Chicago Title Endorsement Handbook - Chicago, IL

Non-ALTA 2006 • 335 INTERIM MECHANICS LIEN ENDORSEMENT A (IMLA) The IMLA endorsement is available for loan policies only. It provides limited priority coverage for a lender when there is ongoing construction on the insured property based upon the collection of 1) statutory documentation that is designed to establish a statutory proper payment defense, and 2) non-statutory lien waivers. This limited coverage is provided on a draw by draw, or interim basis as the construction project progresses. This endorsement insures the lender against loss or damage by reason of liens which arise from paid-for-work as disclosed by the documentation provided to the title company. In essence, the endorsement insures the lender that the parties shown as paid on the documentation are, in fact, paid. The coverage provided by the IMLA is tantamount to liability for misdisbursement. The IMLA endorsement does not provide the lender with coverage for 1) undisclosed work on the owner’s statement or general contractor’s statement, or 2) cost increases or extras not disclosed by the contractor. Interim Mechanics Lien Endorsement A (IMLA)