Guideline: ALTA Endorsement 27 (Usury)

Explanation:

The Usury Endorsement is issued only in conjunction with a Loan Policy. This endorsement insures against loss by reason of the invalidity or unenforceability of the lien of the insured mortgage resulting from violation of the usury laws of a specific state in effect at date of policy.

ALTA 27-06 is designed to be issued with a 2006 ALTA Loan Policy.  ALTA 27 (07-01-21) contains modifications to align the endorsement to the terms of the 2021 ALTA Loan Policy and is designed to be issued with the 2021 Loan Policy.  Where available, use the version of the endorsement designed for the applicable policy, unless approved by a Stewart Title Guaranty Company underwriter.  It is not necessary to indicate “-06” or the parenthetical (date) on the endorsement attached to the policy.

Underwriting Requirements:

1. This endorsement is not available in all states.  This endorsement may not be issued without approval from Stewart underwriting personnel.  This endorsement may only be issued where available, and it cannot be issued in Florida, Idaho, Kansas, Missouri, New Jersey, New Mexico, New York, Oregon, Pennsylvania, or Texas.

2. This endorsement may be issued on a business loan in a commercial transaction if the loan exceeds $25,000, except in the following states:

Arkansas - secure approval from our underwriting personnel

California - secure approval from our underwriting personnel

Colorado - add exception at the end of the provision to "except any claim that the rate of interest exceeds 45% per annum".  See also CO Usury Endorsement.

Delaware - the loan must exceed $100,000

Georgia - the loan must be $250,000 or more

Hawaii - the insured mortgage must be a first lien

Louisiana - add exception at the end of the provision to "except any claim that an increase in the interest rate after default violates applicable law"

Maryland - the loan must exceed $75,000

Massachusetts - add exception at the end of the provision to "provided that notice is given under MGL Chapter 271, section 49"

Michigan - the loan must be $100,000 or more, or must be made to a domestic or foreign corporation

Minnesota - the loan must be $100,000 or more, or must be made to a corporation (which includes a corporation, limited liability company and limited partnership)

Montana - secure approval from our underwriting personnel (MT ALTA 27 Endorsement is only used when there is a non-regulated lender; otherwise, the standard ALTA 27 Endorsement should be used)

Nebraska - the loan must be made to a corporation, partnership, limited liability company, or trust

North Carolina - the loan must be made to a foreign or domestic corporation, limited liability company, or partnership substantially engaged in commercial pursuits for pecuniary gain

North Dakota - the loan must exceed $35,000, or the loan must be made to foreign or domestic corporation, foreign or domestic limited liability company, cooperative corporation or association, or trust

Ohio - the loan amount must exceed $100,000, or must be a business loan such as to a limited partnership, foreign or domestic limited liability company, or domestic or foreign corporation

Oklahoma - add exception at the end of the provision to "except any claim that the rate of interest exceeds 45% per annum"

Puerto Rico - secure approval from our underwriting personnel

Rhode Island - secure approval from our underwriting personnel

Tennessee - secure approval from our underwriting personnel

Vermont - the loan must be made to a corporation, or be incurred to finance in whole or in part income-producing business or activity

Wisconsin - the loan must be made to a corporation or limited liability company, or the loan amount must exceed $150,000

3. In some of the above states, additional usury exemptions may apply, and should be discussed with our underwriting personnel.  If the state insurance department does not allow title companies to provide usury coverage, this endorsement should not be issued. 

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.