment and Date Down (E-9545) (02/03/10)
• ALTA Endorsement 11.1-06 Mortgage Modification with Subordination (E-9493) (10/22/09)
• ALTA Endorsement 13-06  Leasehold-Owner's (E-9260) (02/03/11)
• ALTA Endorsement 13.1-06 Leasehold-Loan (E-9261) (02/03/11)
• ALTA Endorsement 14-06 Future Advance-Priority (E-9262) (02/03/11)
• ALTA Endorsement 14-06 Future Advance-Priority without MML (E-9263) (02/03/11)
• ALTA Endorsement 14.1-06 Future Advance-Knowledge (E-9264) (02/03/11)
• ALTA Endorsement 14.1-06 Future Advance-Knowledge without MML (E-9265) (02/03/11)
• ALTA Endorsement 14.2-06 Future Advance-Letter of Credit (E-9266) (02/03/11)
• ALTA Endorsement 14.2-06 Future Advance-Letter of Credit without MML (E-9267) (02/03/11)
• ALTA Endorsement 14.3-06 Future Advance-Reverse Mortgage (E-9268) (02/03/11)
• ALTA Endorsement 14.3-06 Future Advance-Reverse Mortgage without MML (E-9269) (02/03/11)
• ALTA Endorsement 28-06 Easement-Damage or Enforced Removal (E-9546) (02/03/10)  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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