SECTION III -- RATE RULES

• Access Endorsement R-30
• Additional Chains of Title R-9
• Additional Insured Endorsement R-33
• Amendment of Exception as to Area, Boundaries, etc. R-16
• Amendment of or Endorsement Amending Exception in Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) R-19
• Applicable Only as Provided in Procedural Rule P-29 R-24
• Commitment Fee R-23
• Commitment for Title Insurance R-12
• Commitment for Title Insurance to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation R-25
• Contiguity Endorsement R-32
• Creation of New Loan Contemplated by Construction Lender R-18
• Equity Loan Mortgage Endorsement and Supplemental Coverage Equity Loan Mortgage Endorsement R-28
• Foreclosed Properties R-14
• Limited Pre-Foreclosure Policy (Form T-40) and Limited Pre-Foreclosure Policy Down Date Endorsement (Form T-41)
• Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously R-7
• Mortgagee Policy R-4
• Mortgagee Policy Endorsement R-11
• Mortgagee Policy on a Loan to Take Up, Renew, Extend or Satisfy an Existing Lien(s) R-8
• Mortgagee Title Policy Binder on Interim Construction Loan R-13
• Multiple Owner Policies on Same Land R-21
• Non-Imputation Endorsement R-31
• Owner and Leasehold Policies R-22
• Owner Policies-City Subdivision, Acreage Subdivisions, Industrial Tracts R-10
• Owner Policy R-3
• Owner Policy After Construction Period R-20
• Owner Policy Endorsement R-15
• Policy Forms for Use by United States Government R-17
• Premium for Commitment for Title Insurance to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation  R-25
• Premium for Equity Loan Mortgage Endorsement (T-42) and supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) R-28
• Premium for Restrictions, Encroachments, Minerals Endorsement (T-19) and Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1) R-29
• Premium for Limited Pre-Foreclosure Policy (Form T-40) Limited Pre-Foreclosure Policy Downdate Endorsement (Form T-41) R-26
• Restrictions, Encroachments, Minerals Endorsement (T-19)and Restrictions, Encroachments, Minerals Endorsement-Owner Policy (T-19.1) R-29
• Premium for Minerals and Surface Damage Endorsement (T-19.2), and Minerals and Surface Damage Endorsement (T-19.3) R-29.1.
• Rebates and Discounts R-2
• Schedule of Basic Premium Rates R-1
• Simultaneous Issuance of Owner and Mortgagee Policies R-5
• Subsequent Issuance of Mortgagee Policy R-6
• Texas Residential Limited Coverage Junior Mortgagee Policy R-27

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RATES EFFECTIVE FEBRUARY 1, 2007

Premiums shall be calculated as follows for policies in excess of $100,000:

1. For policies of $100,001 - $1,000,000
   
   Basic Premium  

   1. Subtract $100,000 from policy amount.

   2. Multiply result in 1.(1)by $.00534 and round to nearest whole dollar.

   3. Add $843 to result in 1.(2).  
       

2. For policies of $1,000,001 - $5,000,000
   
   Basic Premium

   1. Subtract $1,000,000 from policy amount.

   2. Multiply result in 2.(1) by $.00439 and round to nearest whole dollar.

   3. Add $5,649 to result in 2.(2).
      

3. For policies of $5,000,001 - $15,000,000

   Basic Premium

   1. Subtract $5,000,000 from policy amount.

   2. Multiply result in 3.(1) by $.00362 and round to nearest whole dollar.

   3. Add $23,209 in 3.(2).
       

4. For policies of $15,000,001 - $25,000,000

Basic Premium

1. Subtract $15,000,000 from policy amount.

2. Multiply result in 4.(1) by $.00257 and round to nearest whole dollar.

3. Add $59,409 to result in 4.(2).

     5.   For policies in excess of $25,000,000
 

           Basic Premium

1. Subtract $25,000,000 from policy amount.

2. Multiply result in 5.(1) by $.00154 and round to nearest whole dollar.

3. Add $85,109 to result in 5.(2).

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IN NO EVENT MAY ANY POLICY OR ENDORSEMENT FORMS CONTAIN COVERAGE NOT EXPRESSLY AUTHORIZED BY THESE RULES.

R-1. Schedule of Basic Premium Rates - Schedule of Basic Premium Rates - The Schedule of Basic Premium Rates for Title Insurance shall apply to all policies, unless the same be specified in other applicable Rate Rules.

In no event shall two or more Rate Rules be combined in the calculation of the premium for the subject transaction, unless one Basic Rate on the policy in the largest amount is charged, except as provided for in Rules R-5 and R-14. The Basic Premium Rates for policies include the charge for title insurance, title examination and closing the transaction (see Definitions in Rule P-1).

No portion, split or percentage of the premium shall be paid either directly or indirectly for title insurance, title examination or closing the transaction to any person unless there shall have been timely compliance with Rule P-21 and  P-22.

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R-2. Rebates and Discounts - No Company shall charge for a policy in one transaction and withhold  issuance of a policy thereon, nor shall any Company charge a premium for a policy in one transaction  and apply the charged premium in a subsequent transaction, except when same covers identical land  to that contained in the initial conveyance, and when same shall have been consented to by the  parties to all conveyances involved, which consent may be provided for in the contract(s) on which the  transaction is based, or may be given in a separate written instrument, or may be evidenced by the  acceptance and signing of a closing statement clearly setting forth application of the premium charge  as agreed by the parties to the transaction(s). The phrase "one transaction" as used in this rule may  include more than one conveyance provided: (i) all grantors and grantees have acknowledged in writing the method of application for premium or premiums to be collected, and (ii) all instruments of  conveyance relating to the subject property which is to be insured are unconditionally delivered  simultaneously. Each company shall remit the portion of the premium due to the title Insurance Company no later than the 15th day of the second month following the month in which the premium was collected. The provisions of this rule shall also apply to any escrow officer who remits directly to a title insurance company. A company shall not issue or deliver a policy, binder or endorsement until a rate therefore has been adopted by the Commissioner.  The company must collect the full charge for such form, except as follows:  

         (a) When a Mortgagee Policy is issued in the manner provided in Rule P-8.b., the premium for the Mortgagee Policy may be paid in installments if the following conditions are met:  

                 (1) The face amount of the policy shall be $5,000,000 or more.  

                 (2) The premium for the Mortgagee Policy shall be determined on the date of issuance thereof. As the loan which is the subject of the policy is disbursed, a fraction of the premium for the policy equal to the fraction of the loan then funded shall be paid and upon payment thereof the amount of the coverage of the Mortgagee Policy shall increase by the amount of such funding.  

                 (3) The down date endorsement procedure described in rule P-9.b.(4) must be used in connection with such Mortgagee Policy.  

If any one of the above conditions is not met with respect to such Mortgagee Policy, the remaining premium due and owing therefore shall be immediately due and payable.  

         (b) When an Owner Policy meets the requirements of paragraph (a) above, and is issued in the manner provided in Rule P-8.a., and is issued simultaneously with a Mortgagee Policy as provided in  Rule R-5.B., the amount of coverage of said Owner Policy shall increase in an amount equal to, and  contemporaneously with, the increase in the coverage of said Mortgagee Policy.  

        (c) When an Owner Policy is issued in the manner provided in Rule P-8.a., but is not issued  simultaneously with a Mortgagee Policy as provided in Rule R-5.B., the premium for the Owner Policy  may be paid in installments if the following conditions are met:  

                 (1) The face amount of the policy shall be $5,000,000 or more.  

                 (2) The premium for the Owner Policy shall be determined on the date of issuance thereof. The  premium for the Owner Policy paid upon issuance thereof shall be the portion of the total premium  allocable to the liability under the Owner Policy as shown in the liability paragraph prescribed by Rule P-8.a.(1). As the contemplated improvements which are the subject of the Owner Policy are made, a fraction of the premium for the policy equal to the amount actually expended by the Insured in improvements since the last premium payment date shall be paid periodically and in no event later than completion thereof, and upon payment of said premium fraction the amount of the coverage of the Owner Policy shall increase by the said amount expended in improvements.  

                 (3) The down date endorsement procedure described in Rule P-9.a.(3) must be used in  connection with such Owner Policy.

 If any one of the above conditions is not met with respect to such Owner Policy, the remaining premium due and owing therefore shall be immediately due and payable.

         (d)  When a qualified intermediary under Internal Revenue Code §1031 takes title on behalf of the ultimate owner (the person making the exchange and receiving the tax benefit), Schedule A of the policy should be prepared as set out in Procedural Rule P-63. 

                An issued policy should not be altered or endorsed after the deed from the intermediary to the ultimate owner, to change the insured to reflect the name of the ultimate owner. This Rate Rule R-2 strictly prohibits passing through the title insurance premium on multiple conveyances unless proper disclosure is made and the deeds to all conveyances are delivered to the title or closing agent simultaneously and without condition.  However, if title coverage is issued as outlined in Procedural Rule P-63, the provisions of R-2 as to the pass through premium are not applicable because the policy is issued in the transaction in which the premium was collected.

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R-3. Owner's Policy - Improvements Subsequently Added—If improvements are subsequently added, a new Owner’s Policy may be issued in the aggregate amount of the original Owner’s Policy or Owner’s Policies, plus the cost of improvements, as provided in Rule P-66. 

1)   If a single original Owner’s Policy was issued, the premium for the new policy shall be the Basic Rate less the premium which was paid for the surrendered, original policy.

2)   If multiple original Owner’s Policies were issued, the premium for the new policy shall be at the Basic Rate less the currently promulgated Basic Rate for the aggregate of the surrendered original policies.

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R-4. Mortgagee Policy - When a previously issued mortgagee policy insuring a variable rate mortgage is reissued (or endorsed), effective as of the date of the original Mortgagee Policy, increasing the face amount of the Mortgagee Policy from the original principal amount of the loan to an amount not to exceed one hundred twenty-five percent (125%) of the original principal amount the additional premium is calculated as follows:

a.   The premium on the increased Policy Amount calculated at the Basic Rate (existing on the date of the original Mortgagee Policy) but less the greater of the amount of the premium previously charged for: (i) the original Mortgagee Policy, or (ii) the Owner Policy.

b.   If such original Mortgagee Policy was issued as a simultaneous issue; no credit shall be given for the simultaneous issue premium charge.

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R-5. Simultaneous Issuance of Owner and Mortgagee Policies

A. Except as otherwise provided in this rule, when an Owner Policy and Mortgagee Policy(ies) are issued simultaneously, bearing the same date, and covering the same land, or a portion thereof, covered by the Owner Policy and covering no other land, the Owner Policy showing the lien(s) as an exception therein, the Owner Policy shall be issued at the Basic Rate, and the premium for the Mortgagee Policy(ies) shall be $100.00 each. Should the amount of the Mortgagee Policy(ies) exceed the amount of the Owner Policy, the Basic Rate shall be charged for the Owner Policy, and the premium for the Mortgagee Policy(ies) shall be at the Basic Rate plus $100.00 for each Mortgagee Policy, less the Basic Rate for the Owner Policy. (In the application of this rule, if an Owner Policy has been previously issued covering the identical property to be covered by the Owner Policy to be issued and provided that the Owner Policy is to be issued in accordance with P-8.a and within four (4) years after the date of the previously issued Owner Policy and that there has been no change in ownership of such property, credit shall be given against the premium of the Owner Policy to be issued for the amount of the premium paid by any party for said previously issued Owner Policy. In no event shall the premium collected for such Owner Policy be less than the regular minimum promulgated rate for an Owner Policy.)

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be issued at the Basic Rate.

B. When an Owner Policy meeting the requirements of Rule R-2(b) is issued in the manner provided in Rule P-8.a., and is issued simultaneously with a Mortgagee Policy described in Rule R-2(a), bearing the same date, and covering the same land covered by the Mortgagee Policy, or a portion thereof, and covering no other land, the premium for the Owner Policy shall be $100.00. Should the amount of the Owner Policy exceed the amount of the Mortgagee Policy, the premium for the Owner Policy shall be at the Basic Rate plus $100.00 less the Basic Rate (to be paid as provided in Rule R-2(a)) for the Mortgagee Policy. In the application of this rule, if an Owner Policy has been previously issued covering the identical property to be covered by the Owner Policy to be issued and provided there has been no change in ownership of such property, credit shall be given against the premium for the Mortgagee Policy to be issued for the amount of the premium paid for said previously issued Owner Policy.

C.  An insured under an existing Owner Policy not issued containing P-8 exceptions may, after completion of improvements on the property insured, turn in the existing Owner Policy and receive credit for the premium previously paid when purchasing a new Owner Policy in an amount greater than the existing Owner Policy.  A Mortgagee Policy may be simultaneously issued for the premium established in R-5.A.  In no event may the Owner Policy be issued for less than the minimum promulgated basic premium rate.  This subsection applies only if (1) the land is residential property, (2) the existing Owner Policy covered the identical land to be covered by the new Owner Policy to be issued, (3) the new Owner Policy is to be issued within four (4) years after the date of the existing Owner Policy, and (4) there has been no change in ownership of such land.

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R-6. Subsequent Issuance of Mortgagee Policy

a. Subsequent to Owner Policy - When a Mortgagee Policy(ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium shall be one-half the Basic Rate. The lien to be insured must be as originally created, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy(ies) shall be issued in the amount of the current unpaid balance of said indebtedness. The Company shall be furnished such evidence as it may require verifying such unpaid balance, that the indebtedness is not in default and that there has been no acceleration of maturity.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be issued at the Basic Rates.

b. Subsequent to Mortgagee Policy - When a Mortgagee Policy(ies) is requested, for any reason whatsoever, on a lien already covered by an existing Mortgagee Policy(ies), but not on a renewal or extension thereof, the new policy being in the amount of the current unpaid balance of the indebtedness, the premium for the new policy shall be at the Basic Rate, but a credit for three-tenths (3/10) of said premium may be allowed.

c. Subsequent to Mortgagee Policy - When an insolvent insurer is placed in permanent receivership by a court of competent jurisdiction and a Mortgagee Policy(ies) is requested on a lien already covered by an existing Mortgagee Policy(ies) of said insolvent insurer, but not on a loan to take up, renew, extend or satisfy an existing lien, the new policy being in the amount of the current unpaid balance of the indebtedness, the premium for the new policy shall be at the basic rate, but a credit for one-half of said premium shall be allowed, unless such credit would reduce the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured shall surrender the existing Mortgagee Policy(ies) to the Company when placing the order for a new Mortgagee Policy(ies). The date of Policy for the new policy(ies) shall be the same Date of Policy as the existing Mortgagee Policy(ies).

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R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously - When a Mortgagee Policy is issued on a First Lien, and other policy(ies) is issued on Subordinate Lien(s), created in the same transaction, covering the same land or a portion thereof, the premium for the First Lien policy shall be computed on the total of the combined liens; the premium for each Subordianate Lien policy shall be $5.00.

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R-8. Mortgagee Policy on a Loan to Take Up, Renew, Extend or Satisfy an Existing Lien(s) - On a Mortgagee Policy, issued on a loan to fully take up, renew, extend or satisfy an old mortgage(s) that is already insured by a Mortgagee Policy(ies), the new policy being in the amount of the note of the new mortgage, the premium for the new policy shall be at the Basic Rate, but a credit shall reduce the premium by the following amount:

(a) 40% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring within two (2) years from the date of the Mortgagee Policy insuring the old mortgage;

(b) 35% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than two (2) years but less than three (3) years from the date of the Mortgagee Policy insuring the old mortgage;

(c) 30% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than three (3) years but less than four (4) years from the date of the Mortgagee Policy insuring the old mortgage;

(d) 25% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than four (4) years but less than five (5) years from the date of the Mortgagee Policy insuring the old mortgage;

(e) 20% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than five (5) years but less than six (6) years from the date of the Mortgagee Policy insuring the old mortgage;

(f) 15% of the premium calculated at the current rate on the written payoff balance of the old mortgage, such renewal occurring more than six (6) years but less than seven (7) years from the date of the Mortgagee Policy insuring the old mortgage;

After the lapse of seven (7) years from the date of the Mortgagee Policy insuring the old mortgage, the Basic Rate shall apply.

Where more than one chain of title, as the term "chain of title" is from time to time defined by the Commissioner, was involved in the issuance of the original policy(ies), and the new policy includes one or more of such additional chains of title involved in the issuance of the original policy(ies), an additional premium charge as established by the Commissioner shall be added for each additional chain of title involved. (See Rule R-9 for definition of "additional chain.")

On Mortgagee Policies, issued on multiple loans to fully take up, renew, extend or satisfy an old mortgage insured by a single Mortgagee Policy, the new policies being in the amount of the new mortgages, the premium for the larger Mortgagee Title Policy shall be at the Basic Rate, but a credit shall be allowed upon the premium as set forth previously in this rule. The premium for the remaining new Mortgagee Title Policy(ies) shall be at the Basic Rate. A credit shall still be allowed upon the premium as set forth in this rule even if not all of the new loans are insured or if only one of the new loans is insured. The reduction in rate as herein prescribed shall not apply to any case where any additional property not covered by the original policy(ies) is included in the policy to be issued.

In the calculation of the credit, the amount from the written payoff balance shall not exceed 100% of the original amount of the old mortgage. In no event shall the premium collected be less than the regular minimum promulgated rate for a Mortgagee Policy.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be issued at the Basic Rate.

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R-9. Additional Chains of Title - In the event more than one chain of title is involved in the issuance (including determination of insurability of access) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each additional chain. For purpose of applying this rule, contiguous parcels of land in one county shall be treated as one chain, provided record title to the land and record title to the access is vested in one owner at the time application is made. Each noncontiguous parcel having a separate chain shall be treated as a separate chain, except where two or more lots in the same platted subdivision, and having the same plat recording date, belong to the same owner, then such shall be treated as one chain. If the parcels of land lie in more than one county, there are separate chains of title in each county. No additional chain charge may be made for determination of insurability of access to land located within a subdivision, provided: (i) the subdivision is located in only one county, and (ii) the plat of the subdivision has been lawfully approved by an authorized governmental entity, is duly recorded, and the roads shown thereon have been dedicated for public use or for the use of the owners of lots located in the subdivision.

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R-10. Owner Policies - City Subdivision, Acreage Subdivisions, Industrial Tracts - Where the owner of twenty-five (25) or more unsold vacant city lots, acreage tracts or industrial tracts, all in the same subdivision or development, with a map or plat duly approved by proper statutory authority and recorded in the County Records, contracts with one Company to purchase an Owner Policy from that Company on each and every sale made by said owner, the first Owner Policy shall be issued at the Basic Rate, and the premium for all subsequent policies shall be:

a. City Subdivisions - 25 to 49 lots - One-half of 1% of the sale price of the lot(s) covered thereby, with a minimum of $10.00 per policy. 50 lots or more - One-half of 1% of the sale price of the lot(s) covered thereby, with a minimum of $7.50 per policy.

b. Acreage Subdivisions - Comprised of 100 acres or more - One-half of 1% of the sale price of the tract(s) covered thereby, up to $10,000.00, and one-fourth of 1% of the portion of the sale price above $10,000.00, with a minimum of $15.00 per policy. Where an acreage subdivision is made up of tracts containing less than two acres, such subdivision shall be treated as a City Subdivision in accordance with Rule R-10a.

c. Industrial Tracts - One-half of 1% of the sale price of the tract(s) covered thereby, or one-half of the Basic Rate, whichever is the lesser, with a minimum in either case of $20.00 per policy.

Should the premium in the application of this Rule R-10 exceed the Basic Rate, the Basic Rate shall then apply.

In connection with the above Rule R-10, the simultaneous issue rate for the Mortgagee Policies will not apply.

As of September 1, 1975, no new contracts may be made under this Rate Rule and the charges indicated above may be changed only for those contracts that were in existence prior to September 1, 1975.

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R-11. Mortgagee Policy Endorsement - Applicable only as provided in Rule P-9.

A.  Endorsement issued as provided in Rules P-9b(1) and P-9b(2) - The minimum Basic Premium Rate shall be charged for each Endorsement issued after the date of the original policy. In no event, however, shall such premium exceed 50% of the premium applicable to the original Mortgagee Policy under the Schedule of Basic Rates.

B.  Endorsement issued as provided in Rule P-9b(3) - A premium of $100.00 shall be charged for each Endorsement issued within one year after the date of the original policy. If issued after said one year period, an additional $10.00 shall be charged for each twelve-month period thereafter, or a part thereof. In no event, however, shall such premium exceed 50% of the premium applicable to the original Mortgagee Policy under the Schedule of Basic Rates.

C.  Endorsement issued as provided in Rule P-9b(4) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(4). 

D.  Endorsement issued as provided in Rule P-9b(6) - A premium of $20.00 shall be charged for the issuance of each endorsement authorized by Rule P-9b(6) except that such additional premium charge shall not be made if an additional premium charge has been made for the Mortgagee Policy (to which the Endorsement is attached) under the second paragraph of Rate Rule R-4. 

E.  Endorsement issued as provided in Rule P-9.b.(7) – A premium of $20.00 shall be charged for the issuance of endorsement form T-31 as provided for in Rule P-9.b.(7). A premium of $50 shall be charged for the issuance of endorsement form T-31.1 as provided for in Rule P-9.b.(7).

F.  Endorsement issued as provided in Rule P-9b(8) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(8). 

G.  Endorsement issued as provided in Rule P-9b(9) - A premium of $25.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(9). 

H.  Endorsement issued as provided in Rule P-9b(10) - A premium of $25.00 shall be charged for the issuance of the endorsement provided for in Rule P-9b(10) if the endorsement is issued at the time of the issuance of the mortgagee policy.  A premium of $50.00 shall be charged for the issuance of the endorsement provided for in Rule P-9b(10) if the endorsement is issued subsequent to the issuance of the mortgagee policy. 

 I.  Endorsement issued as provided in Rule P-9b(11) - When the First Loss Endorsement (T-14) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(11), the premium for the First Loss Endorsement (T-14) shall be $25.00. 

 J.  Endorsement issued as provided in Rule P-9b(12) - When the Last Dollar Endorsement (T-15) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(12), the premium for the Last Dollar Endorsement (T-15) shall be $25.00. 

K.  Endorsement issued as provided in Rule P-9b(13) - When the Mortgagee Policy Aggregation Endorsement (T-16) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(13), the premium for the Mortgagee Policy Aggregation Endorsement (T-16) shall be $25.00. 

L.  Endorsement issued as provided in Rule P-9b(14) - When the Planned Unit Development Endorsement (T-17) is issued with a Mortgagee Policy in accordance with Rule P-9b(14), the premium for the Planned Unit Development Endorsement (T-17) shall be $25.00.  If the Company issues the Planned Unit Development Endorsement (T-17) on two or more title insurance policies which are issued simultaneously covering the same land, then the premium for the Planned Unit Development Endorsement (T-17) shall be charged only for one Planned Unit Development Endorsement (T-17).

M.  Endorsement as provided in Rule P-9b(15) – When the Condominium Endorsement (T-28) is issued with a Mortgagee Policy in accordance with Rule P-9b(15), the premium for each Condominium Endorsement (T-28) shall be $0.00.

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R-12. Commitment for Title Insurance - Applicable only as provided in Rule P-18 - The Commitment for Title Insurance shall bear no premium in addition to the premium chargeable for the policy or policies issued pursuant thereto, except that this Rule R-12 shall not apply to any commitment for title insurance issued pursuant to Rate Rule R-23, or Rate Rule R-25.

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R-13. Mortgagee Title Policy Binder on Interim Construction Loan

A. Applicable only as provided in Rule P-16 - A premium charge of an amount equal to the minimum policy Basic Premium Rate shall be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder shall be issued for a term of one year. The original Binder may be extended for six (6) additional consecutive periods of six (6) months each, not to exceed thirty-six (36) months. A premium of $25.00 shall be charged for each consecutive six (6) month extension.

B. Upon subsequent issuance of:

(1) a Mortgagee Policy on a loan to fully take up, renew, extend or satisfy a lien already covered by a Mortgagee Title Policy Binder on Interim Construction Loan, or

(2) an Owner's Policy on the sale of a property which is encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the conveyed property is released prior to or simultaneous with the sale, the premium for the new policy shall be at the basic rate, but a credit for the premium paid for the Binder shall be allowed to the purchaser of the Owner's Policy as follows:

Fifty percent (50%) of the premium paid for the Binder (exclusive of extensions), if the subsequent policy is issued within one (1) year from the date of the original Binder.

Where more than one Policy may be issued on a portion of the property covered by the Binder, only one credit shall be allowed, being on the first Policy issued.

This rule shall not apply to any Binder issued prior to March 1, 1989, in which case, no credit is allowed.

Notwithstanding the provision in Rate Rule R-1, it shall be permissible to combine this rule with Rate Rule R-5 in the calculation of the premium for a Policy. In no event shall the premium collected be less than the regular minimum promulgated rate for a Mortgagee Policy.

The fifty percent (50%) credit shall not apply if the Binder covers real property which is being improved for improvements other than one to four residential units.

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R-14. Foreclosed Properties - When the owner of the property has acquired same directly through foreclosure under a mortgage insured by a Mortgagee Policy, or the Secretary of Housing and Urban Development or the Administrator of Veteran's Affairs, or as their names may be changed from time to time, has acquired said property by reason of its guarantee or endorsement of a mortgage insured by a Mortgagee Policy, and is selling same, an Owner Policy may be issued on said sale, or a Mortgagee Policy may be issued on a lien being retained in the deed conveying said property. If only an Owner Policy is issued, the charge therefore shall be at the Basic Rate on the full amount of the consideration of said sale. If only a Mortgagee Policy is issued, the Basic Rate on the full amount of the lien shall be charged. In either case, the credit of $15.00 on the entire transaction shall be allowed. In the event an Owner Policy and a Mortgagee Policy are issued simultaneously on a transaction as provided in Rule R-5, the simultaneous issue rate, as well as the credit allowed by this rule, shall apply. The $15.00 credit allowed by this rule shall not apply until the issuing Company is furnished the following:

a. At the time the policy or policies are ordered, the seller will transmit to the Company, for its examination and use, such evidence as is available in the seller's files, including the Mortgagee Policy covering the lien foreclosed, showing title vested in such seller. This title evidence must be retained in the files of the Company for future reference in the event a claim arises under the indemnity agreement set forth in paragraph "b" hereof.

b. The seller of the property must convey by General Warranty Deed, or agree to save harmless and indemnify the Company for losses the Company may sustain as a result of any of the following:

(1) Defects, liens or encumbrances of title created prior to the date of recording of the deed conveying title to said seller, and not shown as exceptions to title in the title evidence furnished to the Company by said seller.

(2) Unfiled mechanic's and/or materialmen's liens.

(3) Rights of parties in possession.

c. The seller will not be required to indemnify the Company for errors and omissions previously made in policies previously issued by that Company.

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R-15. Owner Policy Endorsement -

1. Increased Value – When requested by the Insured, and upon compliance with Rule P-9.a.(2), endorsement form T-34 shall be attached to the Owner Policy upon payment of a premium for such endorsement which shall be the Basic Rate computed on the new amount less the premium paid for the Owner Policy and any form T-34 endorsements previously attached thereto, but in no event less than the then applicable minimum policy Basic Premium Rate.
2. Increase in Coverage During Construction - A premium of $50.00 shall be charged for each T-3 Endorsement issued according to Instruction VIII, as provided in Rule P-9.a.(3).
3. Manufactured Housing Unit - A premium of $50.00 shall be charged for each T-31 or T-31.1 Endorsement issued, as provided in Rule P-9.a.(4).

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R-16. Amendment of Exception as to Area, Boundaries, etc. - Applicable only as provided in Rules P-2 and P-8a.(2) - the Exception as to area and boundaries, etc., may be amended in an Owner or Mortgagee Policy upon the payment of an additional premium (in the case only of an Owner Policy) therefore equivalent to (1) 15% of the Basic Rate in an Owner Policy (T-1), or (2) 5% of the Basic Rate in a Residential Owner Policy of Title Insurance - One-To-Four Family Residences (Form T-1R), with a minimum premium of $20.00.

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R-17. Policy Forms for Use by United States Government - Certificate of Title (U.S.A.), Certificate of Title for Easement (U.S.A.) and Policy of Title Insurance (U.S.A.) may be issued to the United States of America showing the condition of title to a tract of land prior to the acquisition of title to said land by the U.S.A. in an amount to be designated by the U.S.A. The premium for said policies shall be at the Basic Rate.

Upon acquisition of title by the U.S.A., a final Certificate of Title, or an Endorsement to the Owner Policy, may be issued to the U.S.A., and the premium therefor shall be at the Basic Rate, and subject to the provisions of Rule R-3, less the premium which was paid for the Certificate of Title or Policy of Title Insurance, prior to the acquisition by the U.S.A.

Policy of Title Insurance (U.S.A.), Form T-11, may be issued in favor of the United States Postal Service upon its acquisition of title to properties with the addition of the following paragraph 9 to the conditions and stipulations:

"9. In the event that the interests of the United States Postal Service with respect to the land referred to in this policy are not represented by the Attorney General of the United States at the time any election, notice, request, permission, cooperation, assistance, or statement is required or permitted by these conditions and stipulations, then such election, notice, request, permission, cooperation, assistance or statement, as so required or permitted, and otherwise conforming hereto, shall be given or furnished by or to the United States Postal Service."

Such policy forms shall also have stricken therefrom in all places the name "United States of America" and have substituted in lieu thereof the name "United States Postal Service."

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R-18. Creation of New Loan Contemplated by Construction Lender -

1. When a Mortgagee Policy has been issued insuring the lien of a construction loan to be fully taken up, renewed, extended or satisfied by a new loan, the premium on the Mortgagee Policy insuring the lien of the new loan shall be at the currently promulgated minimum Basic Premium Rate;
    
2. Provided however, if the Mortgagee Policy insuring the lien of the new loan is in an amount in excess of the amount of the Mortgagee Policy insuring the lien of the construction loan, the premium shall be the greater of

1.   The currently promulgated minimum Basic Premium Rate, or

2.   The excess of the currently promulgated Basic Premium Rate on the amount of the Mortgagee Policy insuring the lien of the new loan less the currently promulgated Basic Premium Rate on the amount of the Mortgagee Policy insuring the lien of the construction loan.

3. On Mortgagee Policies issued on multiple loans to fully take up, renew, and extend or satisfy a mortgage securing a construction loan insured by a single Mortgagee Policy, the new policies being in the amount of the new mortgages, the premium for the larger Mortgagee Policy shall be as set out in section A or B of this rule, using the total of the new mortgages as the amount on which to calculate the premium. The additional policy(ies) shall be issued at the minimum Basic Premium Rate

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R-19. Amendment of or Endorsement Amending Exception in Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) - Applicable as provided in Rule P-20. A Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) may be amended in accordance with Rule P-20 upon the payment of an additional premium of $20.00. This rate rule shall be applicable to any Interim Binder currently effective but shall be applicable only to Mortgagee Policies issued from and after July 24, 1980. A separate charge of $20.00 shall be made for any such amendment to or endorsement of a Mortgagee Policy issued subsequent to the issuance of an Interim Binder and no credit shall be given for any such amendment or endorsement to any prior Interim Binder.

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R-20. Owner Policy After Construction Period - When an Owner Policy has been issued in the manner provided in Rule P-8.A. with a face amount of $5,000,000 or more and the premium for said Owner Policy has been paid in full, upon completion of the improvements on the property covered thereby, the owner's acceptance thereof, and satisfactory evidence to the Company that all bills for labor and materials have been paid in full, an Owner Policy may be issued by the Company which issued the previously issued Owner Policy, at any time up to one year after such completion of improvements, covering the same land, or a portion thereof, covered by said Owner Policy and covering no other land, and the premium for the new Owner Policy shall be the currently promulgated minimum policy Basic Premium Rate. Should the amount of the new Owner Policy exceed the amount of the previously issued Owner Policy, the premium for the new Owner Policy shall be at (i) the Basic Rate plus (ii) the currently promulgated minimum policy Basic Premium Rate less (iii) the currently promulgated premium for the previously issued Owner Policy or, in the event the previously issued Owner Policy was issued for a simultaneous issue rate under Rule R-5B, the currently promulgated premium for the Mortgagee Policy referred to in said Rule R-5B.

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R-21. Multiple Owner Policies on Same Land - Upon request when two or more owner policies (excluding owner policies covering leasehold estates) covering the same land and covering no other land are issued simultaneously to different insureds who are the grantor(s) (or seller(s)) and grantee(s) (or purchaser(s)) in the transaction pursuant to which policies are to be issued (e.g., a buyer and a seller or a fee estate and easement on the fee), a separate policy shall be issued to all grantors (or sellers) and all grantee(s) (or purchasers) in accordance with Rate Rule R-3. The rate for the first policy issued shall be the Basic Rate and the rate for the next policy(ies) shall be 30% of the basic premium for such amount for each policy(ies) issued. Should the aggregate amount of the next policy(ies) exceed the amount of the first policy, the premium for the next policy(ies) shall be at the basic rate plus 30% of the basic premium for the first policy, less the Basic Rate for the first policy. In no event shall the charge for any policy issued pursuant to this rule be less than the minimum promulgated rate.

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R-22. Owner and Leasehold Policies - Upon request when an owner policy ("Owner Policy") insuring fee simple and an owner policy insuring a leasehold estate ("Leasehold Owner Policy") wherein the leasehold owner policy or policies issued cover part or all of the land insured in the owner policy and cover no other land and the owner policy bears the same date as and specifically excepts to the leases creating the estates insured in each leasehold policy issued pursuant to this regulation, in amounts as required by Rate Rule R-3, the rate for the owner policy shall be the basic rate. The rate for each leasehold policy so simultaneously issued will be thirty (30%) percent of the rate for the owner policy up to the amount of the owner policy. The rate on the aggregate amount of any leasehold policy (or combined amount of all leasehold policies if more than one is issued) exceeding the owner policy shall be the difference between the basic premium rates of the owner policy and the basic premium rate for the leasehold policies (or combined amount of all leasehold policies if more than one is issued). In no event shall the charge for any policy issued pursuant to this rule be less than the minimum promulgated rate.

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R-23. Commitment Fee - Applicable only as provided in Rule P-14b. A premium charge of $200.00 shall be made for issuance of each Owner Title Policy Commitment or Owner Title Policy Commitment for eminent domain proceedings to the Texas Department of Transportation. A credit of $200.00 shall be given upon issuance of an Owner Title Policy to the Texas Department of Transportation by the company, which issued the previously issued commitment. No credit shall be allowed if title is not conveyed within thirty-six (36) months from the date of the original Commitment.

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R-24. Applicable only as provided in Procedural Rule P-29 a premium of $5.00 shall be charged for addition of the language "Company insures that standby fees, taxes and assessments by any taxing authority for the year ________ are not yet due and payable."

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R-25. Premium for Commitment for Title Insurance to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation - This Rule R-25 is applicable only to a Commitment for Title Insurance issued pursuant to Procedural Rule P-15. A premium equal to the premium for a $25,000.00 policy as specified in the then current promulgated Basic Rate for title insurance shall be charged to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation for each Commitment. It shall be permissible to collect the premium charge following issuance of the Commitment.

In that the agent's retained portion of the premium for the Commitment is attributed for: (i) title search, (ii) title examination, and (iii) issuance of the Commitment, the agent's portion of the premium shall be retained by and paid to only the agent licensed in the county where the property described in the Commitment is located.

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R-26. Premium for Limited Pre-Foreclosure Policy (Form T-98) And Limited Pre-Foreclosure Policy Downdate Endorsement (Form T-99)

A.   A Limited Pre-Foreclosure Policy must be issued in accordance with the requirements of Procedural Rule P-43. In this Rule, the term "Foreclosing Mortgage" means the deed of trust, or other lien, specifically described under the section entitled Foreclosing Mortgage in the Limited Pre-Foreclosure Policy Combined Schedule (Form T-98).

B.   The premium for the Limited Pre-Foreclosure Policy must be calculated in accordance with Steps One through Four below:

Step One:  Determine the smaller of:
(i)   the outstanding loan balance on the loan secured by the Foreclosing Mortgage; and,

(ii)  the value of the land secured by the Foreclosing Mortgage. If the proposed insured does not provide the Company with some written evidence of the value of the land, use the outstanding balance of the loan secured by the Foreclosing Mortgage as the Step One numerical figure.

Step Two:  Then use the numerical figure derived in Step One to calculate a full (undiscounted) premium amount using the Schedule of Basic Premium Rates for Title Insurance under
Rate Rule R-1.

Step Three:  Then multiply the premium amount calculated under Step Two x .40.

Step Four:  The premium for the Limited Pre-Foreclosure Mortgagee Policy is the greater of:

(i)   The minimum basic premium; or

(ii)  The premium calculated after completing Step Three above. 

C.   The title insurance agent's portion of the premium shall be retained by and paid to only the title insurance agent licensed in the county where the land described in the Limited Pre-Foreclosure Policy is located because the title insurance agent's retained portion of the premium for the Limited Pre-Foreclosure Policy and the Limited Pre-Foreclosure Policy Downdate Endorsement is attributed for

(i)    title search;

(ii)   title examination; and, 

(iii)  issuance of the Limited Pre-Foreclosure Policy and Limited Pre-Foreclosure Policy Downdate Endorsement.

D.  The premium for each Limited Pre-Foreclosure Policy Downdate endorsement shall be $50.00.

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R-27.  Texas residential limited coverage junior mortgagee policy

A. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) is issued pursuant to P-46, the premium shall be as follows:

(i)    For policy amount up to $10,000, the premium shall be $150.00.

(ii)   For policy amount more than $10,000, but not more than $50,000, the premium shall be $175.00; and

(iii)  For policy amount more than $50,000, but not more than $100,000, the premium shall be $200.00.

B. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and the Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement is issued in accordance with Rule P-46.B, the premium for such endorsement shall be $25.00.

C. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) is issued in accordance with Rule P-46.C, the premium for such endorsement shall be $50.00.

D. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (Form T-46) is issued in accordance with Rule P-46.D, the premium for such endorsement shall be $25.00.

R-28. Premium For Equity Loan Mortgage Endorsement (T-42) and Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1)

R-29. Premium for Restrictions, Encroachments, Minerals Endorsement (T-19) and Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1)

R-29.1. Premium for Minerals and Surface Damage Endorsement (T-19.2), and Minerals and Surface Damage Endorsement (T-19.3)

R-30. PREMIUM FOR ACCESS ENDORSEMENT (T-23)

When the Access Endorsement (T-23) is issued with a Mortgagee Policy of Title Insurance (T-2) or Owner Policy (T-1) in accordance with Rule P-54, the premium for the Access Endorsement (T-23) shall be $100 for each policy.

R-31. PREMIUM FOR NON-IMPUTATION ENDORSEMENT (T-24)

When the Non-Imputation Endorsement (T-24) is issued with an Owner Policy (T-1) in accordance with Rule P-55, the premium for the Non-Imputation Endorsement (T-24) shall be 5% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

R-32. PREMIUM FOR CONTIGUITY ENDORSEMENT (T-25)

When the Contiguity Endorsement (T-25) is issued with a Mortgagee Policy (T-2) or an Owner Policy (T-1) in accordance with Rule P-56, the premium for the Contiguity Endorsement (T-25) shall be $100 for each policy.

R-33. PREMIUM FOR ADDITIONAL INSURED ENDORSEMENT (T-26)

When the Additional Insured Endorsement (T-26) is issued with an Owner Policy in accordance with Rule P-57, the premium for the Additional Insured Endorsement (T-26) shall be 10% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

R-34. PREMIUM FOR ASSIGNMENT OF RENTS/LEASES ENDORSEMENT (T-27)

When the Assignment of Rents/Leases Endorsement (T-27) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-60, the premium for each Assignment of Rents/Leases Endorsement (T-27) shall be $0.00.

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