It has been brought to Docutech’s attention that some clients prefer to attach exhibits to certain security instruments to include more comprehensive information for derivation clauses beyond the standard previous recording information pertaining to the derivation of title, i.e., instrument date, instrument number, etc. Derivation clauses are found under the “Transfer of Rights in the Property” section in security instruments for Kentucky and Tennessee.
To accommodate this request, we have created two new fields:
- 121779 – Populate Derivation Clause
- 121780 – Derivation Clause Exhibit Text Description
When field Populate Derivation Clause (121779) is set to “No”, the regular derivation clause language will still print on the security instrument, but will have blank lines instead of populated information. In addition, field Derivation Clause Exhibit Text Description (121780) will print below the unpopulated derivation clause, which can be populated with an appropriate reference to an attached exhibit, e.g., “SEE THE ATTACHED EXHIBIT ‘A’ FOR THE DERIVATION CLAUSE INFORMATION WHICH IS INCORPORATED HERE BY REFERENCE,” or something similar.
Clients who are satisfied with the current derivation clause information will not have to take any action. By default, all fields and text will continue to function as they have in the past.
This new functionality will be made available for the following Kentucky and Tennessee security instruments:
- Cx326 – KY Mortgage
- Cx484 – KY Mortgage Second
- Cx1404 – HELOC Mortgage – KY
- Cx19375 – FHA KY Mortgage
- Cx351 – TN Deed of Trust
- Cx509 – TN Deed of Trust Second
- Cx1389 – HELOC Deed of Trust – TN
- Cx19400 – FHA TN Deed of Trust
These changes will take effect on May 30, 2018. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 263494