N.M. Admin. Code § 13.14.1.7 - DEFINITIONS
For definitions of terms contained in this rule, refer to Section 59A-30-3 NMSA 1978, unless otherwise noted below.
A.
"Abstract plant" means title plant.
B.
"Agency" means a business
entity as defined in Subsection B of Section
59A-12-2 NMSA 1978, including a
sole proprietorship that transacts title insurance business.
C.
"ALTA" means the American
Land Title Association.
D.
"Basic premium rate" means the premiums set from time to time by
the superintendent for an original owner's policy.
E.
"Commitment" means an NM form
6 issued to a customer.
F.
"Day or Days" means, unless otherwise specified:
(1) one to five days excludes weekends and
state holidays; and
(2) six days or
more, includes weekends and holidays.
G.
"Down date" means the date
that a subsequent search and examination of the public records affecting title
to property is completed and effective.
H.
"Escrow" means a transaction
in which funds are delivered or given to a person not otherwise having any
right, title, or interest in them, to be held by that person for delivery or
disbursement to another person upon the happening of a specified event or the
performance of a specified condition.
I.
"Escrow account" means an
account established pursuant to Sections
58-28-4 or
59A-12-22 NMSA 1978.
J.
"Escrow funds" means all
monies the issuing title insurance agency or title insurer receives when
conducting escrows, settlements, closings or tax deferred exchanges in
connection with the issuance of a title insurance policy.
K.
"Escrow instructions" means a
dated, written, and signed agreement of the parties to an escrow, including a
duly appointed agent or attorney-in-fact, specifying the event or condition
upon which the escrowed funds shall be delivered or disbursed. This term shall
include a purchase agreement, or lender's instructions, and modifications of
escrow instructions.
L.
"Escrow officer" means an individual affiliated with a title
insurance agency or title insurer who is directly responsible for the
settlement of a real estate transaction, as evidenced by their signature on a
settlement statement.
M.
"Extra chain of title" means a parcel having a separate chain of
title from the original chain being searched.
N.
"Funds subject to immediate
withdrawal" as used in Subsection F of Section
59A-30-3 means money collected
and deposited in an escrow account with a financial institution held in the
name of and subject to the control of a title insurance agency, a title
insurer, or third party fiduciary for a real estate closing, that can be
totally disbursed immediately by cash withdrawal or cashier's checks without
relying on the balance created by other deposit in the account not made as part
of the real estate closing for which disbursement is being made.
(1) The following funds are subject to
immediate withdrawal collected on the day of deposit:
(a) cash;
(b) received wired funds managed by the
federal reserve system;
(c) a
cashier's check or certified check which is issued payable to the title
insurance agency, title insurer, or third party fiduciary and has been
deposited to its account at the financial institution which issued it; and
guaranteed by the financial institution as collected funds for immediate
disbursement;
(d) a cashier's check
which is payable to and was purchased by the title insurance agency, title
insurer, or third party fiduciary, and has been deposited to its account at a
financial institution and guaranteed by the financial institution for immediate
disbursement.
(2) The
following funds are considered available funds on the next business day after
day of deposit:
(a) treasury checks, postal
money orders, federal reserve bank checks and federal home loan bank
checks;
(b) state of New Mexico and
local government checks which have been deposited at a financial institution
located in New Mexico using a special deposit slip if required by the
depository institution for next day availability;
(c) cashier's checks, certified check and
teller's checks which have been deposited at a financial institution located in
New Mexico using a special deposit slip if required by the depository
institution for next day availability.
(d) All other modes used for the transfer of
monies will be available funds on the earliest date they are considered
collected funds in accordance with Regulation CC, "Availability of Funds and
Collection of Checks" established by the board of governors of the federal
reserve system as amended.
(e) Any
funds received under the automated clearing house (ACH) network shall not be
considered "available funds" until collected.
O.
"HECM" means a home equity
conversion mortgage administered by the federal housing administration
(FHA).
P.
"HUD" means
the United States department of housing and urban development.
Q.
"Loan policy" means an NM
form 2 issued to a customer.
R.
"Mortgage" means either a mortgage or deed of trust.
S.
"One to four family residential
property" means any real property primarily designed and used for
residential occupancy of from one to four families, including a residential
unit in a condominium if such unit is designed and used primarily for occupancy
by one to four families, regardless of the total number of units in the
condominium complex.
T.
"Owner's policy" means an NM form 1 or NM form 34, as applicable,
issued to a customer.
U.
"Pro
forma policy" means a sample of an owner's or loan policy prepared prior
to issuance of the policy, with completed schedules A and B and endorsements,
identifying the proposed insured, the exceptions that are proposed to be placed
in the final policy to be issued, and the name of the title insurer and title
insurance agency, including samples of endorsements.
V.
"Referrer" means any person
in a position to refer business to a title insurer or title insurance
agency.
W.
"Simultaneous
Issue" means issuing two or more policies bearing the same effective
date and insuring part or all of the same land.
X.
"Title plant" means a
collection of real estate records meeting the requirements of Section
59A-12-13 NMSA 1978.
Y.
"Title rate case" means a
proceeding that results in the establishment of rates, or charges pertaining to
the business of title insurance and includes, without limitation, the title
rate case required by Section
59A-30-8 NMSA 1978.
Z.
"Unusual complexity" means
when circumstances cause an unusually long search or complicated examination as
determined by a reasonable title insurance agent or title insurer.
AA.
"Vestee" means the person or
persons in whom title to the land is vested.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.