381.400. Definitions.

MISSOURI STATUTES AND CODES

Definitions.

381.400. 1. As used in this section and sections 381.403and 381.405, the following terms mean:

(1) "Construction completion guaranty", an agreementwherein a person guarantees or warrants that the improvementswhich are the subject of the guaranty will be completed or thatthe funds deposited under the guaranty are sufficient to completesuch improvements;

(2) "Construction deposit guaranty", an agreement wherein aperson agrees to accept funds from a mortgage lender, owner orpurchaser of real estate or agrees to assure the properapplication of funds already paid to a third party to pay for thecost of construction of improvements on such real estate, fordisbursement to parties furnishing labor or material for theconstruction of such improvement and wherein the personguarantees to the party depositing the funds against loss frommisapplication of the funds or inability to obtain a refund ofthe funds when such party is entitled to a refund thereof;

(3) "Construction escrow agreement", an agreement wherein aperson agrees to accept from a mortgage lender, owner orpurchaser of real estate funds to pay for the cost ofconstruction of improvements on such real estate, fordisbursement to the owner, general contractor, or partiesfurnishing labor or material for the construction of suchimprovement, but which does not contain any guarantee to theparty depositing the funds against loss from misapplication ofthe funds or inability to obtain a refund of the funds. Theissuance of title insurance against mechanics' liens does notconstitute a construction deposit guaranty or constructioncompletion guaranty;

(4) "Insured closing letter", a statement issued by a titleinsurance company to a party to a real estate transaction,acknowledging that the title insurance agency or agent closing atransaction in connection with which the title insurancecompany's policy is being issued, is a duly licensed andauthorized agency or agent of the title insurance company, thatthe performance of settlement services by such agency or agent iswithin the scope of its authority as agency or agent for thetitle insurance company, and promising to be responsible for themisapplication of funds or documents by the agency or agent orits failure to follow written instructions in connection with theclosing;

(5) "Licensee", a title insurance company organized underthe laws of this state or operating under a certificate ofauthority in this state, or a title insurance agency or agentlicensed by the director.