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 | 12 2006 ALTA LOAN POLICY 2021 ALTA LOAN POLICY COMPARISON (v. 7-30-2021) COMMENTS (D) successors to an Insured by its conversion to another kind of Entity; (Dd). successorsthe successor to the Title of an Insured byresulting from its conversion to another kind of Entity; SIMILAR. This additional language in the 2021 ALTA Loan Policy does not alter the coverage that was provided in the 2006 ALTA Loan Policy, but does clarify that the Insured is a person that holds the Title as a successor. (E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (Ee). athe grantee of an Insured under a deed delivered without payment of actual valuable consideration conveyingor other instrument transferring the Title, if the grantee is an Affiliate; IMPROVED COVERAGE. The 2021 ALTA policies no longer condition the application of the definition of the Insured on a deed to an affiliate “delivered without payment of actual valuable consideration.” (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the named Insured, (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the named Insured, SIMILAR. The definition of “Affiliate” in the 2021 ALTA policies incorporates this provision. (2) if the grantee wholly owns the named Insured, or (2) if the grantee wholly owns the named Insured, or SIMILAR. The definition of “Affiliate” in the 2021 ALTA policies incorporates this provision. (3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly- owned by the same person or Entity; (3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly- owned by the same person or Entity; SIMILAR. The definition of “Affiliate” in the 2021 ALTA policies incorporates this provision. (f). an Affiliate that acquires the Title through foreclosure or deed-in-lieu of foreclosure of the Insured Mortgage; or IMPROVED COVERAGE. The 2021 ALTA Loan Policy includes an Affiliate that acquires the Title regardless of whether the Affiliate owned or held the Indebtedness. (F) any government agency or instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not; (Fg). any Government Mortgage Agency or Instrumentality.government agency or instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not; SIMILAR. The 2021 ALTA Loan Policy uses the new defined term “Government Mortgage Agency or Instrumentality.” (ii) With regard to (A), (B), (C), (D) , and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the Indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter insured against by this policy. (ii). With regard to (A), (B), (C), (D) ,Conditions 1.j.i.(a). and (E) reserving, however, 1.j.i.(b)., the Company reserves all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the Indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by this policy. SIMILAR. The protection afforded a purchaser for value without Knowledge applies only to Conditions 1.i.i.(a) and 1.i.i.(b) of the 2021 ALTA Loan Policy, so this change has no substantive effect. iii. With regard to Conditions 1.j.i.(c)., 1.j.i.(d)., 1.j.i.(e)., and 1.j.i.(f)., the Company reserves all rights and defenses as to any successor or grantee that the Company would have had against any predecessor Insured. SIMILAR. The persons named in these subsections remain subject to defenses that apply to the predecessor Insured under the 2021 ALTA Loan Policy. (f) “Insured Claimant”: An Insured claiming loss or damage. (f)k. “Insured Claimant”: An Insured claiming loss or damage arising under this policy. SAME. (g) “Insured Mortgage”: The Mortgage described in paragraph 4 of Schedule A. (g)l. “Insured Mortgage”: The Mortgage described in paragraphItem 4 of Schedule A. SAME.