SECTION 32 - CONTINUATION OF INSURANCE

1. In addition to the provisions providing for Continuation of Insurance After Conveyance of Title contained in the ALTA owner's policy, or the provisions providing for Continuation of Coverage in the TIRSA Owner's Extended Protection Policy (TOEPP), and subject to any rights or defenses which an insurer would have had against the named insured, an insurer shall have continuing liability, under an owner's policy issued by said insurer, on or after January 28, 1999, to a grantee of an insured, without endorsement of the policy, but only as of its original date without liability as to the validity, form and sufficiency of the instrument(s) effectuating the said transfer, and only under the following conditions, as applicable:
   
   
   1. If an insured title is transferred:
      
      
      1. from a parent company to a wholly-owned subsidiary company; from a wholly-owned subsidiary company to its parent company; from one company to another, each of which are wholly-owned subsidiaries within one corporate group, or each of which have identical stockholders, partners, or members in identical proportion; by a corporation to its stockholders pursuant to a plan of liquidation; by the named insured individual or individuals in exchange for all of the capital stock of a corporation; from a partnership to its partners upon the dissolution of the partnership; by the named insured individual or individuals to a partnership as part of the named insured's capital contribution to the partnership; from a limited liability company to its members upon the dissolution of the limited liability company; or by the named insured individual or individuals to a limited liability company as part of the named insured's capital contribution to the limited liability company; provided that as a result of any transfer described above there is no change in the beneficial ownership as the result of such transfer of title, and further provided that any transfer described above is made for no consideration. Company as used in this paragraph is defined as a corporation, partnership, or limited liability company.
         
         
      2. to a member of the named insured's immediate family as a gift, for no consideration. For the purpose of this section, immediate family is limited to the spouse, "issue" as that term is defined in the New York Estates, Powers and Trust Law, parents, brothers and sisters (but not the issue of brothers and sisters) of the named insured
         
         
      3. for no consideration to a trust created by the named insured in which all of the beneficiaries, lifetime and remainder, are either the insured or members of the insured's immediate family as defined in subsection (b) above.
         
         
   2. Consideration for purposes of subsections (a), (b) and (c) above shall exclude the value of any lien or encumbrance remaining on the land or interest thereon at the time of the transfer.