CLTA News
November 20, 2012
CLTA Files New Forms
Commercial Participation Interest
The CLTA has filed CLTA Endorsement Form 135.1-06 addressing a lender’s commercial participation interest in a commercial context. The endorsement provides new optional coverage for lenders in the event participation interest is a feature of the loan transaction. Participation interest is defined as being linked by a formula to a borrower’s equity appreciation or cash flow.
Mechanics’ Lien
New CLTA Form 137.2-06 provides coverage that is not conditioned upon disbursement by the title insurer or with the title insurer’s consent. Existing endorsement coverage extents to situations where direct payment to the Mechanics’ Lien claimant is made by the title company or the insured with the title company’s written consent.
Residential Limited Coverage Junior Loan Policy
ALTA previously adopted the ALTA Residential Limited Coverage Junior Loan Policy. However, the ALTA Loan Policies were revised in 2006, and revisions of the Junior Loan Policy and JR endorsements were needed to provide consistency. Minor changes also were made to the Endorsement JR 1 and Endorsement JR 2.
