Bulletin: SD2012001

Dear Associates:    

This Bulletin is to advise you that the following policy forms and endorsements have been approved and are effective as of Monday, March 12, 2012.  

1. ALTA Endorsement 3.1-06 Zoning - Completed Structure (E-9481)
2. ALTA Endorsement 4-06 Condominium (E-9542)
3. ALTA Endorsement 4.1-06 Condominium (E-9418)
4. ALTA Endorsement 5-06 Planned Unit Development (E-9543)
5. ALTA Endorsement 5.1-06 Planned Unit Development (E-9420)
6. ALTA Endorsement 6-06 Variable Rate Mortgage (E-9421) 
7. ALTA Endorsement 6.2-06 Variable Rate Mortgage - Negative Amortization (E-9422) 
8. ALTA Endorsement 8.2-06 Commercial Environmental Protection Lien (E-9485) 
9. ALTA Endorsement 9-06 Restrictions, Encroachments, Minerals-Loan Policy (E-9254) 
10. ALTA Endorsement 9.1-06 Restrictions, Encroachments, Minerals - Owner's Policy - Unimproved Land (E-9255)  
11. ALTA Endorsement 10-06 Assignment (E-9544) 
12. ALTA Endorsement 10.1-06 Assignment and Date Down (E-9545) 
13. ALTA Endorsement 11.1-06 Mortgage Modification with Subordination (E-9493) 
14. ALTA Endorsement 13-06 Leasehold - Owner's (E-9260)
15. ALTA Endorsement 13.1-06 Leasehold - Loan (E-9261)
16. ALTA Endorsement 14-06 Future Advance - Priority - With MML (E-9262)
17. ALTA Endorsement 14.1-06 Future Advance - Knowledge - With MML (E-9264)
18. ALTA Endorsement 14.1-06 Future Advance - Knowledge - Without MML (E-9265)
19. ALTA Endorsement 14.2-06 Future Advance - Letter of Credit - With MML (E-9266)
20. ALTA Endorsement 14.2-06 Future Advance - Letter of Credit - Without MML (E-9267)
21. ALTA Endorsement 14.3-06 Future Advance - Reverse Mortgage - With MML (E-9268) 
22. ALTA Endorsement 14.3-06 Future Advance - Reverse Mortgage - Without MML (E-9269)
23. ALTA Endorsement 17.2-06 Utility Access (E-9486)
24. ALTA Endorsement 23-06 Co-Insurance - Single Policy (E-9480)
25. ALTA Endorsement 24-06 Doing Business (E-9487)
26. ALTA Endorsement 25-06 Same as Survey (E-9488)
27. ALTA Endorsement 25.1-06 Same as Portion of Survey (E-9489)
28. ALTA Endorsement 26-06 Subdivision (E-9490)
29. ALTA Endorsement 27-06 Usury (E-9491)
30. ALTA Endorsement 28-06 Easement - Damage or Enforced Removal (E-9546)
31. ALTA Endorsement 29-06 Interest Rate Swap - Additional Interest - Direct Obligation (E-9547)
32. ALTA Endorsement 29.1-06 Interest Rate Swap - Additional Interest (E-9548)
33. ALTA Endorsement 29.2-06 Interest Rate Swap – Direct Obligation – Defined Amount (E-9584)
34. ALTA Endorsement 29.3-06 Interest Rate Swap – Additional Interest – Defined Amount (E-9585)
35. ALTA Endorsement 30-06 One to Four Family Shared Appreciation Mortgage (E-9553)
36. ALTA Endorsement 31-06 Severable Improvements (E-9270)
37. ALTA Endorsement 32-06 Construction Loan - Loss of Priority (E-9271)
38. ALTA Endorsement 32.1-06 Construction Loan - Loss of Priority - Direct Payment (E-9272)
39. ALTA Endorsement 33-06 Disbursement (E-9273)
40. ALTA Endorsement 34-06 Indentified Risk Coverage (E-9586)
41. ALTA Expanded Coverage Residential Loan Policy (M-9551)
42. ALTA Homeowner's Policy of Title Insurance (O-9540)
43. ALTA Short Form Expanded Coverage Residential Loan Policy (U-9552)

Below are the descriptions which set forth the new rates and rules for the newly approved forms.

ALTA 8.2-06 Environmental Protection Lien
The environmental protection lien endorsement is issued in conjunction only with a loan policy and only on commercial property. It provides assurances that there are no environmental protection liens filed in the local records or in the federal district court clerk's office that could have priority over the lien of the insured mortgage (unless any such lien is excepted). The charge for this endorsement shall be $50.

ALTA 11.1-06 Mortgage Modification Endorsement Form
This endorsement provides a lender with protections against the invalidity, unenforceability and lack of priority of the insured mortgage because of a recorded modification agreement.
The charge for this endorsement shall be 10% of the basic schedule of charges with a minimum of $25.00.

ALTA 17.2-06 Utility Access
This endorsement insures against loss if there is a lack of a right of access to specific utilities or services over, under or upon rights-of-way or easements because of: (1) a gap or gore between the boundaries of the Land and the rights-of-way or easements, (2) a gap between the boundaries of the rights-of-way or easements, or (3) a termination by a grantor, or its successor, of the rights-of-way or easements.
The charge for this endorsement is $100.00.

ALTA 23-06 Co-Insurance – Single Policy
This endorsement identifies other insurers in the policy and allocates liability among the insurers.
There is no charge for this endorsement.

ALTA 24-06 Doing Business
This endorsement insures against unenforceability of the lien of the insured mortgage because making the loan violated doing business laws of the state in which the land is located.
The charge for this endorsement is $50.00.

ALTA 25-06 Same as Survey
This endorsement insures that the description of the land shown in Schedule A of the policy is the same as the land shown on the mentioned survey.
The charge for this endorsement is $50.00.

ALTA 25.1-06 Same As Portion of Survey
This endorsement insures that the description of the land shown in Schedule A of the policy is the same as the land shown as a defined parcel on the mentioned survey.
The charge for this endorsement is $50.00.

ALTA 26-06 Subdivision
This endorsement insures against failure of the land to constitute a lawfully created parcel according to the subdivision statutes and local subdivision ordinances.
The charge for this endorsement is $50.00.

ALTA 27-06 Usury
This endorsement is issued only in conjunction with the Loan Policy. The endorsement insures against loss by reason of invalidity or unenforceability of the lien of the insured mortgage resulting from violation of the usury laws of a specific state in effect at the date of the policy.
The charge for this endorsement is $100.00.

ALTA 28-06 Easement-Damage or Enforced Removal
This Endorsement provides insurance to a lender against loss in the event that a specific easement holder shall (1) cause damage to a building located on the land at date of policy, or (2) compel the removal or alterations of an existing building located on the land at date of policy.
The charge for this endorsement is $50.00.

ALTA 29-06 Interest Rate Swap Endorsement - Direct Obligation
This endorsement insures the validity, priority, and enforceability of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation.
The charge for this endorsement is 10% of the basic schedule of charges with a minimum of $100 when the date of the endorsement is the same as the date of the loan policy. The charge for this endorsement is 10% of the basic schedule of charges with a minimum of $200 when the date of the endorsement is after the date of the loan policy.

ALTA 29.1-06 Interest Rate Swap Endorsement - Additional Interest
This 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.
The charge for this endorsement is 10% of the basic schedule of charges with a minimum of $100 when the date of the endorsement is the same as the date of the loan policy. The charge for this endorsement is 10% of the basic schedule of charges with a minimum of $200 when the date of the endorsement is after the date of the loan policy.

ALTA 29.2-06 Interest Rate Swap Endorsement - Direct Obligation - Defined Amount
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.
The charge for this endorsement shall be the applicable increase in liability for the additional amount of insurance set forth in the endorsement form taken from the basic schedule of charges.

ALTA 29.3-06 Interest Rate Swap Endorsement - Additional Interest - Defined Amount
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.
The charge for this endorsement shall be the applicable increase in liability for the additional amount of insurance set forth in the endorsement form taken from the basic schedule of charges.

ALTA 30-06 One To Four Family Shared Appreciation Mortgage Endorsement
This endorsement is used when the insured mortgage provides that a portion of the consideration for the mortgage is based upon a sharing by the assured lender in the appreciation realized on the land.
The charge for this endorsement is $25.00.

ALTA 31-06 Severable Improvements Endorsement
This endorsement, when affixed to a title insurance policy, provides that in the event of a loss covered by the policy that the calculation of the loss shall include the diminution in value of the Insured’s interest in the "Severable Improvement" resulting from the Defect, reduced by the salvage value of the Severable Improvement, and the reasonable cost actually incurred by the Insured in connection with the removal or relocation of the Severable Improvement resulting from the Defect and the cost of transportation of that Severable Improvement for the initial one hundred miles incurred in connection with the relocation. This endorsement is for commercial transactions.
The charge for this endorsement is 10% of the Basic Schedule of Charges for the policy with a minimum of $100.

ALTA 32-06 Construction Loan – Loss of Priority Endorsement
This 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.
The charge for this endorsement is $50.

ALTA 32.1-06 Construction Loan – Loss of Priority – Direct Payment Endorsement
This 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.
The charge for this endorsement shall be $50.

ALTA 33-06 Disbursement Endorsement
This 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.
The charge for this endorsement is $50.00 for residential land and $100.00 for commercial land.

ALTA 34-06 Identified Risk Coverage Endorsement
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 charge for this endorsement shall be $20.

The updated and revised South Dakota Manual of Charges and Forms for Title Insurance in the State of South Dakota have been uploaded to the following website: http://stewart.com/south-dakota . Click on  the "Rate Manuals" link on that website. 

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

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