Mechanic's Lien Indemnities

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					                              Basic Underwriting Information
Introduction ................................................................................................................................. 2

Contacts - West Region Underwriting Department........................................................... 3

High Liability Approvals ........................................................................................................... 5
     REQUEST FOR POLICY APPROVAL ............................................................................... 5

Mechanic’s Lien Indemnities .................................................................................................. 7
     MECHANIC’S LIEN INDEMNITIES INSTRUCTIONS ...................................................... 8
     MECHANIC’S LIEN LOSS OF PRIORITY QUESTIONNAIRE ....................................... 9
     WAIVER OF LIEN PERIOD QUESTIONNAIRE ............................................................. 10
     MECHANIC’S LIEN INDEMNITY REQUEST FOR APPROVAL .................................. 11
     INDEMNITY AGREEMENT ................................................................................................ 12
     MECHANICS’ LIEN COVERAGE - COMMERCIAL MORTGAGES ............................ 14

Secured Indemnities ............................................................................................................... 15
     DEPOSIT/WITHDRAWAL REQUEST .............................................................................. 16
     SECURED INDEMNITY REQUEST FOR APPROVAL ................................................. 17
     INDEMNITY AGREEMENT ................................................................................................ 18
     INTEROFFICE MEMORANDUM ....................................................................................... 22

Underwriting Bulletins ............................................................................................................ 27
     Bulletin No. 1 Trust Certificates ......................................................................................... 28
     Bulletin No. 2 California Community Property Rules ...................................................... 29
     Bulletin No. 3 Disclosure of Omitted Liens ....................................................................... 32
     Bulletin No. 4 Inspections on 1-4 Family Property .......................................................... 33
     Bulletin No. 5 CC&R Notice ................................................................................................ 34
     Bulletin No. 6 Judgment Liens - Expiration ...................................................................... 36
     Bulletin No. 7 Indemnities from Title Companies ............................................................ 37
     Bulletin No. 8 Streamlined Searching ............................................................................... 38
     Bulletin No. 9 Gramm-Leach-Bliley ................................................................................... 40
     Bulletin No. 10 GI Runs on Buyers (So. California) ........................................................ 44
     Bulletin No. 11 High Risk Transactions ............................................................................ 45

Rev. 6-12-07




                                                                       1
                                        Introduction

This package provides some basic underwriting forms and information. It does not purport to be
an exhaustive treatment of underwriting issues, which is better left to bodies of work such as the
CLTA Manual.

The attached forms are the paper versions that are designed to be printed and filled out by hand.
Versions of the forms that are designed to be filled out on a computer can be obtained from your
friendly underwriter or on Roger Therien’s semi-official West Region web site at
http://westregion.com

The Underwriting Bulletins describe matters that have arisen fairly recently, including modern
procedures that are designed to increase the efficiency of title operatio ns. Some of these new
procedures involve assuming risks which we believe are outweighed by our increased efficiency
and competitiveness.




                                                2
                 Contacts - West Region Underwriting Department
  NOTE: You should first contact the underwriter for your county or state. If that person is unavailable
  (after a reasonable response time), you should try to contact another underwriter in the same underwriting
  office. Finally, you can contact any underwriter in any office.

Name               Phone & Fax             Email                              Primary Underwriting
                                                                              Responsibility
                                                Glendale Office
                              655 North Central Ave., Suite 2200, Glendale, CA 91203
Avi Miron          Ph: 818-552-7240        amiron@newcenturytitle.com            New Century Title (underwriting &
                   FAX: 818-265-0636                                              general legal)
                                                                                 Commonwealth: Kern & Los
                                                                                  Angeles
Lorraine Casas     Ph: 818-552-7232        lcasas@landam.com                     Administrative Assistant
                   FAX: 818-265-0622

                                                Pasadena Office
                                  55 S. Lake Ave., Su ite 600, Pasadena, CA 91101
Ed Beierle         Ph: 626-844-5177        ebeierle@landam.com                HAWAII STATE COUNSEL
                   FAX: 626-304-9159                                           Lawyers: Los Angeles
                                                                               HAWAII: All agents
                                                                               Regulatory & general legal

Bill Hunter        Ph: 626-844-5154        bhunter@landam.com                 NEVADA STATE COUNSEL
                   FAX: 626-304-9159                                           Directs: Orange, San Bernardino,
                                                                                Riverside, Ventura, El Centro
                                                                               NEVADA: Directs & agents:

Roger Therien      Ph: 626-844-5176        rtherien@landam.com                Regional Counsel, West Region
                   FAX: 626-304-9231
Peggy Krutsch      Ph: 626-844-5171        pkrutsch@landam.com                Administrative Assistant
                   FAX: 626-304-9231

                                              San Francisco Office
                         One Market St., Spear To wer, Su ite 1850, San Francisco, CA 94105
Laura Lowe         Ph: 415-247-2409        llowe@landam.com                   WEST REGION AGENCY
                   FAX: 415-520-0880                                          COUNSEL
                                                                               AZ Agents: Pima County, AZ
                                                                               CA Agents: All EXCEPT Orange
                                                                                Coast – Inland Empire & San Diego,
                                                                                Home Connects, North American –
                                                                                Stanislaus & Fresno




                                                       3
                                                San Diego Office
                         3131 Camino Del Rio No rth, Suite 1400, San Diego, CA 92108
Tom Ruhrup        Ph: 619-725-3229        truhrup@landam.com                     So. Cal. Directs: San Diego, Santa
                  FAX: 619-374-7056                                               Barbara, Gateway and Southland
                                                                                 No. Cal. Directs: All
                                                                                 Default Services
                                                                                 Builder Services
                                                                                 Production Centers: No. & So. Cal.
                                                                                 Agents: Orange Coast – Inland
                                                                                  Empire & San Diego, North
                                                                                  American – Stanislaus & Fresno,
                                                                                  Home Connects
                                      Phoenix Office – Camelback Road
                                   2901 E. Camelback Road, Phoenix, AZ 85016
Larry Phelps      Ph: 602-954-0222        lphelps@capitaltitle.com            Capital Title Agency, Inc.
                  FAX: 602-954-0099                                           Underwriting Counsel
Susan Neff        Ph: 602-954-0222        sneff@capitaltitle.com              Capital Title Agency, Inc.
                                                                              Legal Assistant
Maria Bueno       Ph: 602-954-0222        mbueno@capitaltitle.com             Capital Title Agency, Inc.
                                                                              Legal Assistant
                                        Phoenix Office – Central Ave.
                                1850 N Central Ave., Su ite 1200, Phoenix, AZ 85004
Diane Flaaen      Ph: 602-257-2768        dflaaen@landam.com                  ARIZONA STATE COUNSEL
                  FAX: 602-282-3663
Scott Peterson    Ph: 602-282-6005        scottppeterson@                     ARIZONA Asst. State Counsel
                  FAX: 602-282-3663       landam.com
Linda Hall        Ph: 602-257-2682        lindahall@landam.com                ARIZONA Legal Secretary
                  FAX: 602-282-3663

  The CLAIMS DEPARTMENT is not part of West Region Legal Resources, although they
  share office space with Legal Resources staff in the Pasadena office. Claims should be submitted
  to:
  Steve Bauer, Claims Center Manager, Pasadena Claims Center
  55 S. Lake Ave., Suite 600, Pasadena, CA 91101
  Ph: 626-844-5113
  sbauer@landam.com
  Denise Franklin (Assistant)
  Ph: 626-844-5119
  Fax: 626-304-9579
  dfranklin@landam.com




                                                       4
High Liability Approvals




           5
                                         REQUEST FOR POLICY APPROVAL
                                                  LandAmerica Financial Group
 Office/Agent:                                                                                   Order No.:
  Title Officer:                                                                                 City, State:
   Telephone:                                  FAX:                                                  County:

 1. Insurer:                                                                       Expected Closing Date:
 2. Type of Owner's:                                                   Amt: $
      Type of Lender's:                                                Amt: $
      Other Policy:                                                    Amt: $
      Endorsements (Owner):
      Endorsements (Lender):
      Name: Insured Buyer/Borrower:
      Name: Insured Lender:
 3. Title search and examination is based upon:
                A search from patent to date of attached report/commitment.
                Prior Policy:
                                        Type                        Company                        Date               Amount
 4. Type of property and improvements:
 5.                                               Does this order involve a loss of priority issue?             Yes       No
                       NOTE: Mechanics' lien indemnity requires a separate Indemnity Approval
 6.                    Does the land abut an open public street? (If no, explain access in #13, below.)         Yes       No
 7.                                                 Is there any body of water on or bounding the land?         Yes       No
 8.                  Any uninsured conveyances since last owner's insurance? (If yes, attach copies.)           Yes       No
 9.         Any item eliminated without a reconveyance or release? (If yes, explain in #13, below.)             Yes       No
10.                                                                                        Survey provided?     Yes       No
11.                                                                                      Inspection made?       Yes       No
12.              Are there any unusual title risks such as Indian lands, railroads, patent reservations,
                                          lot splits, foreign parties, etc.? (If yes, explain in #13, below.)   Yes       No
13. Describe the transaction and any known title issues, problems or unusual risks (use next sheet if necessary):




14. ATTACH COPIES OF PRELIMINARY REPORT OR COMMITMENT, MAP AND PERTINENT DOCUMENTS

           APPROVAL                    Title Officer:                                           Date:
       RECOMMENDED                      ATO/CTO:                                                Date:


      APPROVED, subject to the following:




      LandAmerica Financial Group, West Region

           By:                                                                     Date:
Rev. 01-02-07

                                                                   6
Mechanic’s Lien Indemnities




             7
                            MECHANIC’S LIEN INDEMNITIES
                                  INSTRUCTIONS

Three forms for mechanic’s lien indemnity approvals are attached. The check boxes at the top of
the forms are intended to make the forms self-explanatory. This allows a busy title or escrow
officer to simply fax a questionnaire with minimal explanation. These forms are available in two
versions, one which is designed to be filled out by hand and the other using form fields which are
designed to be filled out on a computer.
Also attached are an indemnity form and a memo from John Rapp, LandAmerica’s Chief
Underwriting Counsel.

1. Construction Loan Loss of Priority (LOP) Questionnaire
   This form is intended to be filled out by the customer and needs to be user- friendly enough
   for a customer to deal with on his own. An employee who interviews a loan officer or the
   developer can also fill it out.
   This questionnaire, along with the documents described next to the checkboxes, should be
   sufficient for 95% of our transactions. There is a note at the bottom of the form stating that
   additional information will be required for complex transactions.

2. Waive r of Lien Period (WOLP) Questionnaire
   Like the LOP questionnaire, this is intended to be filled out by the customer and needs to be
   user-friendly enough for a customer to deal with on his own. An employee who interviews
   the developer can also fill it out.

3. Mechanic’s Lien Inde mnity – Request for Approval
   This is the approval form to be signed by the Title Officer, CTO and Underwriting
   Department. If the LOP and WOLP questionnaires were always filled out by employees, the
   approval could be made a part of those forms. But as I see it, we need to keep the
   questionnaires separate so that customers can complete them.

4. Indemnity Agreement

5. Memo: Mechanic’s Lien Coverage - Comme rcial Mortgages




                                                8
                    MECHANIC’S LIEN LOSS OF PRIORITY QUESTIONNAIRE


Issuing Office: ___________________________________                      Date: _______________________

Project Name: ___________________________________                        Order No.: ___________________
Please enclose the following:       Signed Indemnity Agreement
                                    Financial Statement (or Loan Application)
                                    Construction Cost Breakdown or Loan Budget

1. Describe the project: _____________________________________________________________
    Describe the current stage of construction: ____________________________________________
    Number of units: _________ Square footage of each unit: ___________________
    Est. completion date: ____________________ Est. value on completion: $__________________
    Built in phases? _______ If so: Number of phases: ______ Separate construction loans? _______
2. Name of owner or developer: ______________________________________________________
3. Name of general contractor, if any: __________________________________________________
4. Name of construction lender: ______________________________________________________
5. Cost of land: $______________ Date acquired: ______________ Current equity: $____________
6. What is the amount of the construction loan? $_____________________
    Amount of construction loan for actual construction: $__________________
    Amount of construction loan for loan fees, interest reserves and other fees: $_________________
    Does the construction loan include a land draw? ______ If so, state amount: $________________
7. Is the loan amount sufficient to complete construction? ________ If not, describe funds to complete:
    Amount: $________________ Source: _______________________________________________
8. Who will control the disbursement of construction funds? _________________________________
    Describe the disbursement control for construction funds: ________________________________
                                                               (e.g. vouchers, draws, etc.)


Prepared by: _______________________________________

Address:        _______________________________________

                _______________________________________

Telephone       _______________________________________


For complex high-liability transactions additional documentation may be nec essary, such as the construction
contract, loan agreement, project proforma, price list, maps, market analysis, lender’s loan commitment, etc.

Rev. 2-19-03


                                                        9
                            WAIVER OF LIEN PERIOD QUESTIONNAIRE


Issuing Office: ___________________________________                Date: _______________________
Project Name: ___________________________________                  Order No.: ___________________
Please enclose the following:     Signed Indemnity Agreement
                                  Financial Statement (or Loan Application)
                                  List of unpaid bills


1. Type of improvements: ___________________________________________________________
2. Is the project complete? _________
    If so, has a Notice of Completion been recorded? _________
    If not: What is the expected date of completion? ___________________
               What is the source of funds to complete? ________________________________________
3. Amount of undisbursed construction loan funds: $__________________
4. Amount of unpaid bills: $__________________ (attach list)
5. What was the amount of the construction loan? $__________________
7. Name of construction lender: ______________________________________________________
8. What was the lender’s system of disbursement control? _________________________________
                                                            (e.g. vouchers, draws, etc.)
9. Was there a loss of priority for the construction loan? _________




Prepared by: _____________________________              Address: _____________________________

Telephone: ____________________________                 _____________________________________




Note: In some cases, the underwriter may require lien releases from contractors and suppliers.
Rev. 2-26-02




                                                   10
                            MECHANIC’S LIEN INDEMNITY
                             REQUEST FOR APPROVAL

                      Loss of Priority   OR         Waiver of Lien Period


Issuing Office: _________________________________           Date: ____________________
Title Officer: ___________________________________          Order No.: ________________
Telephone: _____________________ Fax: _____________________

Attach copies of:       Indemnity Agreement
                        LOP or WOLP Questionnaire
                        Indemnitors’ Financial Statement (or Loan Application)
                        Preliminary Report or Commitment
                        Construction Cost Breakdown (LOP only)
                        List of Unpaid Bills (WOLP only)
                        Additional Documentation

Policy Type                 Name of Insured                            Amount
______________________ __________________________________ $_______________
______________________ __________________________________ $_______________
Estimated Closing Date: _____________________________
Describe the transaction and any problems or unusual circumstances:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Approval Recommended:         Title Officer: __________________________________
                                ATO/CTO: __________________________________

                       LandAmerica Financial Group, West Region
APPROVED, subject to the following:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

By___________________________________              Date: _____________________________




Rev. 2-26-02

                                              11
                                                                                     Order No. __________________

                                                                                 Indemnity No. __________________

                                         INDEMNITY AGREEMENT
                                                 (Mechanics’ Liens)


This Indemnity Agreement is entered into by and between the un dersigned (hereinafter referred to as “Indemnitor”)
whos e name is set forth on the signature page hereof, and [ INSE RT: Commonwealth Land Title Insurance
Company, a Pennsylvania corporation OR Lawyers Title Insurance Corporation, a Virginia corporation]
(hereinafter referred to as the “Company”) with reference to the following facts:
         A. Indemnitor has requested Company to issue its policy of title insurance insuring an interest in or title to
certain real property described in Exhibit A attached hereto, (hereinafter referred to as the “property”) without
exception t o or providing c ertain affirmative insuranc e against statutory liens for labor or material attaching to or
gaining priority over the interest of the Insured, (hereinaft er referred to as “mechanics ’ liens”).
        B. Company is unwilling to issue such policy unless indemnified by Indemnitor as hereinafter provided.
Indemnit or has, as an inducement to Company, offered to indemnify Company against loss or damage which
Company may become liable for by reason of providing affirmative insurance against loss sustained or incurred
under such policy by reason of mechanics’ liens.
In consideration of t he foregoing facts and of the issuance by Company of its policy of title insurance as aforesaid,
Indemnit or hereby indemnifies and holds Company harmless from and against any and all claims, losses,
damages, liabilities and expenses, including but not limited to attorneys’ fees and expenses of litigation suffered or
incurred by Company under its policy or policies of title insurance or otherwise, on account of the omission or
deletion of, or affirmative insurance against, mechanics’ liens.
Indemnit or further agrees as follow:
        1. Indemnitor shall timely file Notices of Completion covering any works of improvement on t he property if
such notices are provided for by law in the state where the property is situated and in accordance with such law.
          2. Company may at any time after any mechanic’s lien has been of record for thirty (30) days, or after a
suit to foreclose any mechanic’s lien has been commenced, require Indemnitor upon ten (10) days’ written notice to
record a statutory releas e of lien bond or s urety bond or to otherwise release the property from any such
mechanic’s lien. Company may, without notice to Indemnitor, pay, satisfy, compromise or do any other act
necessary in its judgment to obtain a release or discharge of any such mechanic’s lien. Indemnitor hereby
authorizes and empowers Company t o advance and pay any sums necessary t o obtain a releas e, discharg e or
satisfaction of any such mechanic’s lien. Notwithstanding anything herein which may be construed to the contrary,
Indemnit or agrees that Company shall not have to pay, incur or sustain monetary loss in any amount before being
entitled to call upon Indemnitor to provide to Company funds necessary to pay, satisfy, compromise or do any other
act necessary to obtain a release or discharge of any mechanic’s lien or ot herwise satisfy Company’s obligations
under such policies; and Indemnitor agrees to reimburse Company for any amounts advanced by Company
together with int erest at the rat e of ten percent (10%) per annum from the date of such advance.
        3. Indemnitor shall diligently provide for the defense of any and all actions to foreclose any mechanic’s
lien. Company shall have the right to select and approve any and all counsel who may be retained by Company or
by Indemnitor to defend any such action and Indemnit or shall promptly pay all fees and expenses of the counsel so
selected or approved by Company.
         4. Company may rely upon this Agreement in issuing any policies whether or not Indemnitor is the person
ordering the same, regardless of any change in ownership of or the title to the property or any portion thereof or any
change in the nat ure of Indemnito r’s interest in the same. The issuance of any such policies in t he manner desired
by Indemnitor may cause Company to deem it necessary or expedient for practical business reasons to issue other
policies covering the property without showing therein as mat ters not insured against mechanics’ liens or actions
based thereon or to provide indemnities to ot her title insurers to induce them to issue such policies. Consequently,
the obligations of Indemnit or hereunder shall not be limited to the policy initially issued on the property or portions
thereof, but shall apply also to any policies of title insurance subsequently issued on the property or portions thereof


                                                          12
and to any indemnities provided to ot her title insurers. Nothing cont ained herein shall be construe d as an obligation
on the part of Company to issue any policy of title insurance. However, if Company does issue any policy of title
insurance as requested by Indemnitor, then the Indemnitor gives the assurances and indemnities as provided by
this Agreement.
         5. Indemnitor warrants the accuracy and truthfulness of all financial statements and other information
submitted to Company to induce Company to rely on this Agreement. Indemnitor shall promptly advise Company in
writing of any material change in Indemnitor’s financial condition.
      6. The term policy or policies of title insurance as used herein shall be deemed to include any binder,
commitment, preliminary report, policy, guarantee or endorsement.
         7. This A greement shall be liberally construed in the interest of and for the protection of the Company.
This Agreement shall be governed and construed in accordance with the laws of the state in whic h the property is
situated and if any provision hereof is held to be void or unenforceable under said laws, this Agreement shall not be
voided or vitiated thereby but shall be construed to be enforced with the same effect as though such provision were
omitted.
        8. The liability of the Indemnitor under this Agreement is direct and primary and is not conditioned o r
contingent upon prior purs uit of any remedies by Company. Indemnitor shall be liable and s hall promptly pay to
Company all costs, expenses and attorneys’ fees incurred by Company in enforcing any of its rights hereunder.
         9. This Agreement shall be binding upon the Indemnitor and each of them, their heirs, assigns and legal
successors and shall inure to the benefit of Company, its successors and assigns, including without limitation any
other ins urer involved in reins uring in any manner any liabilities of Company under any policy or policies to which
this Agreement relates and any agent or underwritten Company of Company which issued such policy or policies.
          10. In this A greement wherever the context so requires, the singular number includes the plural, and
where there is more than one person included as Indemnitor, the obligations of this Agreement shall be binding on
all such persons jointly and severally. If any Indemnitor is not bound hereunder for any reason this Agreement shall
still be binding upon the other Indemnit ors.


Dated: ___________________________


INDEMNITOR

__________________________________________                      _________________________________________


__________________________________________                      _________________________________________


ADDRESS

__________________________________________                      _________________________________________

__________________________________________                      _________________________________________

PHONE NO. (          ) ________________________                 PHONE NO. (          ) _______________________




                                                          13
            MECHANICS’ LIEN COVERAGE - COMMERCIAL MORTGAGES
                                                 John Rapp
                                                  8/16/2000

Experience has shown that the following information will ensure that our evaluation of the risk is likely to
result in an underwriting decision appropriate to both the customer and the Company. In other words, we
will be able to substantially reduce the possibility of either rejecting a good risk or accepting a bad one. In
no particular order of importance, the relevant factors for consideration are listed below:

1. Nature of Project - certain types of projects have historically been less likely to result in Mechanics’
Lien claims.
2. Identity of Developer – again, individuals or organizations possessing substantial experience in the
construction of similar projects in the past are more likely to continue to do so successfully.
3. Identity of General Contractor and Construction Lender – frequently, if the developer is not the general
contractor, prior projects may have involved the same general contractor and construction lender as the
current project.
4. Build to Suit, Pre-Leasing or Purchase Contract – absent unusual circumstances, most successful
construction projects will involve pre-leasing, build to suit, or contracts to purchase final product such as
are common in cogeneration projects.
5. Evidence of Equity Investment – the greater the required percentage of equity investment the more
likely it is that the project will be successfully completed.
6. Contractors Bonding Requirements – here, we are especially interested in whether Payment Bonds are
required of the general contractor and/or major subcontractors. The absence of a bonding requirement is
not necessarily a negative. It may suggest that the contractor’s track record warrants the elimination of
such a requirement.
7. Construction Budget – the itemization of construction costs will confirm the adequacy of funds to
complete the project. Further, it should disclose the amount of labor and materials already furnished and
paid for at the time of closing. Finally, it should disclose the portion of funds to be used for the purchase
of machinery and equipment. This latter item is of special significance in connection with the construction
of cogeneration plants.
8. Identity of Indemnitor and Financials – to the extent that the developer and contractors have been
involved previously in similar successful projects, we will remain flexible in our requirements with regard
to the identity of the Indemnitor, as well as the contents of the balance sheet. However, it is appropriate to
request the Indemnity from the same individuals or organizations required to provide guarantees to the
lender.
9. Pending Disbursements Clause/Interim Waivers or Releases – in most instances we will require date
downs of title prior to each advance in order to insure continuing priority over mechanics’ liens. Further,
depending upon the circumstances of a particular case we may require production of waivers, releases, or
affidavits of payment at the time of each draw.
10. Loan Commitment Letter – requirements imposed by the lender’s letter as a precondition to the
making of the loan will normally address many of the Items listed above.

If the amount of the Loan Policy to be issued is less than $5 million the Underwriting review and
approval process will be conducted within the Region according to high liability guidelines. Beyond $5
million, the relevant information must be submitted to the Headquarters Underwriting Department.




                                                      14
Secured Indemnities




         15
                                        DEPOSIT/WITHDRAWAL REQUEST
                                              Secured Indemnity

To:       Karen Hyatt, Administrative Manager                            Date: _______________________
          LandAmerica Financial Group/West Region
          4 Hutton Center Drive, Suite 1050
          Santa Ana, CA 92707
          Phone: 714-560-8540 Fax: 714-560-0325

From:           Name:       ________________________________________
           Company:         ________________________________________
                Office:     ________________________________________
               Phone:       ________________________________________

      File/Order No.:       ________________________________________
       Indemnity No.:       ________________________________________
         Title Officer:     ________________________________________

Indemnitors: Names:             ____________________________________________________________
                  Address for refund check: ________________________________________________
                                                ________________________________________________

                          DEPOSIT                                           WITHDRAWAL
Please deposit these funds into an interest-              Please release funds to this office from the above-
bearing account pending resolution of the matters         referenced indemnity as follows:
described in the secured indemnity agreement.
The following items are enclosed:                         1. Reason funds can be released: ___________
                                                          _______________________________________
     Trust Account Check No. _______________             _______________________________________
      in the amount of $_____________________
                                                          2. Amount to release:
      (Make check payable to Commonwealth Land Title
      Company or Lawyers Title Company, as applicable)           All funds: $_______________________,
     W-9 signed by indemnitor(s)                                 plus interest, OR

     Copy of signed indemnity agreement                         Portion of funds: $___________________

                          Signatures:                                         Signatures:



______________________________________                    ______________________________________
Type name:                                                Type name:

Approved by:                                              Approved by:

______________________________________                    ______________________________________
Type name:                                                Type name:




                                                         16
                                  SECURED INDEMNITY
                                REQUEST FOR APPROVAL


Issuing Office: _________________________________               Date: ____________________
Title Officer: ___________________________________              Indemnity No.:_____________
Telephone: _______________ Fax: _________________               Order No.: ________________

Attach copies of:         Indemnity Agreement
                          Indemnitor's Financial Statement
                          Preliminary Report or Commitment
                          Additional Documentation

Policy Type                   Name of Insured                                Amount
______________________ __________________________________ $_______________
______________________ __________________________________ $_______________
Estimated Closing Date: _____________________________
Indemnitor(s): _______________________________________________________________
___________________________________________________________________________

Collateral: ________________________

Describe the transaction, the nature of the risk and Release Date, if any:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Approval Recommended:            Title Officer: __________________________________
                                  ATO/CTO: __________________________________

                         LandAmerica Financial Group, West Region
APPROVED, subject to the following:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

By___________________________________                Date: _____________________________




Rev. 6-21-02



                                                17
                                                                          Indemnity No. _________________
                                                                              Order No. _________________


                                      INDEMNITY AGREEMENT
                                        Security Agreement - Pledge


         This Indemnity Agreement is entered into by and bet ween the undersigned (hereinafter referred
to as “Indemnitor”) whose name is set forth on the signature page hereof, and [INSERT: Commonwealth
Land Title Insurance Company, a P ennsylvania corporation OR Lawyers Title Insurance
Corporation, a Virginia corporation] (the “Title Company”), with reference to the following facts:
         A. Indemnitor has requested Title Company to issue its policy of title insurance insuring interest in
and/or title to real property described in Schedule A attached hereto (such property is hereinafter referred
to as the “Insured Premis es”) without exception t o or providing c ertain affirmative insurance against the
matter set forth as the Exception in Schedule A attached hereto (hereinafter referred to at the
“Exception”).

        B. Title Company is unwilling to issue such policy unless indemnified by Indemnitor as hereinafter
provided. Indemnitor has, as an induc ement to Title Company, offered to indemnify Title Company
against loss or damage which Title Company may become liable for by reason of providing affirmative
insurance against loss sustained or inc urred under such policy by reason of the Exception.

In consideration of the foregoing facts and of the issuance by Title Company of its policy of title insurance
as aforesaid, Indemnitor hereby indemnifies and holds Title Company harmless from and against any and
all claims, losses, damages, liabilities and expenses, including but not limited to attorneys' fees and
expenses of litigation suffered or incurred by Title Company under its policy or policies of title insurance
or ot herwise, on account of the omission or deletion of, or affirmat ive insurance in connection with, the
Exception.

Indemnitor further agrees as follow s:

         1. Indemnitor shall take suc h action as is necessary to timely remove, satisfy or discharge the
Exception prior to the Release Date, if any, set fort h on the signature page hereof. If at any time Title
Company deems it necessary in order to satisfy its obligations under suc h policy, it may, in its sole
discretion, without notice to Indemnitor, pay, satisfy, compromis e or do any other act, including but not
limited to commencement of litigation, necessary in its judgment to obtain a release or discharge of the
Exception. Indemnitor hereby authorizes and empowers Title Company to advance and pay any sums
necessary to obtain a release, discharge or satisfaction of t he matters set forth as the Exception.
Notwithstanding anything herein which may be construed to the contrary, Title Company shall not have to
pay, incur or sustain monetary loss in any amount before being entitled to call upon Indemnitor t o provide
to Title Company funds necessary to pay, satisfy, compromise or do any other act necessary to obtain a
release or discharge of the Exception or otherwise satisfy Title Company's obligations under such policy
and Indemnitor shall promptly furnis h such funds so demanded. Indemnitor shall reimburse Title
Company for any amounts advanced by Title Company pursuant to this Agreement t oget her with interest
at the rate of ten percent (10% ) per annum from the date of such advance.

         2. Indemnitor s hall diligently provide for the defe nse of any and all actions referred to in or based
upon the Exception. Title Company shall have the right to select and approve any and all counsel who
may be retained by Indemnitor or Title Company to defend any such action and Indemnitor shall promptly
pay all reasonable fees and expenses of the counsel so selected or approved by Title Company, or
alternatively, Title Company shall have the option to use or apply all or any part of t he collateral (defined
below), or disburse proceeds of the collateral, to pay such fees, costs and expenses.




                                                      18
         3. To secure performance of all of Indemnit or's obligations, duties, agreements and promises
under this Agreement, Indemnitor delivers to Title Company the funds set forth on the signature page
hereof (hereinafter referred to as “collateral”), toget her with all interest earned on the collat eral, and any
other money or property which Indemnitor is or may hereafter become entitled to receive on account of
the collateral pursuant to the California Uniform Commercial Code (hereinafter referred to as the “UCC”).
Title Company shall be entitled to all rights and remedies of a secured party under the UCC and any other
California law. If Indemnitor provides a completed I.R.S. Form W -9, the collateral while held by Title
Company shall be held in an interest bearing account in the name of Title Company in a bank insured by
the FDIC. Income and risk of loss to the collateral while on deposit in such int erest bearing account shall
accrue to Indemnitor. Title Company may, at any time, without notice, and at Indemnitor's expense,
compromise or settle any claims affecting Title Company's rights in t he collateral or Title Company’s
rights under this Agreement. In the event of Indemnitor’s breach or default under the terms of this
Agreement, Title Company shall have the right to use or apply all or any part of the collateral, or disburse
proceeds of the collateral, to obtain a release or discharge of the Exception. Indemnitor further authorizes
Title Company, without notice or demand and with out affecting Indemnitor’s liability under this Agreement,
from time t o time, to (a) hold as additional security any profits or increases in the c ollateral and apply the
additional security to the discharge or release of the Exception; (b) apply the collat eral or ot her sec urity
and direct the order or manner of dis position as Title Company in its discretion may determine; (c) release
or substitute the Indemnitor or any other person obligated under this Agreement; (d) pay reasonable
attorneys’ fees and legal expenses incurred by Title Company; and (e) disburse the balance of the
collateral, the balance of the interest accrued on t he collateral, and the balance of the additional security,
if any, to Indemnitor. Indemnitor waives any right to require Title Company to (a) proceed against any
person; (b) proceed against or exhaust any collat eral; or (c) pursue any ot her remedy in Title Company’s
power.

           4. Title Company may rely upon t his Agreement in issuing any policies whether or not Indemnitor
is the person ordering the same, regardless of any change in owners hip of or the title to the Insured
Premises or any portion thereof or any change in the nature of Indemnitor's interest in the same. The
issuance of any such policies in the manner desired by Indemnitor may cause Title Company to deem it
necessary or expedient for practical business reasons to issue other policies with respect to the Insured
Premises without s howing therein as matters not insured against the Exception or actions based thereon
or to provide i ndemnities to other title insurers to induce them to issue such policies. Consequently, the
obligations of Indemnitor hereunder shall not be limited to the policy or policies initially issued with res pect
to the Insured Premises or portions thereof but shall apply also to any policies of title insurance
subsequently issued with respect to the Insured Premises or portions thereof and to any indemnities
provided to other title insurers. Nothing contained herein shall be construed as an obligation on the part of
Title Company to issue any policies of title insurance. However if Title Company does issue any policies
of title insuranc e as requested by Indemnitor then the Indemnitor gives the assurances and indemnities
as provided by this Agreement. The term policy of title insurance as used herein shall be deemed to
include any binder, commitment, preliminary report, policy, guarantee or endorsement.

         5. Indemnitor warrants the accuracy and truthfulness of all financial statements and other
information submitted to Title Company by Indemnitor t o induce Title Company to rely on this Agreement.
Indemnit or shall promptly advise Title Company in writing of any material adverse c hange in Indemnitor's
financial condition.

        6. This Agreement shall be liberally construed in the interest of and for the protection of the Title
Company. This Agreement shall be governed and construed in accordance with the laws of the state in
which the Insured P remises is situated and if any provision hereof is held to be void or unenforceable
under said laws, this Agreement shall not be voided or vitiated thereby but shall be construed to be
enforced with the same effect as though such provision were omitted.

        7. The liability of the Indemnitor under this Agreement is direct and primary and is not conditioned
or contingent upon prior pursuit of any remedies by Title Company. Indemnit or shall be liable and shall
promptly pay to Title Company all reasonable costs, expenses and attorneys' fees incurred by Title
Company in enforcing any of its rights hereunder.


                                                       19
           8. This Agreement shall be binding upon the Indemnitor its successors and assigns and shall
inure to the benefit of Title Company, its successors and assigns, agents and underwritten title
companies, including without limitation any other insurer involved in reinsuring in any manner any
liabilities of Title Company under any policy or policies of title insurance to which this Agreement relat es.

         9. All notices to be given hereunder shall be in writing and mailed postage prepaid by certified or
registered mail, return receipt requested, or delivered by personal delivery, to Indemnitor's address and
Title Company's address which are set forth herein, or t o such other place as Indemnitor or Title
Company may designate in a written notice given to the other party. Notices, if personally delivered, shall
be deemed rec eived upon delivery, and if mailed, shall be deemed received three (3) days after the date
of mailing.

         10. In this Agreement wherever the context so requires, the singular number includes the plural,
and where there is more than one person included as Indemnitor, the obligations under this Agreement
shall be binding on all such persons jointly and severally. If any Indemnitor is not bound hereunder for any
reason, this Agreement shall still be binding upon the other Indemnitors.


                                Release Date: ______________________

                                Collateral: $________________________

NOTE: You must provide Title Company with a completed I.R.S. Form W -9 in order for funds to be
                            placed in an interest-bearing account.




Dated: _____________________________


INDEMNITOR:


_______________________________________                    _____________________________________


TELEP HONE: _____________________________

ADDRESS:        ________________________________________

                ________________________________________



_____[ Insert name of underwriter]_____
Attn: Indemnity Department
4 Hutton Centre Drive, Suite 1050
Santa Ana, CA 92707-5707
TEL: 714-560-8540
FA X: 714-560-0325


Rev. 6/21/02




                                                     20
                                            Schedule A

                                                            Order No. _________________
                                                         Indemnity No. _________________



The Insured Premises is described as follows:




Exception:




                                                21
                                                        INTEROFFICE
                                                       MEMORANDUM
55 South Lake Avenue, Suite 600
Pasadena, CA 91101
TEL: 626-844-5177


DATE:     June 21, 2002

TO:       All West Region Branches, Underwritten Title Companies and Agents


FROM:     Edward R. Beierle
          Counsel, Western Region

RE:       Indemnities


This Memorandum sets forth the procedures to be followed and forms to be used in
connection with the acceptance and reliance upon indemnities when issuing policies of
title insurance or endorsements thereto. All LandAmerica branches, agents and
underwritten title companies are required to submit all Requests for Indemnity Approval
to the West Region Underwriting Department unless authority to approve indemnities
has previously been delegated to someone else. The procedures and forms referred to
herein will become effective on July 1, 2002 and all requests for indemnity approval
submitted on and after said date must conform to these procedures. The changes to
the indemnity process involve new forms of Request for Indemnity Approval and
Indemnity Agreements as well as new procedures for handling collateral which the
Company holds to secure obligations under indemnity agreements. Copies of this
Memorandum should be given to all persons involved in preparing and submitting
Requests for Indemnity Approval as well as all title officers and escrow officers.

Indemnities are not the appropriate basis for assuming all types of risks or resolving all
types of problems. Risks involving liens or other matters which may be eliminated by the
payment of a sum of money and which will be resolved within the foreseeable future
(within 3 to 4 years) lend themselves to being resolved through the use of indemnities
more so than other types of risks. This does not mean, however, that we will never
accept indemnities as the basis for insuring against other types of risks. Furthermore,
indemnities should not be considered as the only means of addressing requests for
insurance against mechanics' liens, tenant's rights, etc., to the exclusion of obtaining
evidence of payment, subordination or waiver of lien rights, examining copies of leases
or other forms of documentation of the termination or nonexistence of such matters.




                                            22
NEW FORMS

Attached are copies of the following new forms to be used in connection with
indemnities:

   Indemnity Agreement (Mechanics’ Liens)
      Commonwealth Land Title Insurance Company
      Lawyers Title Insurance Corporation
      Transnation Title Insurance Compa ny

   Indemnity Agreement, Security Agreement - Pledge
      Commonwealth Land Title Insurance Company
      Lawyers Title Insurance Corporation
      Transnation Title Insurance Company

   Request for Indemnity Approval-General
   Request for Indemnity Approval-Mechanics’ Liens
   Loss of Priority Questionnaire
   Waiver of Lien Period Questionnaire

MAINTENANCE OF INDEMNITY FILES AND NUMBERING SYSTEMS

Separate files should be maintained for each indemnity request for approval. The files
should contain the original indemnity agreement, request for indemnity approval and
supporting documentation. Copies of the indemnity agreement and request for
indemnity approval should also be placed in each title file to which the indemnity relates.
Indemnity files should be retained for 5 years after the expiration or elimination of the
risk for which the indemnity was given. Each office in the West Region should establish
an indemnity numbering system (if they do not already have one) for all indemnities
The indemnity number should be assigned at the time the indemnity agreement is
prepared and should be typed on the indemnity agreement, all schedules and addenda
thereto and on the Request for Indemnity Approval form. Each indemnity submission
should be assigned its own indemnity number even though the indemnity may not be
approved or the transaction is cancelled.

REQUEST FOR INDEMNITY APPROVAL

The attached form of Request for Indemnity Approval must be completed and submitted
for all indemnity requests. List all policies to be issued in reliance on the indemnity and
include policy type, name of insured and amounts of insurance. If the indemnity is to be
secured indicate the type and amount of collateral. If unsecured, set forth "none" under
collateral. Under "Description of Transaction and Nature of Risk" set forth a brief
description of the transaction, the nature of the risk and how and when the risk will
expire and/or be eliminated.




                                            23
The Request for indemnity Approval form should be submitted with copies of financial
statements (unless indemnity is fully secured), a current preliminary report or
commitment, the completed indemnity form and such other documentation which will
assist in the evaluation of the risk. For mechanic’s lien risks use the Request for
Indemnity Approval-Mechanics’ Liens and attach either the Loss of Priority
Questionnaire or the Waiver of Lien Period Questionnaire depending on the nature of
the mechanic’s lien risk. These forms of questionnaire may be completed either by the
customer or by issuing office personnel after obtaining the information from the
customer, loan officer or other source.

INDEMNITY FORMS

The form of indemnity agreement to be used should be the one for the particular
LandAmerica Financial Group, Inc. title insurer (i.e. Commonwealt h Land Title
Insurance Company, Lawyers Title Insurance Corporation and Transnation Title
Insurance Company) whose policy(ies) is/are being issued in reliance on the indemnity.
The Indemnity Agreement, Security Agreement - Pledge form is a general form of
indemnity agreement which may be either secured or unsecured and which provides
indemnity against loss with respect to the matter(s) set forth as the Exception on
Schedule A. If the indemnity is to be secured by cash collateral, the amount should be
indicated in the blank after the Collateral following paragraph 10. If the collateral is
anything other than cash, such as a letter of credit or a deed of trust, contact the West
Region Underwriting Department for the form of indemnity. If the indemnity is to be
unsecured, type "None" under the collateral on the signature page. The date by which
the Indemnitor is to obtain the removal or release of the Exception should be set forth
after the "Release Date" on the signature page or if there is no such date enter "N/A".
Generally a Release Date should be set forth unless the time for obtaining the removal
or release of the Exception cannot be determined in advance as in the case of pending
litigation. The legal description of the Insured Premises and the Exception must be set
forth on Schedule A. The Exception should describe all matters against which the
indemnity protects. This should be broadly stated to cover all eventualities.

The Indemnity Agreement (Mechanics’ Liens) form is an unsecured indemnity
agreement to be used in connection with mechanic’s lien risks involving either a loss of
priority in connection with loan policies or a waiver of lien period in connection with
owners and/or loan policies. The legal description of the real property must be set forth
on an attached Exhibit A to this form. If there are recorded mechanics' liens to be
insured against in reliance on an indemnity, use general form of indemnity and set forth
the recorded liens under the Exception on Schedule A. If unrecorded liens are also to
be covered, also include the following exception under the Exception:

      Any lien or right to a lien, for services, labor or material heretofore or hereafter
      furnished, imposed by law and not shown by the public records.

Care must be taken in the preparation of these forms so that they form binding
contractual agreements upon execution. All indemnity agreements should contain the



                                           24
complete name of all indemnitors, both on the first page and in the signature lines, their
addresses and telephone numbers and the date of execution. The signature page
should be completed by typing the name of each indemnitor with appropriate signature
lines. The names of individual indemnitors should be typed under their signature lines
and the word "By" should only precede the signatures of persons signing in an agency
or representative capacity. The names of corporate, limited liability company and
partnership indemnitors should be typed above the signature lines of the persons
signing on their behalf in the same manner as on a deed. For example, corporate and
partnership indemnitors' signatures should appear as follows:

XYZ Corporation             ABC, a General Partnership

By: __________________             By: ______________________
       President                   General Partner

By: __________________             By: ______________________
       Secretary                   General Partner

If corporate officers, limited liability company members or partners will also be executing
the indemnity in their individual capacities, their names and "Individually and as (title of
signatory)" should be typed under their signatures or separate signature lines may be
used for them to sign in their individual capacity. The same evidence of authority to
execute an indemnity agreement should ordinarily be obtained as would be the case for
execution of a deed or other contract.


APPROVALS

Approval of an indemnity request will be on the attached Request for Indemnity
Approval form. Following approval and closing of the transaction or transactions to
which the i ndemnity relates, the issuing office must monitor the file until the risk in
question is eliminated. There is no need to send original indemnity agreements to the
West Region Underwriting Department unless specifically requested. If any liens or
actions arise which are the subject of the indemnity the issuing office must contact the
indemnitor and advise the West Region Underwriting Department of the situation and
what action the indemnitor intends to take.


COLLATERAL

All cash collateral held under indemnities will be held in the name of the Title Company.
Whenever an Indemnity Agreement is to be secured with a deposit of cash collateral, a
From W-9 (a copy of which is attached) should be sent with the Indemnity Agreement.
Copies of the Form W-9 and the Instructions for Form W-9 can be down loaded from the
Internal Revenue Service website at www.irs.gov. If a completed Form W-9 is
submitted with the collateral, it will be invested in an interest bearing account in the



                                             25
name of the Title Company as secured party of the Indemnitor. All cash collateral must
be sent to the West Region office of LandAmerica Financial Group, Inc., Attention
Indemnity Department, 4 Hutton Centre Drive, Suite 1050, Santa Ana, CA 92707-5707
(Tel: 714-560-8540), together with a copy of the fully executed indemnity, the
completed form W-9 and the Request for Indemnity Approval. All requests to release or
disburse the collateral must be approved by the West Region Underwriting Department
unless authority to approve indemnities and release of collateral has previously been
delegated to someone else. Such requests should explain the reason for the release or
disbursement of the collateral, the name of the person(s) to whom funds are to be paid,
their addresses and telephone numbers and any other information necessary to
disburse the funds. Copies of any releases or other documents evidencing a release,
satisfaction or discharge of the Exception should also be included. Such requests
should also include the wire transfer information of the Issuing Office. The balance of
the collateral plus any accrued interest will be disbursed to the Issuing Office via check
or wire transfer for disbursement to the Indemnitor or other party to whom payment is to
be made.

MONITORING

The issuing office is charged with monitoring all files closed in reliance on an indemnity
until expiration of the risk covered by the indemnity agreement. In the event of any
action or attempt to enforce or assert the matter which is the subject of the Exception,
the issuing office shall advise the West Region Underwriting of such action or attempt
as soon as possible. Whenever an indemnity is secured by collateral the issuing office
shall advise the person responsible for approving the indemnity when the Exceptio n has
been satisfied or removed or has expired by the expiration of time. After review and
approval by the person who approved the indemnity the Indemnity Department shall be
advised to release the collateral as set forth above.




                                            26
Underwriting Bulletins




          27
                                         Bulletin No. 1
                                       Trust Certificates


DATE:          May 25, 1999

TO:            Branches and Underwritten Companies, West Region

FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region

SUBJECT:       Trust Certificates
               Bulletin No. 99-01


Reliance on Certification of Trust
Where the original trustee(s) are executing a deed or deed of trust, we will rely on a Certification
of Trust under Probate Code Section 18100.5 (which is retained in the title file, but not
recorded). Obtaining a copy of the trust agreement is not necessary unless the trust certification
is being signed by a successor trustee (i.e. the person signing does not appear of record) or there
is anything unusual about the transaction.
Reason: Probate Code Section 18100.5 provides adequate protection


Waiving require ment of Certification of Trust
Where all of the original trustees/settlors who originally conveyed title to themselves as trustees
of their own family trust are conveying or encumbering residential property as trustees of t he
same trust, we will not require any documentation regarding the trust.
Reason: We will rely on the bona fide purchaser protection of Probate Code Section 18100.




                                                28
                                    Bulletin No. 2
                        California Community Property Rules

                               How to use this outline:
 Each of these three pages describes a different situation. First, determine which page
  contains the applicable situation, then read the rules and exceptions on that page.


                                  Community Property
                                         I.


                                         Situation

1. Title was acquired before marriage
   OR
2. Title was obtained by a decree of distribution (before or after marriage)
   AND (in addition to either 1 or 2)
3. We are insuring a subsequent sale or loan




                                          Rules

1. A quitclaim deed from the spouse of the titleholder is not necessary.
2. Liens against the spouse may be ignored.
3. These rules apply even if subsequent documents show that the titleholder is a
   married person (e.g. the titleholder executed a deed from “titleholder as a single
   person” to “titleholder as a married person”).




                                        Exceptions

1. Document executed by spouse: If the chain of title contains a document executed by
   the spouse, usually a deed of trust, quitclaim deed or homestead, this might indicate
   an assertion of an interest in PIQ. Show all liens affecting the spouse and obtain a
   quitclaim deed from the spouse, unless approved by counsel.
2. Lis Pendens: If a lis pendens appears of record pertaining to dissolution of marriage,
   a quitclaim deed from the spouse is required.




                                            29
                                  Community Property
                                         II.




                                         Situation

1. Title is being acquired by a person in his/her own name during marriage
   AND
2. We are insuring the initial acquisition




                                   Loan Policy Rules.

1. A quitclaim deed from the spouse is required. A separate property recital in this deed
   is not needed for this policy, but may be desirable for future transactions.
2. Judgment and tax liens do not need to be shown, regardless of whether they are
   against the spouse or the titleholder. Exception: Federal judgment (not tax) liens
   against either the spouse or titleholder must be shown.
3. Note: These rules apply only to the typical situation where all the loan proceeds are
   used to acquire the property. If any proceeds are used for another purpose, follow
   the rules below under “Owner’s Policy”.




                                 Owner’s Policy Rules.

1. Show all judgment and tax liens against both the titleholder and spouse, and
2. Show the community interest of the spouse as an exception unless a separate
   property recital appears in a quitclaim deed executed by the spouse.
3. Note: These rules also apply to a loan policy where any of the proceeds are used for
   a purpose other than to acquire title.


Definition: “Separate Property recital” means a statement in a deed that says the
property is the “sole and separate property” of the spouse of the grantor.




                                             30
                                 Community Property
                                       III.


                                       Situation
1. The titleholder previously acquired title in his/her own name during marriage
   AND
2. We are insuring a subsequent sale or loan


            Separate property recital appears in a previously recorded
                     quitclaim deed executed by the spouse.
                                         Rules
1. A new quitclaim deed from the spouse is not necessary.
2. Liens against the spouse and title holder must be shown, whether recorded prior or
   subsequent to the quitclaim deed from the spouse.
      On a case-by-case basis, counsel may decide to eliminate liens against the
      spouse recorded subsequent to the spouse’s quitclaim deed.

                                      Exceptions
1. Bankruptcy: Run the spouse, in addition to the titleholder, on the General Index. If
   either party has filed bankruptcy, refer the file to counsel.
2. Document executed by spouse: If the chain of title contains a document executed by
   the spouse who is not in title, such as a deed of trust or homestead, this might
   indicate an assertion of an interest in PIQ. Show all liens affecting the spouse and
   obtain a quitclaim deed from the spouse, unless approved by counsel.
3. Lis Pendens: If a lis pendens appears of record pertaining to dissolution of marriage,
   a quitclaim deed from the spouse is required.


        Separate property recital does not appear in a previously recorded
                        quitclaim deed from the spouse.
1. Show all judgment and tax liens against both the titleholder and the spouse (loan
   and owner’s policies).
2. Sale: A new quitclaim deed from the spouse is required.
3. Loan: We require either 1) another quitclaim deed from the spouse or 2) that the
   spouse joins in the execution of the deed of trust.


Definition: “Separate Property recital” means a statement in a deed that says the
property is the “sole and separate property” of the spouse of the grantor.


                                           31
                                       Bulletin No. 3
                                Disclosure of Omitted Liens



DATE:          May 25, 1999

TO:            Branches and Underwritten Companies, West Region

FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region

SUBJECT:       Disclosure of omitted liens – loan policies
               Bulletin No. 99-03


Situation:
Occasionally, we show a lien as an exception in an owner’s policy and omit it from the
concurrent purchase- money lender’s policy. Normally, the lien is a tax or judgment lien and is
omitted from the lender’s policy based on Civil Code Section 2898, which gives priority to
purchase- money deeds of trust. Other times the validity of the lien is questionable and is omitted
on the basis of an indemnity or a risk decision by the Chief Title Officer or Counsel.


Requirements:
Tax liens and judgment liens (except judgments in favor of the United States) which are not
shown in Schedule B, Part I of a loan policy because of the purchase money nature of the insured
loan, in reliance on an indemnity or pursuant to a risk decision, may, but do not need to be,
shown in Schedule B, Part II. It is also not necessary to otherwise disclose that such a lien has
been omitted. Other matters, such as liens that are subordinated pursuant to a subordination
agreement, must be shown in Schedule B, Part II. Also, if a lender expresses a concern about this
procedure, the lien should be shown in Schedule B, Part II.


Reason:
Trying to make some kind of disclosure about a lien we have already determined to be
ineffective or in junior position usually confuses and delays a transaction at the last minute. A
title policy should not be used as a credit report. It is a contract of indemnity and is not a
representation that the risk insured against will not occur.




                                                32
                                        Bulletin No. 4
                              Inspections on 1-4 Family Property



DATE:          July 1, 1999
TO:            Branches and Underwritten Companies, West Region
FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region
SUBJECT:       Inspections on 1-4 Family Residential Property
               Bulletin No. 99-04


Unde rwriting Rule:

An inspection is not required for the issuance of a:
   1. A Homeowner’s Policy,
   2. An ALTA Residential Policy, or
   3. An ALTA loan policy on one to four family residential property.

Exceptions
An inspection is required where:
1. We receive information about a specific potential problem, such as possible encroachments
   or building permit violations,
2. Access is by means of a “Parcel 2” easement or is otherwise uncerta in,
3. We have reason to believe there is a risk of unrecorded mechanics’ liens,
4. The local office has made a determination that the risk is particularly high for a certain
   geographic area or type of property. (Be careful not to overuse this exception.)

Background
Inspections are an important part of many title orders and often provide information that is
critical in making underwriting decisions. On the other hand, they can be over- used, particularly
in residential transactions. The cost of inspections very often is not justified by their
effectiveness in detecting encroachments and, we expect, in detecting building permit problems.
The Homeowner’s Policy should be issued as our “default” policy on residential property
improved with a 1-4 family residence. The expanded coverage of this policy has caused some
underwriters to require inspections in virtually every transaction. Instead, we should rely on the
built- in nature of the deductibles to keep losses at an acceptable level and, at the same time,
provide the insured with value and peace of mind.




                                                33
                                         Bulletin No. 5
                                         CC&R Notice

DATE:          September 18, 2000
TO:            Branches and Underwritten Companies, West Region
FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region
SUBJECT:       Notice Provided With CC&R’s and Ce rtain Deeds
               AB 1493 (Ch. 291, Stats. 2000)
               Amended Government Code Section 12956.1


This bulletin replaces Underwriting Bulletin No. 99-05 dated Novembe r 30, 1999.

As you will recall, on January 1, 2000 Government Code Section 12956.1 went into effect
requiring a notice to be attached to copies of CC&R’s and deeds provided to customers. The
statute has now been amended. The key changes are that the wording of the notice has changed,
the type size has been reduced and it no longer needs to be printed in red. Please discard your
supply of the old forms. Starting imme diately, you must include the attached notice as the
first page of all copies of covenants, conditions and restrictions, and copies of deeds
containing restrictions, which you provide to anyone.

These are the basic rules:
   1. The notice must be in at least 14-point, boldface type. Since it does not need to be in red,
      you can now prepare the notice on your own computers, then make photocopies. Be sure
      the word processing program uses the correct type size and boldfacing.
   2. The notice must be a cover page or a stamp on the first page.
   3. The notice must be provided with faxed or hard copies of all covenants, conditions and
      restrictions and declarations of restrictions. This also applies to any document, regardless
      of its title, that accomplishes the same purpose as CC&R’s.
   4. The notice must also be provided with faxed or hard copies of all deeds that set forth
      restrictions. Literally, the statute applies to all deeds. However, we will not require it with
      the typical deed containing only a granting clause and a legal description, simply because
      it makes no sense to do so.
   5. Be sure these guidelines are followed, regardless of whether the document is provided by
      customer service, as part of a property profile, by a title unit, by an escrow unit, etc.
   6. The statute does not specifically mention underwritten title companies. We require
      compliance by direct operations operating as underwritten companies. Underwritten title
      companies are free to make their own decision since providing copies of documents is the
      act of the underwritten company and not the underwriter.




                                                34
  This notice is to be attached when you provide copies of CC&R’s or deeds
                             containing restrictions.




                                      NOTICE

       (This notice is required by California Gove rnme nt Code Section 12956.1.)




If this document contains any restriction based on race, color, religion, sex,
familial status, marital status, disability, national origin, or ancestry, that
restriction violates state and federal fair housing laws and is void, and may be
removed pursuant to Section 12956.1 of the Government Code. Lawful
restrictions under state and federal law on the age of occupants in senior
housing or housing for older persons shall not be construed as restrictions
based on familial status.




                                           35
                                     Bulletin No. 6
                                Judgment Liens - Expiration


DATE:          September 12, 2000

TO:            Branches and Underwritten Companies, California

FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region

SUBJECT:       Judgment liens that do not expire after 10 years


Do not eliminate a judgment lien afte r 10 years if any of the following situations applies:

Judgments for child, family or spousal support
Under Family Code Section 4502, judgments for child, family or spousal support last forever
(until paid).
In the case of In re Marriage of Cutler 79 Cal.App. 4th 460 (2000), a judgment lien for child
support recorded in 1966. The court held, 34 years later, that the judgment lien was still valid and
would remain valid until the judgment was paid in full. Note that the obligation to pay child
support ended long ago when the children turned 18, but that the lien continued to secure
payment of past unpaid amounts.

Judgments in favor of the United States
Under 28 U.S.C. §3201 a judgment lien in favor of the United States is valid for 20 years (and
can be renewed). For purposes of this law, the term “United States” means a) a Federal
corporation, b) an agency, department, commission, board or other entity of the United States or
c) an instrumentality of the United States.

Extension of the 10-year lien period whe n the debtor files bankruptcy
Under 11 U.S.C. §108(c), if the 10-year lien period expires while the debtor is in bankruptcy, the
time to renew the judgment is extended until “30 days after notice of the termination or
expiration of the [automatic] stay…” (See In re Spirtos, 221 F.3d 1079 (9th Cir.2000) and In re
Morton, 866 F.2d 561 (2d Cir.1989.))

Renewal of the judgment
A judgment may be extended for an additional 10 years by recording an applicat ion for renewal
pursuant to Code of Civil Procedure Section 683.180.




                                                 36
                                       Bulletin No. 7
                             Indemnities from Title Companies


DATE:          January 19, 2001

TO:            California Direct Operations; California Underwritten Companies

FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region

SUBJECT:       Indemnities for liens prior to full value sale transactions


Obtaining indemnities from other title companies is burdensome. There are times when doing so
is critical, but very often this is simply a time-consuming endeavor where we are already
convinced that a loan secured by a deed of trust was paid off. Our intent with the following
procedure is to stop requesting title company indemnities when we reasonably believe a loan
secured by a prior deed of trust (which will be referred to as the “prior TD”) was paid off.

You may eliminate a prior TD without obtaining an indemnity from the title company that issued
subsequent insurance if the following requirements are met:

1. You are handling a sale or refinance transaction for property containing a single family
   residence, and
2. The prior TD precedes a sale:
   a. where documentary transfer tax was computed based upon the full value of the land, and
   b. with a concurrent deed of trust in favor of a financial institution in an amount equal to at
      least 80 - 90% of the sale price (i.e. it must be a first deed of trust), and
   c. which was insured by a title insurance company, and
3. The prior TD did not secure a construction loan, and
4. There is no other information indicating that the prior TD was not paid off.
        Note: Such information may come directly from the parties to the escrow or from
        recorded documents such as an assignment, modification, notice of default, etc.
        pertaining to the prior TD.
5. This rule may also be applied to any prior monetary lien against the grantor in a full- value
   deed if all of the above requirements are met (except #3 which makes no sense for other
   kinds of liens). You must obtain an indemnity to eliminate an unreleased lien against the
   grantee since many title companies are not doing General Index runs on buyers.

This procedure does not apply to commercial property. If you believe a prior lien was paid off,
but it does not fall within the above rules, you may refer the file to the Chief Title Officer for a
determination on a case-by-case basis as to whether the requirement of an indemnity can be
waived.




                                                 37
                                        Bulletin No. 8
                                   Streamlined Searching


DATE:         February 8, 2001 (Updated August 21, 2002)

TO:           California Direct Operations; California Underwritten Companies

FROM:         Roger Therien
              Senior Underwriting Counsel, Western Region

SUBJECT:      Streamlined Searching for Refinance and Equity Loan Transactions


This bulletin authorizes a streamlined searching procedure for certain refinance and equity loan
transactions on residential property. It is not mandatory, but may be used when you believe it
will expedite your production process, as long as it is acceptable to customers. It will be the
responsibility of each office to monitor customer acceptance of this procedure. Some lenders
may accept the generic exceptions described below and others may not. Some customers have
requested it and some competitors have implemented similar procedures. You should use
standard searching procedures when necessary to meet customers' requirements.

The policy being issued is the same as always, usually an ALTA loan policy. Endorsements are
available under the same circumstances as in any loan transaction, including a CLTA 103.3**.

Under this procedure, you do not need a starter, so the search proce ss will be simplified. The
main items contained in a starter that you cannot obtain by this streamlined process are CC&R’s
and easements. These are covered by generic exceptions for all recorded CC&R’s and
easements.

The theory is that refinance and equity lenders simply do not care about the details of CC&R’s
and easements, which are very standard on residential property. Property taxes will be handled in
the usual manner. Escrow procedures remain the same.

Type of transaction:
   1. Refinance or equity loan transaction, and
   2. The property contains an existing one-to-four family residence (including a
      condominium).

You may omit using a starte r and begin the search with a deed (which will be referred to
below as the “starter deed”) if the following crite ria are satisfied:
   1. The starter deed shows that documentary transfer tax was computed based upon the full
      value of the land, and




                                               38
   2. The starter deed recorded with a concurrent deed of trust in favor of a financial institution
      in an amount equal to at least 80 - 90% of the sale price (i.e. the transaction was an
      ordinary purchase- money transaction financed by a financial institution), and
   3. The starter deed transaction was insured by a title insurance company, and
   4. Neither our transaction nor the transaction accompanying the starter deed involves a
      construction loan, and
   5. Run the General Index on grantees in the starter deed and any subsequent owners, and
   6. Show an Office Information note on the policy issued in our transaction stating that it
      cannot be used as a starter in a subsequent sale transaction (although it is O.K. for a
      subsequent refinance or equity loan transaction).

Show the following exceptions in Schedule B of both the Preliminary Report and the
Policy:
   1. Covenants, conditions and restrictions, if any, appearing in the public records.
   2. Any easements or servitudes appearing in the public records.




**Note: This is off the subject, but is being noted since the 103.3 endorsement was mentioned.
Lenders sometimes request a 103.1 for any easement shown as an exception. It is the wrong
endorsement for an easement which is still in use, such as a utility easement. The 103.1 is
intended for an easement, such as an old floating easement for ditches, which is no longer being
used. However, since lenders do not like listening to this explanation, and since the risk under a
loan policy on residential property is minimal, we often accommodate the lender by issuing a
103.1 instead of a 103.3. We need to be aware that this is not the correct procedure, and that it is
being done only in low risk situations in order to avoid customer relations problems.




                                                39
                                         Bulletin No. 9
                                      Gramm-Leach-Bliley

DATE:          October 1, 2001

TO:            West Region Direct and Agency Operations

FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region

SUBJECT:       Gramm- Leach-Bliley Privacy Law


Direct operations should have already received an email from Headquarters with three
attachments: 1) Privacy Notice Distribution Guidelines, 2) Summary of Privacy and security
Provisions of Gramm- Leach-Bliley and 3) LandAmerica Privacy Policy Notice. The new
procedures described in those attachments are effective July 1, 2001.

Since business is conducted differently in different areas of the country, this memo will explain
how we will implement these procedures in the West Region.

The LandAmerica Privacy Policy Notice is a separate 2-page document (a single 2-sided page is
suggested for hard copies). This will be delivered:

   1. With each Owner’s Policy covering residential property;
   2. With each Loan Policy issued to an individual seller of residential property who carries
      back a purchase money mortgage or deed of trust.
   3. To the seller and buyer (or borrower) in an escrow on residential property.

If you are unsure whether or not the notice is required in a particular situation o r it is impractical
to make the determination, go ahead and send the notice. No harm results from sending too many
notices.

In addition, the following boilerplate notices are to be included, as applicable, in Preliminary
Reports and Commitments, and in Escrow General Provisions (not in title policies).

Include in Preliminary Reports and Commitme nts :

Privacy Notice (15 U.S.C. 6801 and 16 CFR Part 313):

We collect nonpublic personal information about you from information you provide on forms
and documents and from other people such as your lender, real estate agent, attorney, escrow,
etc. We do not disclose any nonpublic personal information about our customers or former
customers to anyone, except as permitted by law. We restrict access to nonpublic perso nal
information about you to those employees who need to know that information in order to provide
products or services to you. We maintain physical, electronic and procedural safeguards that
comply with federal regulations to guard your nonpublic personal information.


                                                  40
Include in Escrow General Provisions :

Privacy Notice (15 U.S.C. 6801 and 16 CFR Part 313):

We collect nonpublic personal information about you from information you provide on forms
and documents and from other people such as your lender, real estate agent, attorney, title
company, etc. We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law. We restrict access to nonpublic
personal information about you to those emp loyees who need to know that information in order
to provide products or services to you. We maintain physical, electronic and procedural
safeguards that comply with federal regulations to guard your nonpublic personal information.

Commercial property and financial institutions

The notices need to be given to individuals who obtain services primarily for personal, family or
household purposes. For example, the notices are not necessary for commercial transactions or
policies insuring financial institutions or corporations. We figure that it is better to send a notice
when it is not needed than to omit a required notice. Accordingly, the notices should be
automatic unless someone makes a conscious decision that the notice is not necessary for a
particular transaction.

Why send a separate notice when one is already included in the Preliminary Report,
Commitment and Escrow Instructions?

Our direct offices and agents are different corporations than the title insurers. Each corporation
must provide notice.

What about starter exchanges?

Some questions have been raised about whether an additional notice called an “opt-out” notice is
required in connection with starter exchanges. It is standard practice in the title industry to
exchange title policies with other title companies in order to accommodate a customer’s
subsequent transaction. As long as starters are exchanged for this purpose, it is my opinion that
the exception in 16 CFR 313.14 applies, which provides: “The requirements for [opt-out and
other more extensive notices] do not apply if you disclose nonpublic personal information as
necessary to effect, administer, or enforce a transaction that a consumer requests or
authorizes . . .”

What about the requirement of shredding documents containing personal information?

The law requiring documents containing personal information to be shredded is an entirely
separate California State law. Coincidentally, both our state and federal legislators are passing
laws on related subjects as fast as they can. I am atta ching a separate memo dated June 5, 2001
pertaining to this state law. It is an update of a previous memo on the same subject. Those of you
in other states are not subject to this separate law. However, shredding documents containing
personal information, rather than tossing them in the trash, is a good idea even without the law.



                                                 41
                    PRIVACY POLICY NOTICE


     Dear LandAmerica Customer:

     The Financial Services Modernization Act recently enacted by Congress has brought many
     changes to the financial services industry, which includes insurance companies and their agents.
     One of the changes is that we are now required to explain to our customers the ways in which we
     collect and use customer information.

     The statement attached to or on the reverse side of this letter is the privacy policy of the
     LandAmerica family of companies. The three largest members of the family – Commonwealth
     Land Title Insurance Company, Lawyers Title Insurance Corporation, and Transnation Title
     Insurance Company – may issue policies and handle real estate closings in virtually every part of
     the country. A number of other companies in the family provide other real estate services, and
     some operate more locally. You may review a list of LandAmerica companies on our website
     (www.landam.com). You may also visit our website for an explanation of our privacy practices
     relating to electronic communication.

     Our concern with the protection of your information has been a part of our business since 1876,
     when the company that is now Commonwealth Land Title Insurance Company issued its first
     policy. We will continue to protect the privacy, accuracy, and security of customer information
     given to us.

     No response to this notice is required, but if you have questions, please write to us:
                                             LandAmerica Privacy
                                             P.O. Box 27567
                                             Richmond, VA 23261-7567.

                                             LandAmerica Companies
LandAmerica Insurance Companies: Commonwealth Land Title Insurance Company, Commonwealth Land Title Insurance Company of
New Jersey, Industrial Valley Title Insurance Company, Land Title Insurance Company. Lawyers Title Insurance Corporation, Title
Insurance Company of America, Transnation Title Insurance Company, Transnation Title Insurance Company of New York
LandAmerica Title Agents (wholly-owned): American Title Company of Dallas and Fort Worth, Austin Title Company, ATACO, Inc.,
Albuquerque Title Company, Atlantic Title & Abstract Company, Capitol City Title Services, Inc., Commercial Settlements, Inc. ,
Commonwealth Land Title Company; Commonwealth Land Title Company of Austin, Dallas, Fort Worth, Houston, Puget Sound, and
Washington; Congress Abstract Corp., Gateway Title Company, Gulf Atlantic, Lawyers Title Company; Lawyers Title of Arizona, El Paso,
Nevada, and San Antonio; New M exico Title Co., Partners Title Company, Pikes Peak Title Services, Property Title Ins. Co., Rainier Title
Company, Southland Title Corporation, Texas OneStop, Texas Title Company, Title Transfer Service, Inc., Transnation Title & Escrow,
Wilson Title Company
LandAmerica Title Agents (partially owned) : Bankers Alliance Title Agency, Biltmore Abstract, CFS Title Insurance A gency, Charleston
Title Agency, Charter Title Company of Fort Bend, Chatham Settlement, E. Title Agency, First Growth-Commonwealth Title Agency, First
Title & Escrow, Inc., Four Star Title Agency, HL Title Agency, Jones & Tatom Title & Trust, Land Canada LTD., Land Title Asso ciates,
Lawyers Title Galveston, Lion Abstract, Longworth Insured, M /I Title Agency, M and M Title Services, National Land Transf er (NJ and
PA), NIA/ Lawyers Title Agency, RE/Affirm Title A gency, Residential Abstract, Residential Title, Sibcy Cline Title A gency, Title Affiliates
of Central Florida, Naples, Clearwater, Graham, Indian River, Orlando, Polk County, Tampa Bay, and West Central Florida; TransOhio
Residential Title Agency, TRI Title Agency, TRI-County Title Agency-M ichigan, Tri-State Title Agency, University Title Services,
Inspections, Appraisals, Mortgage Servicing, and Ancillary Services: Inspectech, Inc., LandAmerica OneStop, Inc., LandAmerica Account
Servicing, Inc., LandAmerica Default Service Co., REalitics, TransAccount Services, Inc.

Form 3391-6 (September 2002)


                                                                    42
                           LANDAMERICA PRIVACY POLICY
What kinds of information we collect. Most of LandAmerica’s business is title insurance, but
there are companies in our family that provide other real estate services to consumers. We
collect information about you, (for instance, your name, address, telephone number), and
information about your transaction, including the identity of the real property that you are buying
or financing. We obtain a copy of any deeds, notes, or mortgages that are involved in the
transaction. We may get this information from you or from the lender, attorney, or real estate
broker that you have chosen. Our title insurance companies then obtain information from the
public records about the property so that we can prepare a title insurance policy. When we
provide closing, escrow, or settlement services, mortgage lending, or mortgage loan servicing,
we may get your social security number, and we may receive additional information from third
parties including appraisals, credit reports, land surveys, escrow account balances, and
sometimes bank account numbers to facilitate the transaction. If you are co ncerned about the
information we have collected, please write to us.

How we use this information. The company giving or specifically adopting this notice does not
share your information with marketers outside its own family. There’s no need to tell us to keep
your information to ourselves because we share your information only to provide the service
requested by you or your lender, or in other ways permitted by law. The privacy laws permit
some sharing without your approval. We may share internally and with nonaffiliated third
parties in order to carry out and service your transaction, to protect against fraud or unauthorized
transactions, for institutional risk control, and to provide information to government and law
enforcement agencies. Companies within a family may share certain information among
themselves in order to identify and market their own products that they think may be useful to
you. Credit information about you is shared only to facilitate your transaction or for some other
purpose permitted by law.

How we protect your information. We restrict access to nonpublic personal information about
you to those employees who need the information to provide products or services to you. We
maintain physical, electronic, and procedural safeguard s that comply with law to guard your
nonpublic personal information. We reinforce the company’s privacy policy with our
employees.

Agents that may be covered by this policy. Often, your transaction goes through a title insurance
agent. Agents that are part of the LandAmerica family are covered by this policy. Agents that
are not part of the LandAmerica family may specifically, in writing, adopt our policy
statement.




                                                43
                                     Bulletin No. 10
                            GI Runs on Buyers (So. California)


DATE:          June 24, 2003
TO:            Southern California Direct and Agency Operations
FROM:          Roger Therien
               Senior Underwriting Counsel, Western Region
SUBJECT:       General Index Runs on Buyers


You are not required to do a General Index run on the buyers in sale transactions where the
conditions set forth below are met. Running GI’s on buyers is still the preferred practice, but you
can stop doing it if it helps you to meet competitive pressure or to increase efficiency.

Our Production Centers do not necessarily need to change what they are presently doing.
Adopting this practice in a Production Center should be done in consultation with the affected
County Managers, but I want to make you aware of the option in case you receive requests to
adopt this practice or you believe it will increase the efficiency of your operation.

It is not necessary to run the General Index on the buye r, for eithe r the buyer’s policy or
the purchase-money lender’s policy, if the following three conditions are met:

   1. The transaction is for the sale of one-to- four family residential property, and

   2. The purchase money deed of trust from the buyer to the lender is recorded simultaneously
      with the deed to the buyer, and

   3. The financing is only for purchase money and normal closing costs.
      (NOTE: You may treat a buyer’s equity loan, recorded simultaneously with the purchase,
      as a purchase money loan.)

NOTE:

   1. Where this practice has been adopted, starters are not reliable for General Index purposes,
      so you need to run the General Index on all owners shown in a starter. Of course, you
      also need a GI run on anyone else appearing in the chain of title subsequent to the starter.

   2. Always run the GI on the borrower in a refinance transaction.

   3. In Northern California we are still studying this issue and have not adopted this practice.




                                                44
                                       Bulletin No. 11
                                   High Risk Transactions


DATE: January 10, 2004

TO:        West Region Direct and Agency Operations

FROM: Roger Therien
    Senior Underwriting Counsel, Western Region

SUBJECT:       High Risk Transactions


Issuing title insurance in the types of transactions listed below involves an unusually high
incidence of claims, mainly due to the involvement of distressed property or situations that do
not involve normal sale or loan transactions. These are high-risk situations requiring the
approval of Management.

EXCEPTION: Occasionally, management pre-approves regular customers who are engaged in
transactions such as insuring through tax and foreclosure sales, or insuring deeds in lieu of
foreclosure. However, these are limited to situations where management makes a d etermination
in advance that the risks are low for particular customers.

Note that this list is not exhaustive, but represents the most common high-risk situations that
often appear, on the surface, to be simple transactions.


                                   High Risk Transactions
                               Requiring Manage ment Approval

1. Any transaction where there is no formal escrow (a lender handling its own closing is O.K.).
2. Insuring a grantee or lender where we were not involved in the initial sale or loan transaction
   (i.e. an uninsured deed or mortgage).
3. Insuring a purchaser at a foreclosure, execution or tax sale.
4. Insuring when a tax deed or sheriff’s deed appears in the chain of title and there has been no
   subsequent owner's insurance.
5. Insuring a grantee named in a deed in lieu of foreclosure.
6. Any transaction which is not a bona- fide, arms-length transaction.
7. Insuring a “hard money” mortgage in favor of individuals (or their trusts), or in favor of a
   lender who can be expected to assign to individuals. Often, but not always, these are
   “multiple-beneficiary” loans.




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