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: SC2021005
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Bulletin: SC2021005
Dear Associates:
The 2021 ALTA Loan Policy and the 2021 ALTA Owner’s Policy include a new Covered Risk 8 for Notices of Enforcement of the PACA-PSA Trust recorded in the Public Records.
The 2021 ALTA Owner’s and Loan Policies include a new PACA-PSA Exclusion and definition of PACA-PSA Trust that is a substitute for the prior PACA-PSA exception that has often been used. The Exclusion avoids the need for a specific Schedule B exception:
2021 ALTA Owner’s Policy Exclusion 5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.
2021 ALTA Loan Policy Exclusion 7. Any claim of a PACA-PSA Trust. Exclusion 7 does not modify or limit the coverage provided under Covered Risk 8.
2021 ALTA Policy Definition. “PACA-PSA Trust”: A trust under the federal Perishable Agricultural Commodities Act or the federal Packers and Stockyards Act or a similar State or federal law. (2021 ALTA Owner’s Policy)
The 2006 ALTA Owner’s Policy and the 2006 ALTA Loan Policy do not include the PACA-PSA Exclusion and you should continue to use the PACA-PSA exception where applicable when issuing the 2006 ALTA Policy, as described in our PACA-PSA Bulletin SLS2014001.
If the PACA-PSA Exclusion does not appear relevant to the transaction as described in our PACA-PSA Bulletin SLS2014001, and the customer requests deletion of the PACA-PSA Exclusion from the 2021 ALTA Owner’s Policy or the 2021 ALTA Loan Policy, please contact a Stewart Title Guaranty Company Underwriter. A Stewart Title Guaranty Company Underwriter may approve issuance of the STG Deletion of PACA-PSA Exclusion Endorsement to the 2021 ALTA Owner’s or the 2021 ALTA Loan Policy.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- None