Construction Begun Before Recording

Insurance against the risk of unfiled liens where construction began before recordation of the mortgage is outside the usual scope of title insurance protection. The Company will rarely entertain the risk of labor or materialmen’s liens during construction, in the absence of surety bonds naming the Company as co-obligee. If such approval is to be obtained, it will be given only in reliance upon financially responsible indemnitors, for which evidence of financial stability must be submitted, and upon satisfactory independent evaluation as to the sufficiency of funds available for completion of the project. In addition, control of disbursements, waivers, and other protective devices may be a condition of affording any coverage. Such insurance cannot be given without approval from Agents National Title underwriting counsel.