Bulletin: SC2021005

Dear Associates:

The 2021 ALTA Loan Policy and the 2021 ALTA Owner’s Policy include a new Covered Risk 8 for Notices of Enforcement of the PACA-PSA Trust recorded in the Public Records.

The 2021 ALTA Owner’s and Loan Policies include a new PACA-PSA Exclusion and definition of PACA-PSA Trust that is a substitute for the prior PACA-PSA exception that has often been used. The Exclusion avoids the need for a specific Schedule B exception:

2021 ALTA Owner’s Policy Exclusion 5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.

2021 ALTA Loan Policy Exclusion 7. Any claim of a PACA-PSA Trust. Exclusion 7 does not modify or limit the coverage provided under Covered Risk 8.

2021 ALTA Policy Definition. “PACA-PSA Trust”: A trust under the federal Perishable Agricultural Commodities Act or the federal Packers and Stockyards Act or a similar State or federal law. (2021 ALTA Owner’s Policy)

The 2006 ALTA Owner’s Policy and the 2006 ALTA Loan Policy do not include the PACA-PSA Exclusion and you should continue to use the PACA-PSA exception where applicable when issuing the 2006 ALTA Policy, as described in our PACA-PSA Bulletin SLS2014001.

If the PACA-PSA Exclusion does not appear relevant to the transaction as described in our PACA-PSA Bulletin SLS2014001, and the customer requests deletion of the PACA-PSA Exclusion from the 2021 ALTA Owner’s Policy or the 2021 ALTA Loan Policy, please contact a Stewart Title Guaranty Company Underwriter. A Stewart Title Guaranty Company Underwriter may approve issuance of the STG Deletion of PACA-PSA Exclusion Endorsement to the 2021 ALTA Owner’s or the 2021 ALTA Loan Policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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