- Mezzanine Provides true ownership coverage for equity interests in entities such as corporations, LLC's, or partnerships, insuring the "Protected Purchaser" status of the creditor under Article 8 of the UCC.
- Pledged Equity Issued where the equity holder is guarantying the indebtedness of the primary obligor and securing its guaranty with a pledge of the equity interests usually in the primary obligor or borrower.
- Seller's Lien Protects the lender with respect to filed UCC Financing Statements created by any prior owner (of the Collateral) which may encumber the collateral.
- Tax Lien Protects lender with respect to filed federal or state tax liens which encumber the collateral.
- Renewal Extends coverage of the policy past the date set for expiration of the loan transaction in the applicable loan and security agreement in instances in which the lender is renewing a loan to the same obligor granting a security interest in the same collateral.
- Lender's Aggregation Combines coverage under the EAGLE 9® UCC Lenders Insurance Policy with coverage under a First American land title insurance policy.
- Change of Name of Insured Applicable when Insured changes its name or assigns the Indebtedness and underlying security interest which is subject to the UCC Insurance.
- Post Policy Tax Lien Applicable when Insured changes its name or assigns the Indebtedness and underlying security interest which is subject to the UCC Insurance.
- Post Policy Judgment Lien The UCC Division will periodically search the public records as dictated by the lender and insure no judgment liens have been filed.
- Springing Control Applicable where the issuer of equity has not opted into Article 8 of the UCC, therefore the mezzanine endorsement is not available, and the insured equity holder wants assurance that if such issuer thereafter were to opt into Article 8, the Insured would be classified as a "Protected Purchaser."
- Waiver of Attorney Subrogation First American waives any rights it may have against either lender or borrower's counsel as a result of paying a claim and thereby being subrogated to the rights of the insured against counsel.
- Borrower's Status Clarifies for the Insured the explicit and implicit coverages of the EAGLE 9® UCC Lender's Insurance Policy, including the authorization, execution, and delivery of the security interest granting document, by setting forth the due diligence steps taken by First American in reaching the conclusions set forth in the insuring clauses of the policy, such as the conclusion that the Insured's security interest is in first priority.
As with any insurance contract, there are exceptions, exclusions, and conditions to coverage contained in the policy. Some coverages may not be available in your area, or for your transaction, due to legal, regulatory, or underwriting considerations. Depending on the states involved, First American's EAGLE 9® UCC Insurance Policies are issued through either First American Title Insurance Company or First American Property & Casualty Insurance Company, members of The First American Family of Companies. Please contact us for further information.