Bulletin: TX2024006

Dear Associates:

Effective November 1, 2024, TDI has promulgated the T-55 series of endorsements for use in Energy Projects. The series consists of six endorsement variations: T-55 through T-55.5. The variation of the endorsement depends upon the underlying real property interest. The T-55 (Owner) and T-55.1 (Loan) apply to combined leasehold and easement estates, while the T-55.2 (Owner) and T-55.3 (Loan) apply exclusively to a leasehold estate. The T-55.4 (Owner) and T-55.5 (Loan) are used for fee simple estates. A slight difference in language reflects the nature of the underlying estates.

The T-55 series of endorsements generally provide the measure of damages when an insured party is evicted or ejected from the Land. The endorsements provide that the calculation of loss or damage may include various defined components of the Energy Project.

In conjunction with this new series of endorsements, TDI also amended Procedural Rule P-72 to provide guidelines for issuing the T-55 series endorsements. The rule requires:

• the Land is not residential real property;
• Severable Improvements that would constitute an Electricity Facility are affixed to the Land, or to be affixed to the Land in locations according to the Plans (terms are defined within the form);
• The estate or interest in the Land that is insured is for an owner’s and/or loan policy and includes the following:
  • both a leasehold estate and easement estate,
  • a leasehold estate, or
  • a fee simple estate; and
• the insurer’s underwriting requirements are met.

Rate Rule R-37 is also adopted, effective November 1, 2024, and provides that the premium for the T-55 series endorsement is 5% of the Basic Premium Rate for the Policy.

What you should do:

• Determine that the project qualifies as an Electricity Facility.
• Issuance of any of these endorsements requires Stewart Title Guaranty Company Senior Underwriter approval.
• The overall transaction generally requires approval by Stewart’s Senior Underwriting Committee. You should allow time to obtain such approvals.
• Please submit with your Overlimits request, a current survey, and a copy of the Plans if the Electricity Facility is under construction or is to be constructed in the future.
• Further requirements may be made upon review of the information submitted.

This bulletin provides general information about the endorsement form only and does not provide a full analysis of coverage.

These forms have been provided to third-party title production system (TPS) vendors. Please contact your TPS vendor or account services representative to have the new/revised forms 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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