TITLE $~EWS ~ THE OFFICIAL PUBLICATION OF THE ~ AMERICAN LAND TITLE ASSOCIATION ® ~ "OUR 60th YEAR"

MAY, 1967 A MESSAGE FROM THE CHAIRMAN OF THE TITLE INSURANCE SECTION

MAY, 1967

I am indebted to our President, George B. Garber, for allowing me to write a message to our members, and I am going to take advantage of this opportunity to keep our members abreast of some of the actions taken at the Mid-Winter Conference. We were pleased to learn that our President had appointed a stand­ ing committee under the Chairmanship of Daniel S. Wentworth, Esquire, to study the new Federal Tax Lien Act and to cooperate with the Internal Revenue Service in order that the regulations to be used, in the administration of the law, be realistic. The Standard Title Insurance Accounting Committee made an interim report outlining the objectives of the Committee. In order that the Committee become a standing committee of the Association, the required steps were taken to amend the constitution and by-laws. The same procedure was followed with respect to the Young Title Men's Committee and all of us will be happy that the Committee will become a standing committee at the Denver Convention. On the recommendation of the Executive Committee, the Board of Governors authorized the Association to participate in a national con­ ference with the American Bar Association, provided the conference consists of not more than twelve members-six to be chosen by our Association and six to be chosen by the American Bar Association. If such conference is established, no resolution, statement or agree­ ment proposed by the conference will become effective before approval and ratification by the Board of Governors of our Association. The Standard Forms Committee had asked for direction in the development of a single form policy, and it was decided that the Com­ mittee be authorized to correct any ambiguities existing i.n the present forms and to proceed with the development of a single form policy reflecting these corrections, and further, to develop a new leasehold policy, either separately or to be incorporated as part of the single form policy. The proposed change of section names was referred back to the Planning Committee. It was a very fine meeting and it is too bad more could not see their way clear to attend. TITLE NEWS THE OFFICIAL PUBLICATION OF THE AMERICAN LAND TITLE ASSOCIATION

EDITORIAL OFFICE: Premier Bldg., 1725 Eye St., N.W., Washington, D.C. 20006 296-3671

FEATURES Don't Make A False Assumption 2 Fixtures and the Mortgage 7 Proposed Amendment to ALT A Constitution 13 Western Theme for Annual Convention 16

DEPARTMENTS Message from the Chairman, Title Insurance Section inside front cover

Dear Dickie 21

In the News 23

In Memoriam 29

Letters 31

Meeting Timetable inside back cover

ON THE COVER: John E. Griffith, Virgil Siepel, Victor VOLUME 46 Gillett, members of the Legislative Committee of the Land Title Association of Arizona, watch with satisfaction as Governor Jack Williams signs House Bill 79 into law. The Bill is the NUMBER 5 Arizona version of the ALTA Model Title Insurance Code and became law March 14, 1967, (John Griffith's birthday). Passage of the Bill, a milestone in Association history, is the culmination of years of work and the r esult of a fine cooperative 1967 effort on the part of Association members.

JAMES W. ROBINSON, Editor MICHAEL B. GOODIN, Assistant Editor and Manager of Advertising Page 1 DON'T MAKE A FALSE ASSUMPTION

By George B. Garber President, American Land Title Association Exe.cutive Vice President, Title Insurance and Trust Company, Los Angeles, and President, Pioneer National Title Insurance Co. Los Angeles, California

You never know what incident will launch a successful public relations effort. When President Garber was visiting in Texas, Carloss Morris suggested to him that a strong statement regarding the dangerous practice of buyers assuming mortgages without adequate title protection would not only be a public .service but would also be of benefit to ALTA members. Carloss Morris is a man who folloW's through! He drafted some copy, he made dozens of phone calls, he worked until a fine press release and this excellent article were developed. Newspapers and magazines all over the country have carried this story.

"Tight Money" Brings A New Hazard

s if tight money isn't causing to dangers facing them in the pres­ A enough trouble in the real es­ ent day situation. tate industry, a survey of recent As it is, the public little under­ lawsuits by the American Land stands nor appreciates the role Title Association indicates that played by real estate brokers and little-thought-of 1ega1 liabilities lenders in helping Americans ful­ may face anyone involved in the fill their dream of home ownership. purchase, sale, or financing of real In the finest tradition of free en­ estate. terprise, they risk invested capital Homebuyers, of course, should be and their own labor, skill, knowl­ made aware of a growing problem edge, and experience toward the that has arisen because of the achievement of this goal. Their scarcity of mortgage money and contribution to the various com­ the decline in new housing, but real munities they serve and to the na­ estate people should also be alert tion is t r e m e n d o u s. Hardly 2 calculated to bring them ease of lien claim. This stands as a mind is the added hazard brought direct claim on the property about by the increasing frequency for which the buyer, as the new with which existing mortgages are owner, may have to pay in assumed by the buyer. order to clear his title. Simi­ Here's how the problem arises: larly, there might be suits To get around the shortage of pending affecting the property mortgage money and new housing, or judgments rendered against more and more homebuyers are as­ the s e 11 er, foreclosures or suming ex i s t i n g mortgages as bankruptcy a c t i on s, or any part of the sale of older homes. number of claims or legal in­ All too often-and sometimes volvements w h i c h may defi­ upon the advice of a lender or a nitely cloud the title until they real estate broker-the buyer also are p r o p e r 1 y settled or re­ believes that the owner's title moved. policy fully protects him.. This The seller may have been is penny-wise and pound-foolish. married when he bought the Why? Because many actions of the h o u s e. In the meantime, he previous owner could have ad­ may have been divorced and versely affected the title of the remarried. In one s u ch case, new buyer. the second wife signed all the In some cases lenders or real es­ legal documents. The buyer tate brokers have advised buyers who didn't know the sellers that a title search may not be re­ well, never knew the difference quired or may have neglected to -u n t i 1 the first wife ap­ alert buyers to the need for ade­ peared with a c 1 a i m for half quate title protection. The broker the value of the house! It was who fails to stress the need for a a valid claim, too. title search may be leaving himself The previous owner could wide open for a lawsuit-and an have a Federal Income Tax adverse judgment-in case a de­ Lien for not paying all of his fect in title later develops. Further­ Federal Income Taxes. This be­ more, the homebuyer who fails to comes a lien against the prop­ protect himself by a title search erty. If not paid by the seller, and a title insurance policy could the new owner would have to be inviting disaster. Here is a pay the seller's back income warning: "Don't make a 'false as­ taxes or risk losing his home. sumption' in a real estate transac­ It could even be that the sel­ tion involving an older home." ler is dishonest and has mort­ Let's briefly review some of the gaged the house or has sold it more common pitfalls which con­ to someone else. front a homebuyer who is not cov­ These are just a few of the un­ ered by up-to-date title protection: fortunate things that might hap­ If the seller, during the pe­ pen to a h o m e b u y e r who relies riod he owned the property, upon a former owner's title policy, had a new sink installed and in a situation where an existing f a i 1 e d to pay the bill, the mortgage is assumed. There are, plumber may file a mechanic's of course, many other ways in 3 which his ownership, use, and pos­ tract is a common law duty session of the property could be to p e r f o r rn with care, skill, jeopardized. reasonable expedience and Of equal concern to the real es­ faithfulness the thing agreed tate person who is involved in such to be done and the negligent a transaction is the possibility of failure to observe any of the a lawsuit arising from his failure conditions is a tort, as well as to make known to the buyer all of a breach of contract." (38 Am the facts surrounding the purchase Jur 662). of the home. In many states real "Irrespective of contracts, if estate people can be held responsible the relationship of the parties for giving advice on the validity of is such that a duty to take title to real estate. There are many due care arises therefrom and cases on record where brokers have the party upon whom the duty been sued for giving this kind of rests is negligent, an action advice and have found it to be a in tort will lie." (Brokaw v. costly experience. Blacke-Foxe Mnitary Insti­ In a recent California case, a tute (Calif. 1950, 216 P2nd real estate firm represented to 53). their clients, the purchasers, (not "The ultimate test of a duty fraudulently) that a certain ranch to use care is found in the was encumbered by only one lien, foreseeability that harm may a deed of trust. Relying on this result if it is not exercised." representation, the clients leased (Conn. Sav. Bk. v. First Nat'l. the ranch for a period of one year Bk. [Conn. 1951] 84 A 2nd with an option to purchase. Shortly 267) . after moving onto the premises, Generally speaking, the de­ the clients discovered that there gree of care required of one, is was a second deed of trust on the graduated according to the property, whereupon they served danger attendant upon the ac­ notice of rescision of the lease and tivity which he pursues." (38 option and vacated the premises. Am Jur 678 ) . The Appellate Court, noting that We also find that a valuable con­ the real estate firm did not suggest sideration is not a prerequisite of or advise that a title search be a duty to exercise care. Even a made, a f f i r m e d the judgment volunteer or a stranger is liable against the real estate brokers. The for an injury negligently inflicted Court found that the brokers had on the person or property of an­ failed to exercise the degree of rea­ other. (38 Am Jur 659 ) . sonable care and ordinary diligence Along these lines, here is a real imposed upon them by law. hair-raiser: It is the case of Les­ What does it cost a broker to ter v. Marshall (1960 ) 143 Col. 189, give "free" advice? It can cost 352 P. 2d 786. In this case the plenty! In approaching this prob­ Reverend Marshall, a minister from lem, we refer to some of the funda­ Rawlins, Wyoming, requested a mental rules laid down by the na­ broker in Littleton, Colorado, to tion's authorities: locate a house for him. Through "Accompanying every con- another broker, Mr. Richard Hurd, 4 a house was located; and the buyer Federal Savings and Loan Associ­ handed the L i t t l e t o n broker a ation. Sometime later when the check for $900 to be transmitted to next payment on the deed of trust Mr. Hurd with a contract offer of became due, the buyer realized $18,000 for the house. The two that his title was in jeopardy. He brokers involved then entered into then filed suit against the broker a listing e x c h a n g e agreement, to recover $12,625.21, and a judg­ with Mr. Hurd representing the ment in that amount was rendered sellers. A deal was made at $18,- against the Littleton broker. The 500 for the house free and clear of broker insisted that there was no encumbrances. contract and no tort liability; that The buyer expressed concern his relationship to plaintiffs was a about getting clear title at the gratuitous one which imposed no time of the closing and was as­ legal obligations. sured by the Littleton broker that The Judge said: "One who by a this would all be handled by Mr. gratuitous prom i s e or other Hurd at the time the real estate conduct which he should realize transaction was closed. On August will cause another reasonably to 3, 1955, the closing took place at rely upon the performance of defi­ the office of Mr. Hurd. A settle­ nite acts of service by him, causes ment sheet presented by Hurd the other to refrain from having disclosed in detail various items such acts done by other available of receipts and disbursements, in­ means, is subject to a duty to use cluding the outstanding obligation care to perform such service or­ to the Industrial Federal Savings give notice that he will not per­ and Loan Association in excess of form-failure of defendants to $11,100. The buyer accepted deliv­ take even minor precautions con­ ery of a warranty deed which pur­ stituted negligence." And, quoting ported to convey the premises free from another case, he added these and clear of all liens and encum­ significant words: "The duty to brances. The buyer then endorsed use care in rendering a service his cashier's check in blank and arises not from a right to receive delivered it to Hurd. the service, but from the relation Again, after the c 1 o sing, the between the parties which the serv­ buyer expressed some apprehen­ ice makes." sion to the Littleton broker and So, the court found the de­ was again assured that he had fendant liable for his negligence, nothing to worry about and that whether or not there was any con­ everything would be taken care of. tract, and held that, the service The broker did not advise him to having been assumed, the duty to have the title cleared. use care in performing the service, In the meantime, Mr. Hurd made arose from the relation of the par­ the disbursements called for on the ties and the knowledge on the part closing statements, including the of the defendant that the plaintiff payment to the seller, the pay-off was relying on that service. $12,- of the second mortgage, and other 625.21 was a mighty steep price expenses, but failed to pay off for the broker to pay for having the indebtedness to the Industrial "assumed" that everything would 5 be "taken care of." real owners were abroad where the To add to the woes of the haras­ husband, an army officer, was on sed lender and the real estate duty) forged a deed to herself from broker, the present tight money the real owners, then "sold" the situation has seemed to influence property to innocent buyers. A an acceleration of dramatic exam­ Florida man "borrowed" a wife­ ples of title defects and losses. married to another man-to pose Murder, lively corpses who return as his spouse in buying a home­ from the dead, fraud, forgery, because a real estate man told him mix-ups in similar names, and a it would be easier to obtain credit galaxy of other "hidden hazards" if he were married. have snarled other titles of homes In Michigan, a series of forged and business property in 1966. deeds to homes . . . more than 50 T h e s e true cases dramatically in all ... came to light. Witnesses' demonstrate the value of title in­ and notaries' s i g n a t u r e s were surance: forged - or were signed by va­ A Florida case involved bizarre grants and skid row derelicts. In similarities in names. Two John Arizona, a husband conveyed prop­ Smiths and a "John Smith, Jr.," erty as "single" after murdering -each married to a woman named his wife. Mary-all m a d e claims on the There is one way the lender, the same piece of property. To make real estate broker, and the home­ matters more confusing, one of the buyer can all protect themselves in "John Smiths" (real names are mortgage assumption cases. That changed) got divorced and remar­ is for the lender and the broker ried-also to a woman whose name to advise the buyer that he has the was "Mary Smith." Another of the responsibility of obtaining a clear "Mary Smiths" was declared le­ title either through title insurance gally insane. Legal documents got or a legal opinion based upon an the various John and Mary Smiths a b s t r a c t of title-and for the confused and snarled the title. buyer to insist upon owner's title A Georgia man thought to have insurance. died in a hotel five years ago re­ appeared and sought to reclaim property that had been sold under court order. A "nagging wife" caused him to "take advantage" of the disaster to disappear u n t i 1 after her death. Fraud and forgery in real es­ tate are on the increase. A $155,- 000 loss was sustained in Michi­ gan on a forged mortgage release. In Texas, more than three million dollars in losses were sustained be­ cause of f o r g e d mortgage re­ leases. In Georgia, an adventuress, noticing a vacant home ... (the 6 "FIXTURE SECURITY TRANSACTION AND THE MORTGAGE"

BY MAURICE A. SILVER

Reprinted, from Title Comments, New J ersey Realty Title lnswrance Company, Newark, New Jersey

ow much time must elapse for H the incubation of new laws to hatch their problems? Prior to the passage of the Uniform Commercial Code, particularly Chapter 9, and since its enactment, N.J.S.A. 12A :9- 101 et seq., title men were engaged in discussions among themselves, voicing their concern with problems which, to them, seemed certain to arise. Exchanges of opinions with proponents of the measure at for­ ums and in lecture series left the title men with the impression of an assurance that, for the most part, the new statute was a consolidation, learned law professors and members as it were, of the various existing of the bar who were steeped in statutes relating to personal prop­ this field and in the drafting of the erty, making for uniformity of the act. And we may add that all this laws within the state, tending to­ in the face of the fact that Cali­ ward a uniformity of law across fornia in adopting the Code deliber­ state boundaries, setting up new ately omitted section 313 of Chap­ nomenclatures, with no startling ter 9, and we understand that Ohio changes in the relation of the se­ made the same deletion. cured transaction and the mortgage However that all may be, from covering real property. It simplified the point of view of the mortgagee the instruments creating the rights two situations may arise, one­ of the parties and the filing of the where the new fixture is introduced notice of the interest thus estab­ as part of the structure and the lished. All this in face of misgiv­ security interest is perfected by ings and criticisms in articles by filing a financing statement before 7 the mortgage on the realty is re­ allow the fixture and the financing corded; and the other-where the statement to remain, but with ap­ mortgage is first recorded and a propriate stipulations in the mort­ new fixture is introduced in the gage that the terms of the financ­ structure either to replace an exist­ ing agreement will be carried out, ing fixture or one that is an addi­ but on default, to declare the un­ tion. paid balance of the indebtedness The first situation should pre­ on the mortgage due and payable, sent no problem because the mort­ with an option reserved to the gagee is in control. The records on mortgagee to pay the balance due examination should disclose the on the fixture and add the sum to security interest, and if so disclosed the unpaid balance. The mortga­ the mortgagee has several courses gee will recognize that in any open to him. He may insist that the event .on default by the debtor the secured creditor be paid and the secured person has cumulative record cleared; he may, as an alter­ remedies, the removal of the fixture native, require that the secured and recovery of the balance due by creditor not only subordinate his reducing it to a judgment against lien to that of the mortgage but the debtor, in accordance with the that, insofar as the mortgagee is security agreement which is the concerned, he waive the right of contract setting forth the terms removal of the fixture and look only and obligations of the parties. to the owner-mortgagor for pay­ Section 313 of Chapter 9 excludes ment. There may be a question from its effect "goods incorporated where this subordination and the into a structure in the manner of stipulations are to be recorded so lumber, bricks, tile, cement, glass, that the assignee of the secured in­ metal work and the like." No se­ terest may be put on notice. Section curity in these elements exists, un­ 316 permits subordination by agree­ less the structure remains personal ment by person entitled to priority. property. But there are a variety The statute makes provision for of goods which may be the subject the release by the secured party of of a security interest and which all or part of any collateral de­ may become part of the structure. scribed in the financing statement. And here the construction mort­ This section ( 406) recites the neces­ gagee must pay especial attention sary contents of the release. A sub­ to the record for financing state­ ordination agreement or limited re­ ments as each advance is made. To lease in favor of the mortgagee a degree the mortgagee may find may be said to be included in this a protection under the filing sys­ provision. tem, but only to a degree. Kripke, The mortgagee while still in con­ in his article, "Fixtures Under the trol, may assess the facts and con­ Uniform Commercial Code," 64 clude that the fixture is not Colum. L. Rev. 44, at page 71 et essential to the proper function of seq., poses certain suppositive situ­ the property and its removal on ations which create a certain hazard default, will not materially result to the lender. We cannot detail in a depreciation of his security. these situations, but the problem is He may, if the situation warrants, stated in terms of advances made 8 before the fixtures are attached; fixture, have been entered into, and or after the attachment; where whether any financing statements there is a commitment to make def­ have been executed. The necessary inite advances by the lender, etc. steps to secure the position of the To complicate matters, Mr. Kripke mortgagee should then be followed. points out that the term "attach" The Uniform Commercial Code does not mean a physical connec­ makes no attempt to define a fix­ tion. Under the statute it has its ture. Each state is left to make its own connotation. Its definition is own determination. New Jersey in 9-204, that is, an, attachment oc­ prior to the Code subscribed to the curs when there is an agreement "institutional doctrine" of fixtures, between the parties which is con­ that is, a fixture becomes part of cluded in accordance with the stat­ the realty, not because of the man­ ute. ner in which it was affixed to the We would normally expect in freehold, but as an essential integral each case of an advance under a part of the function of the building construction mortgage to rely on to which it is attached. The fixtures the record for filed financial state­ are basic to modern living. See ments, even though in such cases Domestic Electric Co. v. Mezzaluna, we deal with a purchase money se­ 109 N .J .L. 57 4, 162 A. 722 ; RUSS curity interest. Section 302 states Distributing Corp. v. Lichtman, 111 that a financial statement must be N.J.L. 21, 166 A. 513; and Future filed to perfect all security inter­ Building & Loan Association v. ests, except, under (d), "a purchase Mazzocchi, 107 N.J.E. 422, 152 A. money security interest in consumer 776. The Code, in its plan to favor goods; but filing is required for a the holder of the secured interest fixture under 12A :9-313 - - -." How­ abolished this doctrine. Attention ever, sections 312 and 313 may mod­ is called to this result to urge the ify section 302, as to possession of title attorney to move with caution. the collateral and section 313 with We reach the second situation respect to subsequent advances on referred to in our opening state­ a prior encumbrance "without ment-a mortgage first recorded, knowledge of the security interest and the subsequent installation of and before it is perfected." Until the fixture and the filing of the these sections are clarified by our financing statement. Here the prob­ courts it is suggested that in cases lem has been actually hatched. At of construction mortgages, as each least two cases, replacing existing advance is to be made, not only fixtures covered by the mortgage, should the records be examined, but a heating system in one and the as part of the usual affidavits ob­ kitchen equipment in the other, tained with each advance to negate have come to our attention. In possible mechanics' liens, the owner neither case was the mortgagee's anrl the contractors for the owner consent obtained, nor in fact noti­ should set forth whether any fi­ fied of the fact of replacement. In nancing agreements for fixtures to both cases a default on the secured be incorporated into the building transaction and on the mortgage or as a fixture which, in New Jer­ was followed by a proceeding to sey, was known as the institutional foreclose the mortgage.

9 We pause to recall the early dia­ gagee is, for all practical purposes, logue that the installation of new during the life of his mortgage, a fixtures or the replacement of the co-owner, whose interest may, in old with the new, in fact enhance fact, be greater than the actual the value of the mortgagee's se­ equity of redemption of the record curity. He then has no cause for owner. While this may vest the complaint if the secured creditor mortgagee with a veto power under is given preferential treatment. certain circumstances, when the fix­ This is only surface true, particu­ ture is by way of replacement, it larly in the case of the substituted does make for an opportunity for all fixture. The Code leaves the prior parties in interest to spell out a mortgagee in a position of disad­ more equitable agreement, where vantage with the value of his secur­ the rights of the secured party and ity diminished. A secured creditor the mortgagee are recognized and is given the right to remove the their duties and remedies may be fixture subject to the obligation to detailed. reimburse the real property encum­ We return to the default on the brancer for physical injury to the mortgage and approach the institu­ structure resulting therefrom, "but tion of proceedings to foreclose. not for any diminution in value to Perhaps for the first time the the real estate caused by the ab­ financing statement is disclosed to sence of goods removed or by any the mortgagee. How is he to treat necessity for replacing them." In this creditor whose position is an short, there is no obligation on the anomalous one? His interest is not part of the secured creditor to in the real property, and yet well make the mortgagee whole, to re­ interlaced with that property be­ store the property to its prior con­ cause of the nature of the fixture. dition. The inequities are obvious. Should the secured creditor be ig­ We suggest that the Code be nored, relegated to, and limited by, amended to make it obligatory on the remedies outlined in the Code'! the part of any person who supplies Should he be made a party defend­ new fixtures, and particularly those dant, and if he is, is he a proper who replace the old, to examine the or necessary party? If he is made record for mortgages and obtain the a party, should his inclusion be approval of the holders to such in­ limited, merely praying that he dis­ stallation. Such approval or consent close the amount due on his security to be endorsed on the financing and permit him to participate in statement as part of the record, not the proceeds of the sale, if any, only to apprise future assignees of and bar him and his claim and the fact but to avoid any conflict right in the fixture, or should he among the parties as to the facts. be joined to compel him to remove The failure to obtain that consent, his fixture before a day stated? If or the failure to secure the endorse­ he is to participate in the proceeds ment, should be deemed to be a of the sale how does he stand-as waiver of the right of removal as a subsequent lienor, on an equal against non-assenting mortgagees, footing with the mortgagee, or does their assignees or purchasers under he stand in the shoes of the mortga­ a foreclosure proceeding. The mort- gor, only as to any surplus? If he 10 is on an equal footing with the called upon to agree to join in the mortgagee, and in the event of a foreclosure proceedings and that deficiency, does he participate pro­ the security interest be simultane­ portionately with the mortgagee? ously foreclosed; that should the If he participates in the proceeds, secured party refuse to join in this except in case of a surplus, does action that he be ordered to remove it not enlarge his rights and reme­ the fixture on or before a date dies under the Code? Does it not stated and he pay the mortgagee bestow upon him the status of the or the purchaser at the sale a sum holder of a lien on the realty, again to be determined to reimburse him not contemplated by the Code? for the cost of repair of any physi­ These are the many questions cal injury, or in the alternative, which the courts may in time and at the option of the mortgagee answer, or qualify the relative or purchaser at the sale, the un­ position of the parties; or which paid balance due on the security the legislature may in due course agreement less the sum represent­ put to rest. There is pending, as ing the cost of repair of any physi­ this is written, a case before our cal injury, be paid to the secured Supreme Court involving some of party in full satisfaction of his the questions propounded. The issue claim. is, we believe, one of first impres­ If on the other hand the secured sion in New Jersey and elsewhere. party agrees to join in the foreclo­ Whether the Court's review will sure proceeding, then the order to give us answers to some of the sell should stipulate that the real questions or supply us with a road property and the fixture be sold, map will be awaited with interest. but that a bidder at the sale make It occurs to us that there may be separate bids for the real estate a method by which the issue of the and the fixture. The amounts in rights of the parties may be deter­ these separate bids will represent mined without the need of displac­ the separate interests. The judg­ ing the priority position of either ment of the court would bar all claimant. And this, we believe, rights including the right of the may be accomplished within the secured party in the fixture. Should framework of the Code. The pro­ a deficiency occur after the bid for posal recognizes that the reader the fixture, the secured party would may find that it raises new prob­ still have his remedy to sue the lems, or that it is unworkable, or debtor. The problem may arise that the Court's jurisdiction is when there are no bidders and the questionable. mortgagee makes the usual nomi­ The proposal is based upon one nal bid at the sheriff's sale. Some of the remedies under section 501, provision is necessary in that even­ that is, the right to "foreclose or tuality, perhaps reverting to the otherwise enforce the security in­ situation when the secured party terest by any available judicial pro­ refuses to participate in the pro­ cedure." We suggest, then, that ceedings as indicated above. As a the secured party be joined as a counter suggestion it may be proper party; that among the pray­ proper to penalize the mortgagee ers for relief the secured party be who makes a nominal bid without a

11 fair bid for the fixture to permit ble solution, if there is not too the secured party to remove the great a disparity in the bids for fixture without reimbursing the the realty. The court may have mortgagee for the cost of repair. other means of striking a balance. The purchaser, other than the mort­ In striking a balance pre-Code gagee, who fails to make a fair bid adjudications relating to the mort­ for the fixture should be placed in gage and fixture subsequently an­ the position of the mortgagee with nexed may be utilized with profit. like result. A leading case in New Jersey is The requirement in the suggested Campbell v. Roddy, 44 N.J.E. 244, proceeding for separate bids by the 14 A. 279, frequently cited and same bidder, is essential to the followed, holding that the lien of scheme. It assures the unity of the chattel mortgagee should be ownership of the realty and the protected, so far as it would not fixture without which the funda­ diminish the security which the real mental purposes are defeated. A estate mortgagee would have had situation may, however, arise pre­ if the annexation had not been senting a problem under this setup made. The problem may then be -A's bid for the realty may be reduced to one of fact. greater than B's, but less than B's The suggested proceeding is an for the fixture. The solution must attempt to preserve the respective be sought in the court's broad and rights of the parties within their inherent equity powers. Here the specific area of interest without court may determine from the facts doing violence to their respective which bid serves the cause of jus­ rights if they pursued separate tice. The court may determine paths to sustain such rights. Only that the fixture has in fact en­ a pragmatic testing in the proper hanced the value of the interest of tribunal can determine the validity the mortgagee in the building, and and practicality of such measures. allow B's bid to stand as an equita- We invite your reaction.

Are you a human dynamo of persuasion?

Do your employees, stockholders and various segments 0 1f your public all respect and admire you?

Is every activity of your firm reported accurately, promptly and in the best possible light by all media of communication?

IN SHORT-HOW'S YOUR PUBLIC IMAGE?

Please turn to page 15 for an important suggestion.

12 PROPOSED AMENDMENT TO THE CONSTITUTION AND BY-LAWS OF THE AMERICAN LAND TITLE ASSOCIATION

n accordance with the provisions the Standard Title Insurance Ac­ I of Article XI, Section 1 of the counting Committee" and after the ALTA Constitution and By-Laws w o r d s "Constitution and By­ it is recommended that Section 4 Laws Committee" add a comma, of Article VII, and Article VIII, of and the words "Young Titlemen's the Constitution and By-Laws be C om mi t t e e,"-so that the said amended in the manner set forth paragraph will read as follows: in the following paragraphs in or­ "The President within thirty days der that the "Young Titlemen's after election, shall fill expired Committee" and the "Standard terms and vacancies, if any, in Title Insurance Accounting Com­ the Liaison Committee, the Griev­ mittee" (being now special commit­ ance Committee, the Standard Ti­ tees) become standing committees tle Insurance Forms Committee of the Association: and the Standard Title Insurance 1. Amend the first paragraph of Accounting Committee and shall Section 4 of Article VII to delete appoint all members of the Plan­ the "and" before "the Standard ning, Judiciary, Membership and Title Insurance Forms Committee" Organization, Legislative, Public and substitute a comma therefor, Relations, Constitution and By­ and to insert the words: ... "and Laws Committees, and Young Ti- 13 tlemen's Committee·, and such other 3. Amend Article VIII to re­ Committees as may have been au­ number the present Section 19 as thorized by the Board of Govern­ Section 21, and to insert the fol­ ors or by the members at any con­ lowing new Sections 19 and 20: vention, each to consist of a chair­ "Sec. 19. THE YOUNG TITLE­ man and such number of members MEN'S COMMITTEE shall meet as he shall deem advisable, unless semi-annually at the same time otherwise provided." and at the same place as the Mid­ 2. Amend Section 4 of Article Winter Meeting and the Annual VII to insert, preceding the last Meeting of the Association, for the paragraph thereof, the following purpose of the advancement of the paragraphs: title industry, as well as to arouse "The Young Titlemen's Committee the interest of young titlemen and shall be composed of a Chairman potential titlemen in the American and anyone under a maximum age Land Title Association; the en­ to be established from time to time couragement of cordial intercourse by a majority vote of the members among its members; the improve­ of the Committee in attendance at ment of the relations between the a meeting called by the Chairman title industry and the public; and or Vice Chairman and who, indi­ the furtherance of the professional vidually or through company mem­ interests of the younger members bership, is an active member of of the Association. the Association." "Sec. 20. THE S T A N D A R D "The Standard Title Insurance Ac­ TITLE INSURANCE ACCOUNT­ counting Committee shall be com­ ING COMMITTEE shall review posed of a Chairman and eleven from time to time all accounting other members. Not more than two practices and procedures used by members sh o u 1 d be accredited Association members, recommend from the same state, territory or standard methods and forms for district. No appointments shall be accounting, confer with supervi­ made that will afford any corpo­ sory authorities for the purpose of rate member, or affiliated group determining such practices as said of corporate members, directly or supervisory authorities mi g ht through its or their agents, concur­ deem beneficial for the public in­ rent representation by more than terest, and to develop uniform ac­ two of its officers or employees. counting practices and procedures. The members shall be divided into Recommendations of any sub-com­ three classes of equal number, ini­ mittees shall be subject to approval tially to serve one, two or three by a majority of the whole num­ years, each succeeding class to ber of the Committee. The Com­ serve for three years. The Chair­ mittee shall report at each Annual man may appoint such subcommit­ Convention and Mid-Winter Con­ tees as he deems necessary, each ference of the Association, to the of which subcommittee shall be Title Insurance Section or to the composed of not less than six com­ membership, or to both Section and mittee members, one of whom shall Association membership, as the oc­ be designated as subcommit­ casion shall require, and all re­ tet! chairman." ports and recommendations of the 14 Committee shall require action by majority vote at the Convention or Conference at which they shall be At 2 p.m., Monday, Sep­ submitted, in order to qualify as tember 25, at the 1967 An­ standard practices or forms. All nual Convention, Fr a n k reports of the Committee shall be O'Connor, Chairman of the advisory in nature, and no mem­ Public Relations Committee, ber shall be required to follow assisted by Bob Maynard, their recommendations nor to use Bill Robinson, Ed Schmidt, recommended standard practices or forms, nor to follow recommended Bill Thurman, and Carroll procedures." West will explore in depth Publication of this proposed all facets of public relations amendment in Title News shall for the title industry. These constitute official notice to mem­ are the experts in the field! bers, as provided in Section 1 of One idea you pick up from Article XI of the Constitution and them (and put to use) may By-Laws. represent earnings or sav­ Submitted by the ALTA Com­ ings sufficient to pay the mittee on Constitution and By­ Laws. entire cost of attending the Convention.

Chairman, CHESTER C. McCUL­ LOUGH, Senior Vice President, PLAN NOW TO ATTEND! Chicago Title Insurance Company, Chicago, Illinois 1967 ANNUAL CONVENTION H. B. CLARKE, President, Abstract Company of St. Joseph County, Inc., South Bend, Indiana AMERICAN LAND JOHN J. EAGAN, Vice President and Senior Title Officer, Title Insurance and Trust Company, Los Angeles, TITLE ASSOCIATION California Denver-Hilton Hotel WILLIAM R. GALVIN, Vice Presi­ dent, Pasco Abstract Company, Dade City, Florida Denver, Colorado

RICHARD H. GODFREY, President, September 24-27 American-First Title & Trust Co., Oklahoma City, Oklahoma MARK YOUR JOHN P. MATTHEWS, Vice Presi­ CALENDAR dent, Lawyers Title Insurance Cor­ poration, Atlanta, Georgia 15 WESTERN THEME SET

ALTA's banner wrn be proudly FOR ANNUAI J-\. displayed at the Grand Ball­ room of the Denver-Hilton Hotel ALTA BANNER WU at the time of the 1967 Annual Convention, September 24-27. It TO FLY OV will not be the first. Including the flag of Colorado Territory, and the present flag which has flown over the state since 1876, Colorado has been under at least seventeen different flags. The first known t i t 1 e to Colo­ rado resulted from Coronado's spectacular expedition into the Southwest in 1540-42, giving sub­ stance to Spain's claim to the en­ tire western interior region of the U.S. In 1682, LaSalle floated down the Mississippi River and forth­ with claimed the entire drainage area of the "Father of Waters,'' including a substantial part of

BELOW: In 1803, when Colorado was still a part of the world belonging to the King of Spain, two men stood at the top of an abrupt rise looking down onto a flat plain which stretched for miles between the tall peaks that marked its borders. For Colorado, this was an historic moment. The influence of two shrewd Indians trade: ments of Denver in 1858. Traders John S wives, carried considerable influence with Rocky Mountain Region. During that tim1 hands of the Indians; and the land was no favor of the Indians was important in de· creasing flood of gold seekers from the E

We are indebted to Transamerica Title Im and historical material upon which this f1 16 CONVENTION BE THE 18th FLAG COLORADO

ABOVE: The scream of an exhausted rider and the savace yeUs of pursuing Indians were all it took to open the massive &'&tes of Fort Bent, located on the sun-bleached trails that entered Colorado to the South. Situated on the north bank of the Arkansas River be­ tween the present towns of LaJunta and Las Animas, the Fort was important to Colo­ rado history.

Colorado, for the French King. Also during the 17th a n d 18th Centuries, the British Colonies of New England and Virginia gener­ ously extended their theoretical boundaries all the w a y to the Pacific C o a s t, overlapping the French and Spanish claims.

BELOW: The thrillin&' news of a &'Old dis­ covery in 1858 along the banks of Cherry Creek traveled with amazing speed in all di­ rections. In the States, the news of gold strikes In the Pike's Peak re&'ions broQ&'ht thousands of prospectors scurrying to the Cherry Creek &'Old dig&'ins' in search of their fortunes.

~yed an important part in the early settle­ m Smith and William McGaa, having Indian Cheyennes and Arapahoes who roamed the e to all the lands in the region was in the iect to occupation by white men. Gaining the ing a prosperous new town to handle the in-

ce Company of Colorado for the illustrations ~is based. Between 1763 and 1 8 4 8, Colo­ rado belonged, in varying pro­ portions to France, Spain, Mexico, and the Republic of Texas. When Napoleon decided to with­ draw his claims from the West, and negotiated the famous Loui­ siana Purchase in 1803, part of Colorado came under the jurisdic­ tion of the U.S.A. for the first time. Between that t i m e and 1861, flags over Colorado included those The unique Interfaith Chapel of the U. S. Air Force Academy dominates the backirround of the District of Louisiana (part as a squadron of cadets marches by. of Indiana Territory), the Terri­ tory of Louisiana, Missouri Terri­ tory, the State of Deseret (pred­ ecessor to Utah), Utah Territory, BUT­ New Mexico Territory, Nebraska Territory, and Kansas Territory. MODERN On February 28, 1861, Colorado Territory was created, with its present boundaries-and on Au­ DENVER gust 1, 1876, the Centennial Year of our N a t i o n ' s Independence, Colorado became the 38th State of BECKONS the Union. Plans for the 1967 Annual Con­ vention were given impetus when President Garber met with Con­ vention Chairman, Jim Hickman, and with Tom Holstein, Gordon Burlingame, and members of the The Denver-Hilton Hotel is one of the most modern, efficient, and beautiful of all the ALTA Staff. A fine program of Hilton Hotels. guest speakers, workshop sessions, panel discussions, and industry reports has been outlined in some detail. More a b o u t this in future issues of Title News. ALTA members contemplating attendance at the 1967 Annual Convention will be the honored guests in a modern thriving city set in a panorama of n a t u r a 1 beauty, located in a state not only :vich in history, but also a sight­ seer's paradise. Want to ride a railroad into yesterday? D r i v e across the Denver, the mil~high city, has a population of more than 2 million. Above is the downtown area (looking northwest). world's highest s u s pens ion world's steepest incline railway bridge? Swim in the world's larg­ descending from the rim of the est naturally-h e a t e d outdoor gorge to its bottom at a 45-de­ swimming pool? gree angle. You can do all these things­ Hot Springs Lodge Pool - A and many more-when you vaca­ 600-foot-long pool at Glenwood tion in Colorado, with its rich and Springs is fed by natural hot varied assortment of attractions, springs, which keep its waters at both man-made and natural. a constant temperature of around Here's a list of some of the ex­ 80 degrees the year-round. citing places to see and things to Pikes Peak - You can drive do in Colorado: your auto to the top of what may The Narrow Gauge Railroad­ be America's best-known mountain This unique little narrow-gauge at Colorado Springs, or yoti may passenger train makes a 90-mile reach its 14,110-foot crest by cog round trip daily between Durango railroad. Either way, it's the thrill and Silverton through some of of a lifetime. North America's m o s t awesome Scenic Lifts - Most of them mountain scenery in Southwest are built to carry hordes of skiers Colorado. The nation's last regu­ up Colorado's magnificent ski larly-scheduled narrow guage pas­ slopes. Now, they're just as popu­ senger train will start operations lar for summer ascents to high about June 1. Two trains daily will places. They'll be operating at operate this year. Aspen, Loveland and Arapahoe The Royal Gorge - This fa­ Basins, Vail, B r e c k e n r i d g e, mous landmark near Canyon City Crested Butte,. and Berthoud Pass. boasts t w o man-made superla­ Estes Park has an aerial tramway, tives: The world's highest suspen­ built especially for summer visi­ sion bridge, s o a r i n g 1053 feet tors. above the Arkansas River, and the Air Force Academy - Only 19 seven years old, the $170 million richest square mile on earth, it's home of the Falcons near Colorado still a rip-snortin' town, loaded Springs has become Colorado's with history and color, especially most popular visitor attraction. during the summer o p e r a and The 18,000-acre institution is open drama seasons. for public sight-seeing at all Garden of the Gods - It's a times. spectacular C o 1 o r a d o Springs The Four Corners-It's the only park filled with towering red place in the nation where four sandstone rock formations. Nearby states (Colorado, Arizona, Utah, are other features, like beautiful and New Mexico) meet. It's now Seven Falls, cascading 250 feet reached by a fine new highway down the sheer cliffs of Cheyenne which reaches deep into Navajo Canyon, and the Cave of the Winds, Country. Site is marked by a one of the few natural Colorado monument. caves open to public sight-seeing. Wax Museum-New to Colorado, Denver Mountain Parks-20,000 this new Denver attraction offers acres of natural beauty within a a stroll through history with such few minutes drive of downtown famous A m e r i c a n s as Davy Denver, with herds of buffalo, Crockett, Mark Twain, Brigham deer, and elk; picnic and camp­ Young, Amelia Earhart, Sitting grounds. Bull, and many others. Colorado Railroad Museum­ Buffalo Bill's Grave and Mu­ Steam locomotives, narrow gauge seum - Located atop Lo o k o u t cars, o ld timetables and passes, Mountain, 20 m i 1 e s from down­ form most complete collections of town Denver, the grave and me­ western railroad history and ex­ mentoes of the famous buffalo hibits in the West. It's located hunter are ever-popular with the near Golden, 15 miles west of youngsters and t h e i r parents Denver. alike. Mark your calendars now; plan National Parks, Monuments, and now to attend the 61st Annual Forests - Colorado has two na­ Convention of the American Land tional parks, Rocky Mountain near Title Association at the Denver­ Estes Park, and Mesa Verde near Hilton Hotel, Denver, Colorado, Cortez. T h e monuments are Hov­ September 24-27. enweep and Yucca House near Cortez, Black Canyon of the Gun­ nison near Montrose, Colorado Na­ NEW! tional near Grand Junction, Dino­ "Public Relations saur near Craig, and the Great Sand Dunes near Alamosa. Eleven for ALT A Member national forests offer superb fish­ Companies" ing, sight-seeing, r i ding, and camping. All told, these national A Valuable Guide preserves contain more than 15,- for Your Employees 000,000 acres of America just as it always was. Only $1.50 Each Central City - Once called the 20 Richard A. Hogan, Vice President, Pioneer National Title Insurance Com­ pany, Seattle, Washington, has penetrated the public imagination with his "Dear Dicky" series. Mr. Hogan is known as the Damon Runyan of the Pacific North West. We are pleased to reprint another segment of the continuing series of these imaginative exchanges of letters between a hypo­ thetical titleman and a troubled customer.

Y husband is loaded with strongly influenced the course of M lousy traits but his most his life. loathsome feature is that he is During the formative adolescent emotionally involved with escrows. period, while normal boys were I believe that pre-natal influences drag racing or gassing with las­ played a big part in this. His sies, he spent all his spare time father deposited his momentarily drafting practice escrow instruc­ expectant mother at the hospital tions. Consequently, he never without giving instructions for learned how to treat a girl right. the payment of either the carry­ Admittedly, neither one of us was ing or delivery charges. Evident­ much of a catch at the time of our ly, his father believed that this betrothal. I was somewhat over-age deposit constituted a fu]]. and in grade but sound of limb and faithful discharge of all his paren­ wind and was quite nice looking tal duties for he thereupon dis­ except for a scattering of warts on appeared completely. No one ever my nose. He was neat, if not gaudy, paid for my husband as his mother reasonably wealthy, and his neu­ was kind of a deadbeat also. My roses didn't show on the surface. husband always felt that he had I thought he had real nice manners not been properly delivered be­ as he didn't make noises when he cause of a lack of escrow instruc­ ate or things r.ike that but, as it tions. This incident of birth turned out, he certainly could have 21 used a few lessons on engagement probably should. Your only com­ etiquette. I never got a ring like plaint is that he indulges himself other girls when we became en­ in a few harmless escrows in which gaged. All I got was a puny kiss you wind up with all the loot.. You and a copy of some escrow in­ are doing nothing but winning structions under which he had de­ and, instead of whining, you posited my ring with a bank with should be grinning. instructions to deliver it to me An escrow is a many splendored upon performance of the marriage thing. Just consider all the ad­ ceremony. The instructions were vantages that the house escrow af­ well written and were fair enough fords you. Apparently, the house is as I was allowed reasonabJ.e in­ his separate property since he spection privileges in the presence owned it befor1e marriage. If the of a trust officer but they were no escrow is a valid one, the deed will substitute for a ring. Such instruc­ pass title to you in the event of his tions are definitely not as satisfac­ death. Without the escrow, he tory as a ring for exhibit to one's could devise it by will to anyone wide circle of friends. Moreover, and exclude you completely if he I never did get a decent oppor­ so desired, or, if he died without tunity to have the ring appraised a will, you might have to share until it was too late to do any­ ownership with some of his heirs. thing about it. However the existence of the As a part of his pre-nuptial escrow wouldn't have too much ef­ pitch he also promised to give me fect in a divorce action as the a deed to the house he owned but court in its discretion could award after the ceremony I found that the property to either one of you. he had deposited a deed of the In such cases the court has almost property in escrow with a bank complete discretion in the disposi­ with instructions to deliver it to tion of all property, separate or me upon completion of five yeare community, that is properly im­ of connubial bliss or his death pleaded. from natural causes whichever It would be my suggestion that should first occur. This is real you start playing it cool, have a ducky as I don't think I can main­ few of your nasal warts removed, tain connubiaJ. bliss with him for and start making a home for this that long. One more stinking boy as he shows a lot of promise. escrow and I have had it. Can he He should be allowed unlimited do this to me and what will hap­ access to the pencils and paper pen if I divorce him in the mean­ and otherwise given free scope to time? A girl can stand only so concoct escrows under congenial many escrows. home conditions. BLISSLESS BETSY Dear Blissless: ALT A Directory You sound like a real nut. to me. Unlike many modern husbands he Order Extra isn't a drunk, doesn't pursue per­ Copies oxides, and doesn't beat you like he TODAY 22 KANSAS CITY TITLE PROMOTION W. M. McAdams, president of Kansas City Title Insurance Com­ pany, has announced the appoint­ ment of Thomas Patrick Meyers of Kansas City as an assistant secre­ tary of the firm. Meyers joined Kansas City Ti­ tle in November, 1950, and has served as a closer in the escrow department. He is a native Kansas Citian and attended Westport high school and Kansas City Junior Col­ lege. Before joining Kansas City Title he served four years with the Jackson County Recorder's Of­ ABSTRACTER ENTERS fice. POLITICAL ARENA John S. Blue, owner of the Jas­ WILEY PROMOTED per County Abstract Company, James G. Schmidt, President of ·Rensselaer, Indiana, recently an­ Commonwealth Land Title Insur­ nounced his candidacy for the Re­ ance Company, Philadelphia, Penn­ publican nomination for Mayor sylvania, has announced the pro­ of Rensselaer. motion of Joseph J. Wiley, Jr., to Mr. Blue is certainly well known Assistant Title Officer and Branch of the American to the members Manager. Land Title Association. He was a Mr. Wiley was, for many years, member of the Board of Governors associated with the Frankford from 1954 to 1956, and President Trust Company as manager of the of the Indiana Land Title Associ­ real estate department. He has ex­ ation in 1952 and 1953. perience in real estate appraisals Extremely active in the Jasper and settlement w o r k. In 1961, County area, Mr. Blue participated Commonwealth Land Title Insur­ of the Jasper in the reorganization ance Company acquired the title in- County Plan Commission in 1957 and aided in the development of MEYERS the Jasper County Master Plan out of which was formulated the pres­ ent rural Zoning Appeals, which office he now holds. In 1954 he was appointed Secre­ tary-Treasurer of the Rensselaer Building Savings and Loan Associ­ ation, and in 1966 was e 1 e c t e d President of the association. Mr. Blue is married and has three children. 23 surance business of the Frankford manager of the Yuma Office in Trust Company and Mr. Wiley 1962 and 1963 and returned to transferred as a settlement repre­ Phoenix in 1964 to head up the Es­ sentative. He now has the respon­ crow D e p a r t m e n t. In 1966 he sibility for the management of the joined the executive department of Frankford Branch Office. the Home Office. Mr. Wiley is a grad u ate of Three members of the title in­ Roman Catholic High School and surance company staff were elected the American Institute of Banking. to Vice President. Assuming the He is a member of the Northeast new positions are Harley D. Philadelphia Realty Board, Moose Brown, Raoul T. Jacques, and Lodge, and sits as an active mem­ James R. Sellers. ber on the Northeast Philadelphia Brown is a graduate of Arizona Draft Board. State University. He is a member PROMOTIONS AT TTIC of the Camelback Kiwanis Club. OF ARIZONA Brown has been with the company for nine years and is currently in Transamerica T i t 1 e Insurance charge of the firm's Escrow Opera­ Company of Arizona recently an­ tions in Maricopa County. nounced the following promotions : Jacques is a graduate of Mar­ James M. "Jack" Patterson was quette University and received his elected, by the Board of Directors, LLB degree from the University to the position of Senior Vice Pres­ the ident. of Arizona. He has been with firm for eight years and is cur­ He will be in charge of the es­ rently in charge of the Subdivision crow, title, subdivision trusts and Trust Department in the Phoenix collection services, among other Office. He formerly served as trust things in Maricopa County and officer and assistant manager in will continue as one of the princi­ the Tucson Office. pal executive assistants to John E. Sellers is a graduate of Arizona Griffith, President, in operations. State University. He has been Mr. Patterson joined the title with the firm for eight years and company in April, 1960 and has is in charge of the company's oper­ served in many capacities. He was ations in Yuma County. He is a

PATI'ERSON BROWN JACQUES

24 member of the Yuma Kiwanis He has been active in Rotary, Club and the Yuma Chamber of Chamber of Commerce and The Commerce. Grand Canyon Council of the Boy Edward A. Krutel and Ralph T. Scouts of America. Jackson were promoted to the po­ John Overton was promoted to sition of Assistant Vice President. Manager of Transamerica Title Krutel, an attorney, is an Asso­ Insurance Company's operations in ciate Counsel in the firm's Legal Coconino and Navajo Counties. Department in Phoenix. He is a Mr. Overton has been with the gr a du ate of the University of company since 1959 and prior to Akron Law School and prior to his current assignment was mana­ coming to Phoenix was in the real ger of the Globe and Gila County estate and investment field. He is operations and also was in the President of the Sertoma Club of Phoenix office as a Title Officer. Phoenix. He has been with Trans­ Overton recently was selected as america for four years. "Man of the Year" in Globe and Jackson is a Trust Officer in has s e r v e d that community in the Personal Trust Section dealing many projects with the Chamber with Profit Sharing Trusts and of Commerce, Toastmasters, Opti­ Trust Investments. He attended mist Club, S a 1 vat i on Army, Furman University and is a gradu­ Y.M.C.A., Un i t e d Fund, Globe ate of Arizona State University. America Field Service and many He has been with Transamerica for others. 8 years. Paul Shallenberger was pro­ James G. Synodis, Vice Presi­ moted to manage the Globe and dent, was designated manager of Gila County operations of the the firm's Tucson operations. Syn­ firm. odis has been with Transamerica Shallenberger has been with the Title for 15 years and previously firm since 1960 and previously served as manager of the Coconino served as manager of the Mesa­ -Mohave-Navajo Counties hav­ Chandler operations; and in the ing their main office in Flagstaff; business development and title de­ previously he was manager of the· partments. He came to Arizona Globe Office and also served as a from Illinois in 1957 and his hob­ title officer in the Phoenix office. bies are bowling, golf and hunting. Robert St. John, Vice President, SELLERS was placed in charge of the Title Operations for Maricopa County. St. John had managed Trans­ america Title's Tucson and Pima County Operations since 1962 and prior to that had been Manager of the Yuma Office since 1953. St. John has been in the title industry for 22 years, being first associ­ ated with Guarantee Title and Trust Co. in Prescott which was acquired by Transamerica in 1960. 25 CHEATHAM STAFFORD RAFFAELLI

TEXARKANA eligible for the continuing pro­ "MILLION DOLLAR CLUB" gram, Prud'homme s a i d. Each Lawyers Title Agency of Texar­ year Rezltors may submit docu­ kana, Texas today announced six mentation in the form of closing Texarkana Realtor members as statements on sales. Total sales of charter members of the "Lawyers one million dollars, within a three Title of Texarkana Million Dollar year time limit, make the salesman Club." eligible for club membership. Each of the Realtors honored Jay D. Stafford was presented a has documented at least one mil­ pin with a two diamond insert for lion dollars in real estate sales, ac­ sale of over four million dollars of cording to Lawyers Title Agency real estate within the 36 month President M. Edwin Prud'homme. period. R. P. (Bob) Cheatham was The six charter members are R. given a pin with one diamond in­ P. Cheatham, Tom H. Wooten, Ann serted for sales of over two mil­ Raffaelli, Jay D. Stafford, Ethel lion dollars during the time period. Phillips and Alex Sanderson III. Ethel Phillips and Ann Raffaelli, The Realtor recognition program both of whom sell to the home­ was announced last year and is owner market, each sold over 90 dedicated to the recognition of the h o u s e s during the 36 month individual accomplishments of li­ qualification period. Tom H. Woo­ censed real estate brokers and ten and R. P. Cheatham specialize salesmen. Licensed brokers and in the sale of commercial real es­ salesmen in Texas or Arkansas, or tate. Jay D. Stafford and Alex San­ both, who are m e m b e r s of the derson III emphasize the sale of Texarkana Board of Realtors, are farm land.

WOOTEN PHILLIPS SANDERSON

26 TWO NEW DIRECTORS AT trustees of the Urban Land Insti­ KANSAS CITY TITLE tute and the local and state· Cham­ Kansas City Title Insurance ber of Commerce. Company, Kansas City, Missouri, V.P. AT TITC has announced the election of two NEW new members to the firm's Board The election of Gerald H. lgl as of Directors. Menefee D. Black­ Vice President of Title Insurance well and John J. Ruddy were elec­ and Trust Company of San Fran­ ted at a meeting of the firm's cisco, California, has been an­ directors held recently at the home nounced by Ernest J. Loebbecke, office. Chairman of the Board and Chief The two fill the vacancies on Executive Officer. the board left by the. death of Concurrently, it was announced Edward J. Eisenman, retired presi­ that lgl, former association counsel dent and board chairman of Kan­ in the San Francisco division of­ sas City Title, and the resignation fice, was promoted to division of John C. Taylor, who is retired. counsel. Mr. Blackwell is a partner in A native of Klamath Falls, Ore­ Caldwell, Blackwell, Sanders & gon, lgl is a graduate of the Univer­ Matheny in the Federal Reserve sity of Oregon, and of the Univer­ Bank Building. He is a member sity of Michigan Law School. He of the American, Missouri and joined the title company in January, Kansas City Bar associations. 1960 after prior service with a Blackwell is also a trustee of the law firm and an abstract and title William Rockhill Nels on Trust company. He has served the com­ and the Midwest Research Insti­ pany as a legal department trainee, tute and a member of Phi Beta assistant advisory title officer and Kappa. as associate counsel prior to his Mr. Ruddy is Vice President new assignment. and Secretary of the J. C. Nichols lg! is a member of the State Bar Company. He is a member of the of California, San Francisco Bar Missouri, Texas and Kansas City Association, San Francisco Barris­ Bar association, the Kansas City ters Club, Bohemian Club, and Real Estate Board, the board of Toastmasters Club.

BLACKWELL RUDDY IGL

27 TITC PROMOTIONS and the New York University The promotion of Floyd B. School of Law. After serving with Cerini, Vice President, to the posi­ the United States Navy during tion of Assistant General Counsel World War II and Korea, he joined for Title Insurance and Trust a California oil company in San Company, Los Angeles, California, Francisco, as a m e m b e r of its has been announced by Ernest J. executive staff. He went into priv­ Loebbecke, Chairman of the Board ate practice in Orange county in and Chief Executive Officer. 1960, left to join Title Insurance Cerini was formerly Los Angeles and Trust Company in 1964, and Division Counsel. subsequently was named Associ­ Cerini Joined t h e company in ate Counsel of the company. He 1960 and served as assistant to was named Assistant Division the Senior Title Officer until Counsel in February, 1966. He is 1963, when he was named Los a member of both the California Angeles Division Counsel. Prior to and New York Bar Associations. joining TI, he had for many years Concurrently with his promotion, served as the Executive Vice Pres­ Rove was elected a Vice President ident of the California Land Title of Title Insurance and Trust Com­ Association and is a past Presi­ pany. dent of that Association. Cerini Succeeding Rove as assistant is active with the California Mort­ Los Angeles Division Counsel is gage Bankers Association, Home Dean A. Swift, formerly with the Builders Council of California, firm's Alameda county operations. the Southern California Mortgage Swift, who holds both an AB and B an k e rs Association, and the an LLB from the University of Home Builders Association of Los California, served with the Army Angeles, Orange and Ventura during World War II, being dis­ counties. charged as a First Lieutenant. Be­ Succeeding Cerini as Los Ange­ fore joining the company in 1957 les Division Counsel is Robert G. in Alameda county, he was en­ Rove, f o r m e r 1 y assistant Los gaged in the private practice of Angeles division counsel. Rove is law. He is an active member of a graduate of Brown University the California Bar Association.

CERINI ROVE

28 tion in the schools of Colorado, 1n m€moa1am and graduated from Denver Uni­ ·»> >»-»> ·>» ~~*«<-«<· (((s versity in 1941. Mr. Neid was a member of the Colorado Bar Associ­ ation and was associated for ap­ proximately two years with the Ti­ ARIZONA EXECUTIVE tle Guaranty Company of Denver, now known as Transamerica Title R. Wilbur Rogers, Vice President Insurance Company of Colorado. of T r a n s a m e r i c a Title In­ He was very active in civic and surance Company of Arizona, pas­ public affairs, both in Denver and sed away January 14, 1967. Mr. P h o e n i x. He is survived by his Rogers had been an employee of wife, a son, a daughter, and his Transamerica Title since May 2, mother. 1944, when he started as a clerk in the Title Department. At the COL. PALMER W. EVERTS time of his death he was Vice President in charge of the Title T he entire Title Industry was Department. He was a native of shocked and grieved to learn of Arizona; obtained his schooling in the sudden and untimely passing Glendale, and graduated from Ari­ on March 24th of Col. Palmer W. zona State University in 1944. He Everts who had retired only two was active in church and civic years ago as Executive Secretary work and in the affairs of the Land of the New York State Land Title Title Association of Arizona. Mr. Association, a post he had held Rogers had served as President of since 1937, with a brief leave of that Association and, at the time absence for service in World War of his d e a t h, was serving as II. chairman of the Standard Forms FoUowing g r a d u a t i o n from and Practices Committee. He is Granville High and two years at survived by his wife and one son. the University of Vermont, Pal­ mer received his L.L.B. at Albany Law School, Union University, in TRANSAMERICA TITLE 1916 and was admitted to the New VICE PRESIDENT York Bar in 1917. He was commis­ sioned a second lieutenant in B yron Neid, Senior Vice Presi­ dent of T r a n s a m e r i c a Title EVERTS Insurance Company of Arizona, passed away December 14, 1966. Mr. Neid had been associated with Transamerica T i t 1 e Insurance Company s i n c e September 1957 and rose from Title Attorney to Vice President in charge of the Law Department. He was made a Senior Vice President on February 18, 1966. He was a native of Den­ ver, Colorado; obtained his educa- 29 World War I and served in three school. Mr. Hecke was a member major engagements in Europe and of the American Bar Association, later in the Army of Occupation. the Missouri Bar, the Kansas City In World War II Palmer entered Bar, the American Land Title military service as a major and Association and th e Missouri served for over three and a half Land Title Association. years. He was a Past President of the After the war he served in the Rolla, Missouri, Junior Chamber Real Estate Acquisition Dept. in of Commerce. Mr. Hecke was a Washington, D.C., New Orleans, Marine Corps veteran of World Louisiana and in New Caledonia. War II and the Korean War. Following extensive service in De­ troit, Michigan in the sales pro­ MRS. H. STANLEY STINE motion field of title insurance, 617 BENNINGTON LANE Palmer came to New York where SILVER SPRING, MD. 20910 through his many p u b 1 i s h e d articles and lectures and his serv­ ice with our Association, he be­ March 30, 1967 came known as "Mr. Title Insur­ ance." This Association has benefitted in many ways 'by Palmer's years MR. JAMES ROBINSON of devotion and efforts as our Ex­ AMERICAN LAND TITLE ASSO- ecutive Secretary and by the con­ CIATION tribution he has made to our in­ 1725 EYE STREET N.W. dustry. WASHINGTON, D.C. The officers and members of DEAR JIM: the American Land Title Associa­ Thank you for your nice note of tion extend their sincere sym­ March 29th and the two copies pathies to Palmer's wife, Neta, of of the Title News containing 22A Buckingham D r iv e, Lake­ the beautiful tribute in memory wood, N.J. and daughters, Mrs. of Dutch by the American Land Title Association. Ji lice Barnett and Mrs. Barbara Dutch loved his many friends Ro·binson. He will be long remem­ in the Association and always bered by his many friends and as­ looked forward with a great deal sociates. of pleasure to attending a11 the meetings. I too have many pleas­ RUSSELL R. HECKE, SR. ant memories of the many con­ Russell R. Hecke, Sr., Kansas ventions which we attended. City, Missouri, died recently at If you can spare a couple more the age of 46. copies of the News, I certainly will appreciate it. I would love Mr. Hecke had been a member to send them out of town to some of the 1 e g a 1 department of the very close friends. Kansas City Life Insurance Com­ Again, many thanks and with pany for ten years. He attended my very best regards, I am of Omaha and was the University Sincerely, a graduate of the University of Missouri at Kansas City law FREDA STINE 30 l ERS

THE EQUITABLE LIFE ASSUR­ SHIELDS ASSOCIATES, INC. ANCE SOCIETY OF THE P. 0. BOX 344 UNITED STATES WOODBURY, L. I., N. Y. 11797, NEW YORK CITY U.S. A. January 31, 1967 January 5, 1967 Mr. William J. McAuliffe, Jr. James W. Robinson, Editor Executive Vice President Title News American Land Title Association 1725 Eye Street, N.W. 1725 Eye Street, N. W. Washington, D.C. '\V'ashington, D. C. 20006 Dear Mr. Robinson: Dear Mr. McAuliffe: It is our understanding that, I know that you will be happy on occasion, firms or individuals in to learn that Gus Mitchell of my your industry accumulate quantities of used (cancelled staff was promoted to Associate ) postage stamps which are then sold to dealers and/ General Solicitor on December 15, or collectors on a weight basis. 1966, and that, as such, he becomes Our firm makes relatively large an officer of the Society. He will and continuous purchases in this continue to serve as one of my most field and I would appreciate it if valuable assistants and, in addition, you could let us know whether your he will as hitherto fulfill important organization has such material responsibilities in connection with available. If not, you could, per­ the Society's residential mortgage haps, suggest a source of supply business. either within or outside your in­ Very truly yours, dustry. WARNER H. MENDEL Very truly yours, Vice President and RICHARD M. KAHN General Solicitor President WHM/ ic mba 31 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410

OFFICE OF THE SECRETARY MARCH 7, 1967

Mr. James W. Robinson American Land Title Association Room 302 1725 I Street, N. W. Washington, D. C.

Dear Mr. Robinson: Dr. Ricardo Palacios, the Venezuelan lawyer who visited your office recently, is completing his sixty-day cultural grant awarded by the U.S. Embassy in Venezuela. The opportunity to converse with you and Mr. McAuliffe was indeed a rewarding experience for him and certainly contributed towards a successful and fruitful program. The Division of International Affairs also extends its gratitude since only through these types of professional exchanges and discussions can we provide visitors to our shores with an appropriate orientation to U.S. norms, business practices and national goals. Your cooperation is appreciated.

Sincerely yours, Dennis J. Barnes Program Officer Division of International Affairs 32 MEETING TIMETABLE

April 30, May 1-2, 1967 July 9-10-11-12, 1967 Iowa Land Title Association New York State Land Title Association Holiday Inn, Okoboji Whiteface Inn, Lake Placid August 17-18-19, 1967 May 18-19-20-21 , 1967 Montana Land Title Association Washington Land Title Association Rainbow Hotel, Great Falls Bayshore Inn, Vancouver, B.C. August 24-25-26, 1967 May 19-20, 1967 New Mexico Land Title Association White Winrock Hotel, Albuquerque Tennessee Land Title Association Rivermont, Memphis August 24-25-26, 1967 Minnesota Land Title Association May 21-22-23, 1967 Rainbow Inn, Grand Rapids Pennsylvania Land Title Association Hotel Hershey, Hershey August 24-25-26-27, 1967 Ohio Title Association Atwood Lake, New Philadelphia May 31, June 1-2-3, 1967 California Land Title Association August 24-25-26, 1967 The San Francisco Hilton Utah Land Title Association Ogden June 7-8-9, 1967 September 10-11-12, 1967 Illinois Land Title Association Missouri Land Title Association Drake Hotel, Chicago Plaza Inn, Kansas City June 9-10, 1967 September 14-15-16, 1967 Colorado Land Title Association North Dakota Land Title Association Writer's Manor, Denver Westward Ho Motel. Grand Forks September 15-16, 1967 June 15-16-17, 1967 Louisiana Land Title Association Idaho Land Title Association Royal Orleans, New Orleans Holiday Inn, Twin Falls September 23, 1967 June 16-17, 1967 Kansas Land Title Association South Dakota Land Title Association Denver Hilton, Denver, Colorado Plateau Hotel, Watertown September 24-25-26-27, 1967 ALTA Annual Convention June 24-25-26-27-28, 1967 Denver Hilton Hotel, Denver Colorado Michigan Land Title Association Hidden Valley Odober 12-13-14, 1967 Wisconsin Title Association The Pioneer Hotel, Oshkosh June 28-29-30, July 1, 1967 Oregon Land Title Association October 22-23-24, 1967 Sa!ishan Lodge, Gleneden Beach Indiana Land Title Association Stouffer's Inn, Indianapolis July 7-8, 1967 November 3-4, 1967 New Jersey Land Title Association Arizona Land Title Association Seaview Country Club, Absecon Pioneer Hotel, Tucson American Land Title Association