FNTIC ALTA Policy Comparisons

ALTA OWNER’S 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 04-15-2021 ALTA OWNER’S POLICY COMPARISON CHART Page | 3 2006 ALTA OWNER’S POLICY 2021 ALTA OWNER’S POLICY COMPARISON (v. 07-30-2021) COMMENTS 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental forfeiture, police, regulatory, or national security power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that noticedescribed by the enforcing governmental authority in an Enforcement Notice. BROADENED COVERAGE. The 2021 ALTA policies include the added “forfeiture,” “regulatory,” and “national security” power in Covered Risk 6 and in Exclusion 1.b. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 7. TheAn exercise of the rightspower of eminent domain if, but only to the extent: a notice of the exercise, describing any part of the Land, is recorded in the Public Records. SAME. The 2021 ALTA policies include a new defined term “Enforcement Notice” and revised defined term “Public Records.” a. a notice of the exercise, describing described any part of the Land, is recorded in an Enforcement Noticethe Public Records.; or 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 8. b. Anythe taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. SAME. 8. An enforcement of a PACA-PSA Trust, but only to the extent of the enforcement described in an Enforcement Notice. NEW COVERAGE. The 2021 ALTA Owner’s Policy includes a new defined term “PACA-PSA Trust” and provides coverage if the Public Records contain an Enforcement Notice as of the Date of Policy. 9. Title being vested other than as stated in Schedule A or being defective 9. The Title being vested other than as stated in Schedule A, orthe Title being defective, 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 Owner’s Policy clarifies the coverage by insuring against loss or damage by a court order providing an alternative remedy. 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.” (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors’ rights laws; or (a). as a result of resulting from the avoidance, in whole or in part, or from a court order providing an alternative remedy, of a of any transfer of all or any part of the titleTitle to the Land or any interest in the Land occurring prior to the transaction vesting the Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors’ rights laws; or: UPDATED COVERAGE. i. fraudulent conveyance, fraudulent transfer, or preferential transfer under federal bankruptcy, state insolvency, or similar state or federal creditors’ rights law; or SAME. ii. voidable transfer under the Uniform Voidable Transactions Act; or UPDATED COVERAGE. In 2014, the National Conference of Commissioners changed the Uniform Fraudulent Transfer Act to the Uniform Voidable Transactions Act and substituted “voidable transaction” for “fraudulent transfer.” The 2021 ALTA policies provide coverage pertaining to this updated Act. (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors’ rights laws by reason of the failure of its recording in the Public Records (b). because the instrument of transfer vesting the Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar state or federal creditors’ rights lawslaw by reason of the failure of its recording in the Public Records: SAME.