Mortgagee title policy binder on interim construction loan rate rule r-13

Home Bulletins bulletins – 1995 B-141 BULLETIN NO. 141 May 3, 1973 To:   ALL TITLE INSURANCE COMPANIES LICENSED TO DO BUSINESS IN THE STATE OF TEXAS, AND ALL AGENTS THEREOF. Re:   MORTGAGEE TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN RATE RULE R-13 We have been asked whether or not Rate Rule R-13 would require the payment of the premium charge on a mortgagee title policy binder on interim construction loan at the time the binder is issued. We are of the opinion that the premium charge should be collected at the time this binder is issued. That failure to do so, would be construed as a violation of Rate Rule R-2 and Article 9.30 of the Texas Insurance Code. /s/ Ira M. Goodrich IRA M. GOODRICH Director of Title Insurance IMG:vl For more information, contact: ChiefClerk@tdi.texas.gov