VA Policy Authorization Construction Loan Non-MLA Site

POLICY AUTHORIZATION
CONSTRUCTION LOAN • NON-MLA SITE

Date: ______________________________               Borrowers: ___________________________________

To:  __________________________________                     Property: ____________________________________

Policy Amount:  $ _________________________ l/a                          _______________________________, County

You are hereby authorized to issue our commitment/policy for the above referenced case.  This authorization is subject to the following instructions. 

a)      As to the proposed Loan Policy only, you may extend affirmative mechanics’ lien coverage in accordance with Stewart Title Guaranty Company’s Mechanic’s Lien Coverage Policies and Procedures.

b)      Obtain Indemnity Agreement I executed by:

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

c)      The fully executed Agreement must be in your file PRIOR to your issuance of the Policy and the first draw endorsement.

d)      YOU MUST RETAIN THE ORIGINAL EXECUTED INDEMNITY AGREEMENT IN YOUR FILE.

e)      At each draw request, you must have subcontractor/supplier Waiver of Liens for all work done or materials furnished through the previous draw;

f)       AND, the Interim Affidavit and Agreement executed by the Owner and General Contractor.  If you do not have all required waivers in hand, YOU MAY NOT CLEAR THE NEXT DRAW. 

g)      YOU MUST USE THE FOLLOWING PENDING DISBURSEMENT CLAUSE AND DRAW ENDORSEMENT:  ______________ PEND & _______________ END. 

h)      YOU  MUST USE DISBURSEMENT PROCEDURE:  _______

i)        YOU MUST CHARGE AND REMIT BY SEPARATE REGISTER THE $1.00/$1,000.00 EXTRAHAZARDOUS RISK FEE FOR THIS COVERAGE ALONG WITH A COPY OF THIS AUTHORIZATION.  ________ YES ________ NO

OTHER:  1) Obtain copy of draw request and lender’s inspection at each draw;    __________________________

_________________________________________________________________________________________

This approval is contingent upon your firm promptly notifying Stewart Title Guaranty Company if any mechanic’s/materialmen’s liens are filed of record or if other indications of the subject builder’s distress become apparent.  Please contact the undersigned if you have any problems or questions regarding this procedure.

STEWART TITLE GUARANTY COMPANY

By: _____________________________________