DEPARTMENT OFREGULATORYAGENCIES
Division ofInsurance
3CCR 702-8
Concerning TITILEINSURANCE
ProposedNewRegulation8-1-2
TITLEINSURANCECONSUMERPROTECTION
Section1Authority
Section2ScopeandPurpose
Section3Applicability
Section4Definitions
Section5RulesRegardingConsumerProtection
Section6Severability
Section7Enforcement
Section8EffectiveDate
Section9History
AppendixAGoodFundsAgreement
Section1Authority
Thisregulationis promulgatedandadoptedbytheCommissionerof Insuranceundertheauthorityof §§10-1-108(7),10-1-109,10-3-131,and 10-3-1110, C.R.S.
Section2ScopeandPurpose
Thepurposeof thisregulationis toensurethatconsumersreceivethebenefitsof competitioninthearea of title insuranceandtoensureconsumerprotection.
Section3Applicability
Thisregulationgovernstitleentitiesanddoesnotextendthe regulatoryauthorityoftheColoradoDivision of Insurance(“Division”)to anypersonotherthantitleentitiesorpersonstransactingthebusinessof title insurance.
Section4Definitions
A.“Applicationfortitleinsurance”means,forthepurposesof thisregulation,receiptbyalicensed titleentityof anorderforatitleinsurancecommitmentorothertitle insuranceproductsthat containinformationaboutallpartiesanddetailsconcerningatitle insurancetransaction.
B.“Availableforimmediatewithdrawalasamatterof right”hasthesamemeaningasfound at §38-35-125(1)(c), C.R.S.
C.“Businessof title insurance”hasthesamemeaningasfound at §10-11-102(3),C.R.S.
D.“Closingagent”means,forthepurposesof thisregulation,anyandallpersonsemployedor contractedtoperformclosingandsettlementservicesonbehalfof atitleentity.
E.“Closinginstructions”or“writteninstructions”mean,forthepurposesof thisregulation,a document,signedbyone (1)ormorepartiestoatitle insurancetransaction,whichpurportstodirect atitleentityinthecompletionof settlementservices.
F.“Commitment”or“titlecommitment”mean,forthepurposesof thisregulation,areportfurnished inconnectionwithan applicationfortitle insurance,whichisastatementof therequirements, terms,andconditionsuponwhichthetitle insurancecompanyiswillingtoinsureaninterestin a subjectproperty.
G.“Division”means,forthepurposesof thisregulation,theColoradoDivisionof Insurance.
H.“Errorrate”means,forthepurposesof thisregulation,thepercentageof applicablefilesreviewed duringamarketconductactionthatcontainedone(1) ormoreexceptionsorviolationsof the applicablestatuteorregulation.
I."Financialinstitution"hasthesamemeaningasfound at §38-35-125,C.R.S.
J.“Genericexceptions”means,forthepurposesof thisregulation,broadexceptionsona commitmentorpolicyof titleinsurancethatdonotrefertoaspecificdocumentor recording informationandarenotstandardorpreprintedexceptions oraspecificexception.
K.“Person”hasthesamemeaningas found at §10-2-103(8),C.R.S.
L.“Rate”,forthepurposesof thisregulation,meansexpensesasdefinedin§10-4-402(1.5),C.R.S., togetherwiththepurepremiumrateasdefinedin§10-4-402(2.4),C.R.S.and includesproductionexpensesandcommissionsin accordancewith§10-4-403,C.R.S.
M.“Settlementproducer”hasthesamemeaningasfound at §10-11-102(6.5),C.R.S.,anddoes not includeinsuranceproducersasdefinedin§10-2-103(6),C.R.S.
N.“Settlementservices”hasthesamemeaningasfound at§10-11-102(6.7),C.R.S.
O.“Specificexception”means,forthepurposesof thisregulation,exceptionsthatareknown impairmentsforthesubjectpropertybutthe impairmentdoesnotappearinareasonablesearch andexaminationof thepropertyrecordsforthepropertybeinginsured.
P.“Standardorpreprintedexceptions”means,forthepurposesof thisregulation,thoseexceptions ontitlecommitmentsandpoliciesdealingwithpartiesin possession,surveymatters,mechanic’sliens,unpatentedminingclaims,patentedorunpatented mineralreservations,waterrights,mineralrights,mineralleases,mineralgrants,taxes,andrights orencumbrances.
Q.“Systemicerror”means,forthepurposesof thisregulation,anexceptionorviolationthatisnot determinedusinganerrorratebecauseitis inherentin thesystemorprocessof thetitleentity.
R.“TBDcommitment”means,forthepurposesof thisregulation,areport,in theformof a commitment,furnishedpriortoreceiptof an applicationfortitleinsurance,in whichthebuyer, salesamount,and loanamount,amongotherpossibledetails,arenotyetknown.
S."Titleentity"means,forthepurposesof thisregulation,title insuranceagents,title insurance agenciesandtitleinsurancecompanies,unlessotherwisestatedintheregulation.
T.“Titleinsuranceagency”means,forthepurposesof thisregulation,acorporation,partnership, association,orforeignordomesticentityasdefinedin §7-90-102,C.R.S.,orotherlegal entitythattransactsthebusinessof title insurance.
U.“Titleinsuranceagent”hasthesamemeaningasfound at§10-11-102(9),C.R.S.
V."Titleinsurancecompany”hasthesamemeaningasfound at§10-11-102(10),C.R.S.
Section5RulesRegardingConsumerProtections
A.Inordertocomplywiththe requirementsof §10-11-106,C.R.S.,notitleentityshallissuea commitmentfortitle insurancewithoutfirstperforming,orcausingto be performed,areasonable searchandexaminationofthepropertyrecordsforthepropertytobe insured.Asearchand examinationshallbeconsideredreasonableifitconformstowrittenstandardsandpracticesas determinedbythetitle insurancecompanythat is insuringthetransaction.Nothingcontained hereinshallpermitatitle insurancecompanyto createwrittenstandardsandpracticesthatdo not complywithsoundunderwritingprinciples.Nothingcontainedhereinshallprohibittitleinsurance companiesfrom developingseparatesearchandexaminationstandardsfordifferenttypesof transactionsorgeographicalareas.
B.Everytitleentityshallensurethatthetitlecommitment,asmaybeamendedormodified,fully disclosesto allrecipientstheimpairmentsof recordconcerning thepropertyto be insured,theextentof coverageproposed,allproposedtitleexceptions,and, inaclearandconspicuousmanner,shallshowwhetherthetitlecommitmentdoesor doesnotcommittoinsureoverordeletethoseexceptionstothe titlespecifiedtherein,consistent with§10-11-106,C.R.S.
C.Everytitleentityshallensurethatthetitlecommitment,asmaybeamendedormodified,fully disclosestherecordvestedownerasshownbytheapplicablecountyrealestaterecordsasof theeffectivedateshownon thecommitment.Ifacircumstanceexistswhichrequiresapersonotherthanthe vestedownertobeshown,thetitleentityshalldisclose,inaclearandconspicuous manner,thereason(s)forthedeviationfromtheavailablecountyrealestaterecords.
D.Everytitleentityshallensurethat,exceptforstandardorpreprintedexceptions,allproposedtitle exceptionson atitlecommitmentfortheissuanceof anowner’spolicyof title insurancemakereferencetotherecordinginformationof thedocumenttobe exceptedfrom coverage.
E.If atitleentityhasconductedareasonableexaminationof titleandwasunableto findrecorded informationforaknownimpairment,thetitleentitymaymakeuseof aspecificexceptionif thetitleentityusesallotheridentifiableinformation,suchasmarksonadocument,namesof parties, casenumbers,etc.,thatclearlyidentifiesandmakesreadilyavailabletotheconsumerthe instrumentor informationreferencedin thespecificexception.Nothinginthissubsectionmaybe construedtoallowa titleentityto avoidtherequirementof conductingareasonableexamination of title.
F.Wheneveratitleentityprovidestheclosingandsettlementservicethatisinconjunctionwiththe issuanceof an owner’spolicyof title insurance,itshallupdatethetitlecommitment from thedateof issuanceto beasreasonablyclosetothetimeof closingaspermittedbythe realestaterecords.Suchupdateshallincludeall impairmentsof recordatthetimeof closingorasclosetheretoaspermittedbytherealestaterecords.Thetitle insurance companyshallberesponsibletotheproposedinsured(s)subjecttothetermsandconditionsofthetitlecommitment,otherthantheeffectivedateof thetitlecommitment,for allundisclosedmattersthatappearof recordpriorto thetimeof closing.
G.Assoonasreasonablypracticalpriorto closing,everytitleentityshallnotifyin writingevery prospectiveinsuredunderanowner’stitlecommitmentthecircumstancesunder which thetitleinsurancecompanyis responsibleforallmatterswhichappearof recordpriorto thetime of recording(commonlyreferredto as“GapCoverage”).Thisnoticeshallbe clearand conspicuous,reasonablyunderstandable,anddesignedto callattentionto itsnatureand significance.
H.Everytitle insurancecompanyshallberesponsibleto theproposedinsured(s)subjecttothetermsandconditionsof thetitlecommitment,otherthantheeffectivedateof thetitlecommitment,forallmatterswhichappearof recordpriortothetimeof recording wheneverthetitle insurancecompany,oritsagent,conductstheclosingandsettlementservice that is in conjunctionwithits issuanceof an owner’spolicyof title insuranceandis responsiblefor therecordingandfilingof legaldocumentsresultingfrom thetransactionwhichwasclosed.
I.Ifatitleentityundertakestoinsureanypersonorentityagainstthepossibleadverseeffectof any recordedlien,recordedencumbranceorotherrecordedinterest,inaccordancewith§10-11-106, C.R.S.,andanyotherapplicablelaw,it shall:
1.Deletesuchrecordedlien,recordedencumbranceorotherrecordedinterestfrom the scheduleof exceptionsin itstitlecommitmentandhaveon handfunds,securities,a bondedobligation,orletterof creditpayableto theorderof saidtitleentity,adequateto dischargesuchlien,encumbranceorotherinterestintheeventsaidlien,encumbranceorotherinterestisperfectedtothedetrimentorpossibledetrimentof thepersonorentity insured,oranysuccessorininterestto suchpersonorentity;
2.Insureoverandreflectsuchrecordedlien,recordedencumbranceorotherrecorded interestin thescheduleof exceptionsin itstitlecommitment,andreceivean appropriate indemnityfrom theresponsibleparty;or
3.Insureoverthedefectinaccordancewiththetitleentity’ssoundunderwriting practicesandguidelines;and
4.Notraiseasadefensetoanyclaimbasedon,orarisingoutof, thedeletionorinsurance oversuchdefectorexceptionthatthe insuredassumed,agreedto,orhadknowledgeof thesaiddefectorexception.
J.Alltitleentitiesshallcomplywiththe“goodfundslaw”containedin §38-35-125,C.R.S.Inparticular,no titleentitythatprovidesclosingandsettlementservicesforanyrealestate transactionshalldisbursefundsasapartof suchservicesuntilthefundsto be disbursedhave beenreceivedandareeither:availableforimmediatewithdrawalasamatterof rightfrom the financialinstitutionin whichthefundshavebeendeposited;oravailableforimmediatewithdrawal asaconsequenceof theagreementof thefinancialinstitutionin whichthefundsareto be depositedorthefinancialinstitutionupon whichthefundsaredrawn.Anysuchagreementshall bemadewithorforthebenefitof thepersonorentityprovidingclosingandsettlementservicesforarealestatetransaction.
1.Notwithstandingtheprovisionsof this Section5.J.,theentityprovidingclosingand settlementservicesmayadvancefunds,notto exceedfivehundreddollars,on behalfof interestedpartiesforthetransactionto payincidentalfeesforsuchitemsastax certificatesandrecordingcostsortocoverminorchangesin theclosingadjustments.
2.Atitleentitymaysatisfytherequirementsof thisSection5.J. byuseof theGoodFunds AgreementappendedasAppendixA, withoutsubstantialamendmentormodification. Thisis theonlyagreementapprovedbytheDivisionforsuchpurpose.
3.Nothingin this Section5.J. shallbe deemedto prohibittherecordingof documents beforesuchfundsareavailableprovidedallnecessarypartiestothetransactionconsent in writingthereto.
4.Therequirementsof Section5.J. abovemaybe waivedbythesellerintherealestate transactionif:
a.Itis specifiedaspartofwrittenclosinginstructionsin advanceof closingthatthe sellerwaivestherequirementssetforthin Section5.J. aboveandthattheperson orentityconductingtheclosing,unlesssuchpersonorentityis theseller,is nottohandlethereceiptanddisbursementoffundsaspartof theclosing;and
b.Anyholderof alienencumberingthepropertyup tothetimeof closingagrees,in writing,tosuchwaiverandfurtheragrees,in writing,to releasesuchlien immediatelyuponreceiptof acheckfrom theclosingdrawnintheamountof the outstandingindebtednesssecuredbysuchlien.Suchanagreementshallobligatethe lienholdertoreleasesuchlienregardlessof whetherthepayoff checkreceivedhasbeenorwillbehonored.
5.Anysellerwhosorequestsaspartofwrittenclosinginstructionsinadvanceof closing, shallbe entitledtoreceivetheproceedsof closinginacashier’scheckorinfunds electronicallytransferredto anaccountspecifiedbytheseller.
K.Notitleentityshallprovideclosingandsettlementserviceswithoutreceivingwritteninstructions from allnecessaryparties.Allamendmentstoexistingwritteninstructionsmustbe in writing.
L.Everytitleentityshallberesponsibleforproperlyconductingeachclosingorsettlementservice andrecordingsuchdocumentsasitis directedin writingto recordinconjunctiontherewith,for eachtransactionfor whichsuchtitleentitychargesand collectsafee.
1.Alldocumentsmustbe submittedforrecordingwithinseven(7)calendardaysof:
a.Receiptof thedocumentto berecorded;or
b.Thedisbursementdateof thetransaction.
2.Intheeventincorrectorincompletedocumentsarereceived,thetitleentityshallhave seven(7)calendardays,from receiptof thecorrectedorcomplete documents,tosubmitthedocumentsforrecording.
3.Atitleentityshallbe deemedin complianceiftheysubmittherecordingto athirdparty electronicrecordingvendororthecountyrecorder’soffice.
M.Everytitleentityshallnotifyin writing,atthetimeof deliveryof thetitlecommitment, everyprospectiveinsuredinan owner'stitlecommitmentforasinglefamilyresidence (includingacondominiumortownhouseunit)of thattitleentity'sgeneralrequirementsforthe deletionof an exceptionorexclusiontocoveragerelatingto unfiledmechanic’sormaterialman’s liens,exceptwhensaidcoverageorinsuranceis extendedtotheinsuredunderthetermsof the policy.Thisnoticeshallbe clearandconspicuous,reasonablyunderstandable,anddesignedto callattentiontoitsnatureandsignificance.Notwithstandingtheforegoing,nothingcontainedin thisSection5.M.shallbedeemedtoimposeanyrequirementuponanytitle insurancecompany toprovidemechanic’sormaterialman’sliencoverage.
N.Everytitleentityshallissueanddelivertotheinsured,thetitle insurancepolicywithinninety(90)calendardaysof:
1.Theeffectivedateof thepolicyifthetitleentityis providingclosingandsettlementservicesfor thetransaction;or
2.Thesatisfactionof theterms,conditionsandrequirements of thetitlecommitmentifthetitleentityis notprovidingclosingandsettlementservicesforthe transaction.
3.Thetitleentityis notresponsibleforcompliancewiththissubsectionif thetitleentityhasnotreceivedpaymentforthetitle insurancepremium.
O.Everytitleentityis responsiblefor:
1.Ensuring thatrateschargedto insuredsforthetitleentity’sproductsbythefollowingpersons arethesameastheratesthatthetitleentityhasfiledwiththeDivision:
a.Thetitleentity’semployees;and
b.Titleinsuranceagentswithwhomthetitleentityhas an employmentrelationship, acontract,oran agencyagreement.
2.Pursuantto §10-3-131,C.R.S.,whenthefollowingpersonsareactingonthetitleentity’s behalf,anyunfairmethodof competitionoranyunfairordeceptiveactorpractice, whenthetitleentitykneworshouldhaveknownabouttheunfairmethodof competitionorunfairordeceptiveactorpractice:
a.Thetitleentity’semployees;and
b.Titleinsuranceagentswithwhomthetitleentityhas an employmentrelationship, acontract,oran agencyagreement.
3.Inallotherareas,exercisingreasonableeffortstoensurethattheactsof itsemployees andotherauthorizedagents,includingclosingagentsandtitle insuranceagencies,which areperformedwithinthescopeof theperson’semployment,contract,agencyagreement, orclosingprotectionletter,complywithall lawsandregulationsconcerningthebusiness oftitle insurance.
a.Forthepurposesof marketconductactions involving atitle insurancecompanyconductedpursuantto Part2of Article1of Title10C.R.S.,withtheexceptionof systemicerrors,theDivisionwillconsideran errorrateof 7%orhigherforclaims andanerrorrateof 10%orhigherforotherissues,byemployeesandagentsof thetitleinsurancecompanyperformedwithinthescopeof theperson’s employment,contract,agencyagreement,orclosingprotectionletter,to be a reportableexceptionthat thetitle insurancecompanyfailedtoconduct reasonableeffortstoensureitsemployeesandagentscompliedwiththe laws and/orregulationsatissueinthemarketconductaction.
b.Forthepurposesof marketconductactionsinvolving a title insuranceagentoragenciesconductedpursuantto Part2of Article1of Title10, C.R.S.,withthe exceptionof systemicerrors,theDivisionwillconsideranerrorrateof 7%or higherforclaimsandan errorrateof 10%orhigherforotherissuestobea reportableexception.
P.Everytitleentityshallmaintainadequatedocumentationandrecordssufficienttoshowits compliancewiththisregulationandTitle10 of theColoradoRevisedStatutesforaperiodof not lessthanseven(7)years,exceptas otherwisepermittedbylaw.
Section6Severability
Ifanyprovisionof thisregulationortheapplicationof ittoanypersonorcircumstanceis foranyreason heldto be invalid,theremainderof thisregulationshallnotbeaffected.
Section7Enforcement
Noncompliancewiththisregulationmayresultin theimpositionof anyof thesanctionsmadeavailablein theColoradostatutespertainingtothebusinessof insurance,orotherlaws,whichincludetheimposition of civilpenalties,issuanceof ceaseanddesistorders,and/orsuspensionsorrevocationof license, subjecttotherequirementsof dueprocess.
Section8EffectiveDate
ThisregulationshallbecomeeffectiveonOctober 1, 2015.
Section9History
NewregulationeffectiveOctober 1, 2015.
Appendix A
GOOD FUNDS AGREEMENT
THIS GOOD FUNDS AGREEMENT ("Agreement") is entered into as of this ____ day of ______, by and among ______("Mortgage Lender"), ______("Closing Agent"),______("Bank") and ______("Warehouse Lender").
RECITALS
A.Colorado Revised Statutes Section 38-35-125 (the"Statute") establishes certainrequirements forthe collection and availabilityoffunds which must besatisfied to enablea providerof closingand settlement servicesforreal estatetransactions to disbursesuch funds;
B.TheMortgageLenderispresentlyengaged in themakingofoneormoreloans ("Loan or Loans")to individuals or entities ("Borrowers")orpurchasing Loans madebyotherlenders. The Loans to which this Agreement pertains shall in everycasebeevidenced byapromissorynote ("Note") executed bythepertinent Borrower and secured byaprioritymortgageordeed oftrust ("Mortgage")on real propertyimproved bya1-4 family residence.
C.TheBank is a"financial institution", as defined intheStatute.
D.TheBank/WarehouseLenderhas extended acredit facilityto theMortgageLender, pursuant to which theBank/WarehouseLenderhas agreed, uponcertain terms and conditions, toadvance funds (an"Advance")to theMortgageLender forthepurposeofenablingtheMortgage Lenderto makeLoans. Each AdvancebytheBank/WarehouseLendershall besecured bythe Note and Mortgage executed in connection with theLoan forwhich theAdvanceis made.The term "Bank/WarehouseLender"shall mean(i)theBank ifno separatewarehouselenderis a partyor (ii)theWarehouseLenderif, thewarehouselenderis not theBank.
E.In orderto complywith theStatute, theparties wish to agreeuponan arrangement wherebytheClosingAgent may, immediatelyupon the closingofLoans, disburse funds delivered to it in connection with such closings.
F.TheBank mayissueReservation Numbers(as defined below) forLoans tobe funded by theMortgageLender’scheck drawn upon theBank orits affiliated bank,______account #______("GoodFunds Account")and theBank is willingto agreewith theLenderand theClosingAgent that it will fund checks drawn upon theGoodFunds Account (“Good Funds Check”) forthe fundingofLoans and the ClosingAgent maydisbursethe funds immediatelyupon the closingof Loans, upon theterms set forth in this Agreement.
NOW, THEREFORE, forgoodand valuableconsideration, the receipt andsufficiencyofwhich is herebyacknowledged,theparties agreeas follows:
1.Incorporation ofRecitals. TheRecitals set forthabove areherebyincorporated and madeapart ofthis Agreement.
2.Responsibilities ofMortgageLender. TheMortgageLendershall, priorto the closingofaLoan, prepare and deliverto theClosingAgent all necessaryLoan documents including, without limitation, aHUD-1 loan settlement statement. Alternatively, iftheClosingAgent or anythird partyprepares theLoan documents, the MortgageLendershall review and approvetheLoan documents.
3.Responsibilities oftheClosingAgent. TheClosingAgent shall be responsibleto do the following, at orpriorto the closingofeachLoan:
(a)DuringtheBank’s normal business hours, on orbeforethedayof disbursement of funds, theClosingAgent shall obtain from theBank orits designeebytelephone asspecified on thesignaturepage,a reservation number which has been issued bytheBankfortheGoodFunds Check (the"Reservation Number").
(b)TheClosingAgent shallverifythat the amount ofthe check delivered to it bytheMortgageLenderand drawn on theBank does not exceed theface amount oftheLoan less all discount points charged in connection with theLoan, asset forth on theHUD-1 settlement statement.
(c)TheClosingAgent shallmakedisbursements in accordancewith theHUD-1 settlement statement and do all otherthings and obtain all otherdocuments that it deems necessaryin orderto complywith theMortgageLender’s closinginstructions thatare applicableto theLoan and issueamortgagee’s policy oftitleinsurancein favoroftheMortgageLender,insuringthat theMortgageis a______lien on real propertyimproved bya1-4family residence as described therein. Theduties oftheClosingAgent hereundershall not includethepreparation oflegal documents. TheClosingAgent shall ineach case forward theoriginalMortgageto thepropergovernmental authorityfor recording. TheNote andall otherLoan documents shall bedelivered to theMortgageLenderwithintwo (2)business days afterdisbursement offunds,unless theClosingAgent is requested and agrees to forward theLoan packageto the Bank/WarehouseLenderorits designee as specified on thesignaturepage. For thepurposes ofperfectingtheBank’s/WarehouseLender’s securityinteresttherein pursuant to § 4-9-313(c), C.R.S., theClosingAgent shall bethebaileeof theBank/WarehouseLender and agrees to hold possession oftheNote andall otherLoan documents forthebenefit oftheBank/WarehouseLenderuntil the ClosingAgent delivers theLoan documents to theMortgageLenderorthe Bank/WarehouseLender.
(d)In theeventLoan proceeds arenot disbursed within two (2)business days afterissuanceofaReservation Number, theClosingAgent shall so notifythe MortgageLender andreturn the check to theMortgageLender.
4.Bank’sAgreement to HonorChecks. TheBank shall haveno obligation under this Agreement orotherwiseto issueaReservation Number foranycheckdrawn on the Good Funds Account. However, if(1)theBank does issueaReservation Number, (2) theBank hasgiven aReservation Numberto theClosingAgent, and(3)the Closing Agent closes aLoan anddisburses funds, then issuanceoftheReservation Numbershall constitutethewarrantyby,and unconditional agreement between theBankand the ClosingAgent that:
(a)TheBank shall honor and paytheGood Funds Check upon presentment without referencetoamounts on deposit in anyaccount;
(b)IssuanceoftheReservation Number constitutes an acceptanceor certification oftheGoodFunds Check bytheBank, pursuant to § 4-3-409,C.R.S.;
(c)TheGood Funds Check shall bedeemed,with respect to the abilityofthe Bank to stop payment, tobethe equivalent ofacashier’s check issued bythe Bank;
(d)Funds represented bytheGood Funds Checkarenot subject to offset by theBank; and
(e)TheBank shall not honoranystop-payment orderordirection from theMortgageLenderwith respect to theGood FundsCheck.
MortgageLenderagreesto pay,and indemnifyClosingAgent for, all losses sustained as aresult ofadishonorofaGoodFunds Check that theBank is obligated to honor as set out in this paragraph 4. Notwithstandinganyotherprovision ofthis Agreement, nothingin this Agreement is intendedto alterthenormal checkcollection and clearancetimeperiods foraGoodFunds Check.
5.Insured Closing Letter. Fortheduration ofthis Agreement, theClosing Agent shall obtain and causetoremain in effect insuredclosingletters from theTitleInsurance Companyin form andcontent acceptableto the Bank/WarehouseLender (the"Insured Closing Letters"). TheInsured Closing Letters shall be addressed to theBank/Warehouse Lenderand to theMortgageLender and shall not be cancelableexcept with ten (10)days priorwritten noticeto theBank/WarehouseLenderand theMortgageLender. A copyof theInsured Closing Lettershall bedelivered bytheMortgageLenderto the Bank/WarehouseLenderpriorto anyrequest forconfirmation pursuant to paragraph 3 (a) hereof.
6.Termination. This Agreement shall applyto allLoans oftheMortgageLender which arenow orhereafter closed bytheClosing Agent forwhichaReservation Number is requested andgiven, priorto termination ofthis Agreement. This Agreement maybe terminated byanypartyhereto, immediatelyupon thegivingofwritten noticeto all other parties. The rights and obligations oftheparties with respect to all GoodFunds Checks forwhich aReservation Numberhas been issued bytheBank priorto termination ofthis Agreement shall surviveanysuch termination.
7.Notices. All notices which arerequired ormaybegiven in connection withthis Agreement shall be effectiveupon the earlierofreceipt orthree (3)daysafterthesame aresent bycertified mail, return receipt requested,with postageprepaid, to the addresses contained on thesignaturepage.
8.Miscellaneous:
(a)This Agreement shall begoverned byand construed in accordancewith thelaws oftheStateofColorado.
(b)Nothingin this Agreement shall bedeemed to supersedeormodifythe rights and obligations oftheMortgageLenderandtheBank/WarehouseLender vis-à-vis each otherunder anyloan agreement orotherdocuments that may currentlybein placewithrespect to theBank’s/WarehouseLender’s credit facilitywith theMortgageLender (“OtherAgreement orDocuments”),and the Bank/WarehouseLendershall be entitled to exercise all rights andremedies granted in anysuchOtherAgreements orDocuments, as specified therein except that theBank’s agreement to honoraGood FundsCheck underparagraph 4shall not be altered orimpaired bysuchOtherAgreement orDocuments.
(c)This Agreement maynotbe assigned bytheClosingAgent orMortgage Lenderwithout thepriorwritten consent oftheBank and theWarehouseLender, if any.This Agreement shall bebindingupon andinureto thebenefit ofthe successorsand assigns oftheBankand theWarehouseLender, if any, andupon anypermitted successorsand assigns oftheClosingAgent ortheMortgage Lender.
(d)This Agreement maybeamended ormodified onlybyawritten instrument executed bytheparties hereto and onlyas permitted byDivision of InsuranceRegulation 3-5-1.
(e)No right orinterest underthis Agreement shall bewaived except by written instrument executed bythepartyagainst whom such waiveris sought. Anywaiverof anyparticulardefault or failuretoperform hereunderorofany provision hereofshall not constituteawaiverofanyotherdefault or failureto perform hereunderorofthesamedefault arisingagain in the future.
(f)In theevent ofanylitigation or arbitration hereunder, theprevailingparty shall be entitled to recoverits attorneys fees andcosts in addition to the award granted bythe court orarbitrator.
(g)The rights and remediesof each partyunderthis Agreement shall be cumulative, both as to other rights orremedies underthis Agreement and as to rights andremedies otherwiseprovided oravailableunderotheragreementsor at law, bystatuteorin equity. Theexerciseorpartialexerciseof anysuch right or remedyshall not precludethe exerciseofanyother right orremedy
(h)NoClosingAgent,MortgageLender,orBank/WarehouseLendershallbe requiredtoenterintothisAgreement.
INWITNESS WHEREOF, theparties haveentered into this Good Funds Agreement as ofthe date first abovewritten.
Bank: / Closing Agent:By / By
Name: / Name:
Title: / Title:
Address: / Address:
TelephoneNo.: / TelephoneNo.:
FAX No.: / FAX No.:
E-mail: / E-mail:
Attention: / Attention:
WAREHOUSE LENDER:______MORTGAGE LENDER:______
Bank: / Closing Agent:By / By
Name: / Name:
Title: / Title:
Address: / Address:
TelephoneNo.: / TelephoneNo.:
FAX No.: / FAX No.:
E-mail: / E-mail:
Attention: / Attention:
FOR RESERVATION NUMBERSpursuant to paragraph 3(a)contact:
Name: ______
Address: ______
Address: ______
TelephoneNo.: ______
E-mail: ______
Bank Authorization: ______
Name & Title
FOR LOAN DOCUMENT DELIVERY pursuant to paragraph 3(c) deliver to:
Name: ______
Address: ______
Address: ______
TelephoneNo.: ______
E-mail: ______
Bank Authorization: ______
Name & Title