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 | 5 2006 ALTA OWNER’S POLICY 2021 ALTA OWNER’S POLICY COMPARISON (v. 07-30-2021) COMMENTS 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 2. RightsAny power of eminent domain. This Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7 or 8. SAME. 3. Defects, liens, encumbrances, adverse claims, or other matters 3. Any dDefects, liens, encumbrances, adverse claims, or other matters: SAME. (a) created, suffered, assumed, or agreed to by the Insured Claimant; (a). created, suffered, assumed, or agreed to by the Insured Claimant; SAME. (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (b). not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; SAME. (c) resulting in no loss or damage to the Insured Claimant; (c). resulting in no loss or damage to the Insured Claimant; SAME. (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (d). attaching or created subsequent to the Date of Policy (however, thisExclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 andor 10); or CLARIFICATION. (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. (e). resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured Claimantnamed in Schedule A as a bona fide purchaser had paid valuebeen given for the Title at the Date of Policy. IMPROVED COVERAGE. The modified coverage matches what has recently been explained as the purpose of Exclusion 3.e.: to exclude matters based upon the failure of the insured to pay sufficient consideration in order to be a “bona fide purchaser” under the recording laws, as opposed, for example, to the effect of the failure to pay reasonably equivalent or fair market value. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is a: SIMILAR. (a) a fraudulent conveyance or fraudulent transfer; or (a). a fraudulent conveyance or fraudulent transfer; or SAME. b. voidable transfer under the Uniform Voidable Transactions Act; or SIMILAR. This addition is intended to modernize the ALTA 2021 policies by referring to the Uniform Voidable Transactions Act, which has been adopted in at least 19 states and is an amended version of the Uniform Fraudulent Transfer Act. (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. (b)c. a preferential transfer for any reason not stated in Covered Risk 9 of this policy.: SAME. i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or CLARIFICATION. The 2006 and 2021 ALTA Owner’s Policies exclude liability for a voidable preference claim arising out of the transaction vesting the Title because the transfer was not a contemporaneous exchange for new value given to the debtor (regardless of the subsequent timing of recording). ii. for any other reason not stated in Covered Risk 9.b. SAME. Exclusion 4.c.ii . of the 2021 ALTA Owner’s Policy is the same as Exclusion 4(b) of the 2006 ALTA Owner’s Policy. 5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8. NEW EXCLUSION. Covered Risk 8 of the 2021 ALTA Owner’s Policy insures with respect to enforcement of a PACA-PSA Trust (as defined in the Conditions), but only to the extent of the enforcement described in an Enforcement Notice. The Perishable Agricultural Commodities Act (7 U.S.C. §§ 499a, et seq.) imposes a trust under 7 U.S.C. § 499e(c) for unpaid suppliers, sellers and agents of fresh fruits and fresh vegetables, The Packers and Stockyards Act (7 U.S.C. §§ 181, et seq.) establishes a similar trust on assets of packers to protect livestock producers. These risks were generally excepted from coverage in Schedule B but are now addressed through Covered Risk 8 and this Exclusion.