Bulletin: LA2016001

Dear Associates:

Please be advised that the following forms and rate changes have been approved for use in Louisiana effective December 1, 2015.

New Policy Form:

ALTA RESIDENTIAL LIMITED COVERAGE MORTGAGE MODIFICATION POLICY Adopted 12-01-14 
This policy, subject to its terms, conditions and exclusions, and provided that the Land is a one-to-four family residence or condominium unit, insures, as of Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of the invalidity or unenforceability of the lien of the Insured’s Mortgage upon the Title at Date of Policy as a result of the Modification; and the loss of priority of the lien of the Insured’s Mortgage, at Date of Policy, over any defects in or liens or encumbrances on the Title as a result of the Modification.

New Endorsement Forms:

ALTA Endorsement 9.6.1-06 (Private Rights – Current Assessments – Loan Policy) Adopted 04-02-15 
This endorsement, subject to its terms and conditions, insures the Insured against loss or damage due to the enforcement of a “Private Right” in a covenant that results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage, or that causes a loss of the Insured’s title acquired in satisfaction or partial satisfaction of the indebtedness. “Private Right” is defined as (i) a private charge or assessment due and payable at Date of Policy; (ii) an option to purchase; (iii) a right of first refusal; or (iv) a right of prior approval of a future purchaser or occupant.

ALTA 9.10-06 (Restrictions, Encroachments, Minerals – Current Violations – Loan Policy) Adopted 04-02-13
This endorsement, subject to its terms and conditions, insures the insured under a Loan Policy against loss or damage sustained by reason of an encroachment of an Improvement located on the Land, at Date of Policy, onto adjoining land or onto that portion of the Land subject to an easement; or an Improvement located on adjoining land onto the Land at Date of Policy.

ALTA Endorsement 19.2-06 (Contiguity – Specified Parcels) Adopted 04-02-15
This endorsement may be issued with an Owner’s Policy or a Loan Policy and insures against loss or damage sustained by the Insured by reason of any gaps, strips, or gores lying within or between specified parcels as depicted in a referenced survey.

ALTA Endorsement 36.7-06 (Energy Project – Fee Estate – Owner’s Policy) Adopted 12-01-14
This endorsement may only be issued with an Owner’s Policy issued in connection with an “energy project”, including those designed to harvest wind and solar energy. The endorsement, subject to its terms and conditions, adds some energy project-specific definitions; expands the “Valuation of Title” section to make clear that the computation of loss or damage for a covered defect affecting one parcel (or fewer than all parcels) shall include resulting loss or damage to the “integrated project”; builds in coverage for “Severable Improvements” (as defined); changes the “Additional Items of Loss” section as appropriate to the energy project context; and adds a new exclusion addressing costs of remediation resulting from environmental damage or contamination.

ALTA Endorsement 36.8-06 (Energy Project – Fee Estate – Loan Policy) Adopted 12-01-14
This endorsement may only be issued with a Loan Policy issued in connection with an “energy project”, including those designed to harvest wind and solar energy. The endorsement, subject to its terms and conditions, adds some energy project-specific definitions; expands the “Valuation of Title” section to make clear that the computation of loss or damage for a covered defect affecting one parcel (or fewer than all parcels) shall include resulting loss or damage to the “integrated project”; builds in coverage for “Severable Improvements” (as defined); changes the “Additional Items of Loss” section as appropriate to the energy project context; and adds a new exclusion addressing costs of remediation resulting from environmental damage or contamination.

ALTA Endorsement 45-06 (Pari Passu Mortgage – Loan Policy) Adopted 12-01-14
This endorsement, subject to its terms, conditions and exclusions, insures against loss or damage sustained by the Insured by reason of the invalidity or unenforceability of the lien of the Insured Mortgage solely due to the provisions of a Pari Passu Mortgage (as defined in the endorsement) or an Intercreditor Agreement (as defined in the endorsement) establishing lien priority or the lack of equal lien priority of the Insured Mortgage with the other Pari Passu Mortgages. This endorsement was developed by ALTA for large commercial transactions and the need for this type of endorsement may occur in Louisiana.

New Policy Rate:

PR- 5 RESIDENTIAL LIMITED COVERAGE MORTGAGE MODIFICATION POLICY
The premium for this Policy is $0.50 per thousand of the unpaid balance of the mortgage with a minimum premium of $125.

New Endorsement Rates:

ER-9.6.1 Private Rights – Current Assessments – Loan Policy (ALTA FORM 9.6.1)
The Rate for this endorsement is 10% of the Original Rate, or any fractions thereof [sic], of the Policy amount. The minimum premium is $150.

ER-9.10 Restrictions, Encroachments, Minerals – Current Violations – Loan Policy (ALTA FORM 9.10) 
The Rate for this endorsement is 10% of the Original Rate, or any fractions thereof [sic], of the Policy amount. The minimum premium is $150.

ER-19.2 Contiguity – Specified Parcels (ALTA FORM 19.2)
The Rate for this endorsement is $135.

ER-36.7 ENERGY PROJECT – FEE ESTATE – OWNER’S POLICY (ALTA FORM 36.7)
The rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-36.8 ENERGY PROJECT – FEE ESTATE – LOAN POLICY (ALTA FORM 36.8)
The rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-45 PARI PASSU MORTGAGE – LOAN POLICY (ALTA 45)
The rate for this endorsement shall be five percent (5%) of the Original Rate for the Loan Policy as set forth in PR-2 hereof, for the policy to which it is attached and is in addition to the policy premium.

Modified Endorsement Rates (modifying language underlined):

ER-36 ENERGY PROJECT – LEASEHOLD / EASEMENT – OWNER’S POLICY (ALTA FORM 36) 
The Rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-36.1 ENERGY PROJECT – LEASEHOLD / EASEMENT – LOAN POLICY (ALTA FORM 36.1)
The Rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-36.2 ENERGY PROJECT – LEASEHOLD – OWNER’S POLICY (ALTA FORM 36.2) 
The Rate for this endorsement is $500.00 and is in addition to the premium for the Policy.

ER-36.3 ENERGY PROJECT – LEASEHOLD – LOAN POLICY (ALTA FORM 36.3) 
The Rate for this endorsement is $500 and is in addition to the premium for the Policy.

ER-36.4 ENERGY PROJECT – COVENANTS, CONDITIONS AND RESTRICTIONS – LAND UNDER DEVELOPMENT – OWNER’S POLICY (ALTA FORM 36.4)
The Rate for this endorsement is fifteen percent (15%) of the Original Rate for the Policy. The minimum premium is $500 and is in addition to the premium for the Policy.

ER-36.5 ENERGY PROJECT – COVENANTS, CONDITIONS AND RESTRICTIONS – LAND UNDER DEVELOPMENT – LOAN POLICY (ALTA FORM 36.5)
The Rate for this endorsement is fifteen percent (15%) of the Original Rate for the Policy. The minimum premium is $500 and is in addition to the premium for the Policy.

ER-36.6 ENERGY PROJECT – ENCROACHMENTS (ALTA FORM 36.6)
The Rate for this endorsement when issued with a Loan policy is ten percent (10%) of the Original Rate for the Policy, and is in addition to the premium for the Policy. The minimum premium is $500. The Rate for this endorsement when issued with an Owner’s policy is fifteen percent (15%) of the Original Rate for the Policy. The minimum premium is $500 and is in addition to the premium for the Policy.

Agents please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your system.

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

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