SECTION 12 - CONSTRUCTION LOAN INSURANCE

1. The construction mortgage rate is the owner's rate. A policy insuring a construction mortgage shall not be issued for less than the face amount of the construction mortgage and the rate, based on the full amount of the construction mortgage, must be paid at the time of the first advance. The rate shall include the cost of the first five continuations during the life of the construction mortgage. An additional charge of $200 for each subsequent title continuation search beyond the fifth shall be made and collected at the time of each such continuation.
   
   
2. Where there is no change in the ownership of the fee estate or leasehold estate and no change in the ownership of the mortgage, the premium for a policy or endorsement insuring the conversion of an existing construction mortgage to a permanent mortgage shall be thirty percent (30%) of the loan rate. Additional insurance in excess of the amount of the construction loan shall be calculated at the full loan rate.
   
   
3. Where there is no change in the ownership of the fee estate or leasehold estate and there is a change of ownership of the mortgage, the premium for a policy or endorsement insuring the conversion of an existing construction loan mortgage to a permanent mortgage shall be seventy percent (70%) of the loan rate. Additional insurance in excess of the amount of the construction mortgage shall be calculated at the full loan rate.
   
   
4. Where there is a change of ownership of the fee estate or leasehold estate, the premium for a policy or endorsement insuring the conversion of an existing construction loan mortgage to a permanent mortgage shall be calculated at the full loan rate.