national marine bankers association november 12 – 14, 2006 key largo, florida victor i. koock
TRANSCRIPT
![Page 1: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/1.jpg)
National Marine Bankers AssociationNovember 12 – 14, 2006
Key Largo, Florida
Victor I. Koock
![Page 2: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/2.jpg)
Here’s The Problem
BORROWER/OWNER
CATERPILLARFiled July 17
INSURANCEPlaced July 8
![Page 3: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/3.jpg)
Here’s Another Problem
ANOTHER MORTGAGE(FILED BUT DID NOT APPEAR IN THE ABSTRACT)
GECC(RECORDED WITH COAST GUARD)
ENERGY VII
![Page 4: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/4.jpg)
Try This Problem
PRUDENTIAL INSURANCE COMPANY
92 , 000 ,000.00$ .
Fleet Mortgage
TYPOGRAPHICAL ERROR!!!
![Page 5: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/5.jpg)
One Last Problem
CHAPEL SANTIAGO
JONES
SPARKMAN
MARYLAND NATIONAL BANKFROMKEY BANK
![Page 6: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/6.jpg)
Sent a bunch of lawyers’ kids to college
All involved title issues that were difficult to uncover even with the best due diligence
Title insurance affords protection for those types of losses
COMMON THREADS
![Page 7: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/7.jpg)
Title insurance protects the lender for lack of priority of the Preferred Mortgage over any lien for Necessaries
Title insurance covers Cost of Defense
Caterpillar Case
![Page 8: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/8.jpg)
Title Insurance Covers:
Fraud
Invalidity or Unenforceability of Preferred Mortgage
Priority of another lien over the Preferred Mortgage
Cost of Defense
Energy VII / GECC Case
![Page 9: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/9.jpg)
Failure of the insured Preferred Mortgage to be a Preferred Mortgage as defined in the U.S. Code
Cost of Defense
Prudential and the Missing Decimal
![Page 10: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/10.jpg)
Title Insurance Covers:Title to vessel being vested other than as
insuredDefects in the TitleFraudFailure of the insured mortgage to be a
Preferred MortgageCost of Defense
MADAM CHAPEL
![Page 11: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/11.jpg)
1) Title to the vessel is as it has been represented to be;
2) The Vessel is free of liens and encumbrances;
3) The Transaction is free of fraud, errors or mistakes;
4) Monies are distributed properly;
5) Preferred Mortgage has the Priority that was expected.
Five Significant Points Covered byTitle Insurance
![Page 12: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/12.jpg)
COST OF DEFENSE
![Page 13: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/13.jpg)
Disclosure Form for Lenders
![Page 14: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/14.jpg)
Delayed Document Filings (more than 30 days after execution date)– 88.1% of vessel abstracts had delayed document filings– 80.2% of vessel abstracts had delayed document filings
that were either a Bill of Sale or a Preferred Mortgage Claims
– 19.8% of vessel abstracts had one or more claims filed– 7.9% of vessel abstracts had one or more unsatisfied
claims (no marshal’s sale)
Highlights from Study of more than 100 Vessel Abstracts
![Page 15: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/15.jpg)
Out of Registry or Deleted from Documentation at one time: – Foreign or State Registry
2.8% foreign registered at one time 9.9% state registered at one time
– Other Deletions from Documentation - 15.8% Date Errors - 11.8% of vessel abstracts contained one or more
date errors Transfers of Interest and Preferred Mortgages
– Vessels were sold an average of 3.96 times– Vessels were mortgaged an average of 3.16 times
Highlights from Study of more than 100 Vessel Abstracts
![Page 16: National Marine Bankers Association November 12 – 14, 2006 Key Largo, Florida Victor I. Koock](https://reader035.vdocument.in/reader035/viewer/2022081603/56649e725503460f94b715a5/html5/thumbnails/16.jpg)