FNTIC ALTA Policy Comparisons

ALTA LOAN POLICY COMPARISON CHART This comparison chart is intended as a guide to identifying differences between the 2021 and 2006 ALTA policies. It should not be relied upon for the interpretation of these policies. Updated 07-14-2021 ALTA LOAN POLICY COMPARISON CHART Page | 4 2006 ALTA LOAN POLICY 2021 ALTA LOAN POLICY COMPARISON (v. 7-30-2021) COMMENTS a. the amount of the principal disbursed as of the Date of Policy; Indebtedness, subject to the Exclusions and the Exceptions. Available Endorsements can expand the priority coverage for future advances or disbursements (e.g., ALTA 14 Series). b. the interest on the obligation secured by the Insured Mortgage; c. the reasonable expense of foreclosure; d. amounts advanced for insurance premiums by the Insured before the acquisition of the estate or interest in the Title; and e. the following amounts advanced by the Insured before the acquisition of the estate or interest in the Title to protect the priority of the lien of the Insured Mortgage: i. real estate taxes and assessments imposed by a governmental taxing authority; and ii. regular, periodic assessments by a property owners’ association. 11. The lack of priority of the lien of the Insured Mortgage upon the Title 11. The lack of priority of the lien of the Insured Mortgage upon the Title: SAME. (a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (a). as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for servicesservice, labor, or material, or equipment arising from construction of an improvement or work related to the Land when the improvement or work is either: SIMILAR. The 2021 ALTA Loan Policy clarifies coverage by adding “service” and “equipment,” which are words included in the mechanics’ lien coverage of the ALTA 32 Series (Construction Loan) endorsements. (i) contracted for or commenced on or before Date of Policy; or (i). contracted for or commenced on or before the Date of Policy; or SAME. (ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; and (ii). contracted for, commenced, or continued after the Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on the Date of Policy to advance; and SAME. (b) over the lien of any assessments for street improvements under construction or completed at Date of Policy. (b). over the lien of any assessments for street improvements under construction or completed at the Date of Policy. SAME. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. SAME. 13. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title 13. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title, or the effect of a court order providing an alternative remedy: IMPROVED COVERAGE. This creditors' rights coverage addresses and provides coverage relating to transactions occurring prior to the transaction creating the interest being insured. The 2021 ALTA Loan Policy improves the coverage by extending the phrase, “the effect of a court order providing an alternative remedy” to both the coverage of 13.a. and 13.b. Section 550(a) of the Bankruptcy Code authorizes an alternative remedy in allowing the bankruptcy trustee to “…recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property.”