381.405. Construction and guaranty agreements not authorized for title insurance companies--title insurance against mechanic liens and insured closing letters, authorized.

MISSOURI STATUTES AND CODES

381.405. Construction and guaranty agreements not authorized for title insurance companies--title insurance against mechanic liens and insured closing letters, authorized.

Construction and guaranty agreements not authorized for titleinsurance companies--title insurance against mechanic liens andinsured closing letters, authorized.

381.405. No licensee may enter or offer to enter into any:

(1) Construction deposit guaranty;

(2) Construction completion guaranty;

(3) Contract of guaranty or suretyship wherein the licenseeagrees to answer for the debt, obligation or default of a thirdparty, including, but not limited to, statements ofresponsibility for the acts or omissions of parties which wouldconstitute an insured closing letter if the party on whose behalfthe statement is made had been a title insurance agency or agentfor the issuer. The provisions of this section shall notprohibit licensees from issuing title insurance againstmechanics' liens, nor prohibit a title insurance company fromissuing insured closing letters regarding its own duly licensedagency or agent.